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Generate professional replies to Show Cause Notices, assessment orders, audit objections, and other legal communications using TaxTMI's AI Drafter.
Step 1 – Issue Identification & Review
The AI analyses your query, notice, order, or uploaded documents and identifies the key issues involved.
• Review the issues identified by the AI
• Add, edit, remove, or refine issues as required
Step 2 – Draft Generation
Once you approve the issues, the AI performs issue-wise legal research and prepares a structured draft response.
• Relevant statutory provisions
• Judicial precedents and Supreme Court, High Court and other citations
• Issue-wise legal analysis
• Practical arguments and supporting content
• Professionally structured draft ready for further review. 
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Issues: (i) Whether the rule in Ajay Kumar Choudhary lays down an absolute proposition that suspension cannot continue beyond three months if the charge-sheet is not served within that period or if no reasoned order extending suspension is passed; (ii) whether the later Division Bench view in R. Balaji could override the earlier Division Bench view and the larger bench line of authority; (iii) whether a challenge to suspension must be decided uniformly on the three-month benchmark or on the facts, gravity of charges, and applicable service rules; (iv) whether revocation of suspension with a direction to post the employee in a non-sensitive post can be granted as a matter of course.
Issue (i): Whether the rule in Ajay Kumar Choudhary lays down an absolute proposition that suspension cannot continue beyond three months if the charge-sheet is not served within that period or if no reasoned order extending suspension is passed.
Analysis: The judgment read Ajay Kumar Choudhary in the context of its facts and noted that the Supreme Court itself did not interfere with the suspension in that case after the charge-sheet had been filed. It held that the observations in that decision were influenced by the analogy drawn from Section 167(2) of the Code of Criminal Procedure, 1973 and could not be treated as a universal rule governing service suspensions. The Court also relied on earlier Constitution Bench authority to hold that suspension pending inquiry or criminal proceedings remains a recognized disciplinary measure and that the legal position cannot be reduced to a mechanical three-month limit.
Conclusion: The rule in Ajay Kumar Choudhary does not lay down an absolute proposition that suspension must necessarily end after three months.
Issue (ii): Whether the later Division Bench view in R. Balaji could override the earlier Division Bench view and the larger bench line of authority.
Analysis: The Court held that R. Balaji did not notice the earlier co-equal Division Bench decisions and was therefore not a binding departure. It further held that the earlier larger bench and Constitution Bench authorities governed the field, and that a Bench of lesser strength cannot disregard binding precedent of greater strength. On that basis, the Court treated the later contrary view as having been rendered without reference to controlling precedent.
Conclusion: The later Division Bench view in R. Balaji was treated as per incuriam and could not displace the earlier binding line of authority.
Issue (iii): Whether a challenge to suspension must be decided uniformly on the three-month benchmark or on the facts, gravity of charges, and applicable service rules.
Analysis: The Court emphasised that the governing service rules expressly permit suspension and revocation, and that judicial review in suspension matters must be minimal. It held that the propriety of continuing suspension depends on the facts of each case, including the nature and gravity of the allegations, whether the case involves criminal trial or departmental proceedings, and the specific service rules applicable to the employee. The Court also noted that suspension is not punishment but a preventive measure to protect the integrity of the inquiry and public interest.
Conclusion: A challenge to suspension must be decided on the facts of each case, having regard to the gravity of charges and the applicable rules.
Issue (iv): Whether revocation of suspension with a direction to post the employee in a non-sensitive post can be granted as a matter of course.
Analysis: The Court held that such a blanket direction may have serious consequences in cases involving grave allegations and cannot be issued automatically merely because the charge-sheet was delayed. The Court required a case-specific assessment before any such relief is granted.
Conclusion: Revocation of suspension with a direction to post the employee in a non-sensitive post cannot be ordered as a matter of course.
Final Conclusion: The reference was answered in favour of sustaining the employer's power to continue suspension on a case-specific assessment, and the contrary view treating the three-month period as an absolute rule was rejected.
Ratio Decidendi: Suspension in service law is not governed by an absolute three-month rule; its legality and continuance must be tested on the facts of the case, the gravity of the allegations, and the applicable service rules, while respecting binding precedent of larger strength.