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Issues:
The issues involved in this case are the entitlement to pay and allowances during the period of suspension, the applicability of Manual guidelines versus statutory Regulations, and the impact of acquittal in criminal proceedings on departmental proceedings. Entitlement to Pay and Allowances: The respondent, a Branch Manager, was acquitted in a criminal case but found guilty in departmental proceedings. The dispute arose regarding the payment of salary and allowances during the suspension period. The Division Bench held that Clause-22 of the Manual on Disciplinary Action governed the case, entitling the respondent to full pay if fully exonerated. The appellants argued that the Manual is merely guidelines, while Regulations are statutory. However, the court upheld the Division Bench's decision based on the specific provisions of the Manual and Regulation 15(2). Applicability of Manual Guidelines vs. Statutory Regulations: The crux of the matter was the interpretation of Regulation 15 and Clause 22 of the Manual. The appellants contended that the Manual is non-binding and Regulations hold statutory force. They argued that the acquittal in criminal proceedings does not impact departmental proceedings. On the other hand, the respondent's counsel emphasized that the suspension was under Regulation 12(1)(b) due to the criminal case, and thus, Clause 22(8) of the Manual applied, granting full benefits upon acquittal. Impact of Acquittal on Departmental Proceedings: The court analyzed the relevant provisions of Regulation 12 regarding suspension and Regulation 15 concerning pay and allowances. It was noted that Regulation 15(1) deals with exoneration in departmental proceedings, while Regulation 15(2) covers cases not under departmental proceedings, including criminal trials. The court highlighted Clause 22(8) of the Manual, which aligns with Regulation 15(2), providing benefits upon acquittal by a criminal court. The court affirmed the High Court's decision, stating that the respondent was entitled to benefits as per Clause 22(8). In conclusion, the Supreme Court dismissed the appeal, upholding the Division Bench's decision regarding the respondent's entitlement to pay and allowances based on the Manual guidelines and relevant statutory Regulations. The judgment clarified the interplay between criminal acquittal and departmental proceedings, emphasizing the specific provisions governing such situations.
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