Rajasthan High Court Upholds Reinstatement of Employee Acquitted in Criminal Case

Court dismisses State's appeal, reinforces Labour Court's decision against termination based on pending criminal case

In a significant judgment, the Rajasthan High Court upheld the reinstatement of Smt. Manju Berwa, a former employee of the Medical & Health Department, Bhilwara, whose services were terminated due to a pending criminal case. The Division Bench, comprising Dr. Pushpendra Singh Bhati and Anuroop Singhi JJ., dismissed the State of Rajasthan's special appeal, thereby affirming the decisions of both the Labour Court and the Single Judge.

The case revolved around the termination of Smt. Manju Berwa, who was engaged as a Multi-Purpose Worker on a monthly honorarium. Her services were terminated after she was arrested and held in judicial custody due to an FIR registered on 31st May 2002, involving charges of forgery and conspiracy. Although she was subsequently acquitted by a competent criminal court in December 2011, the State continued to challenge her reinstatement.

The Labour Court had earlier quashed the termination order, directing her reinstatement, and a Single Judge of the High Court modified this by granting notional benefits instead of back wages. The State's appeal, aimed at overturning these rulings, was rejected by the Division Bench, which found no merit in the State's arguments that mere acquittal did not automatically justify reinstatement or entitle the respondent to service benefits.

The Court emphasized that the termination was solely based on the pendency of the criminal case. With her acquittal, the very foundation of the termination order ceased to exist. The Bench noted the absence of any independent material supporting the termination, thus justifying the decisions of the Labour Court and Single Judge.

This judgment reinforces the principle that termination of employment should not solely rely on pending criminal cases, especially when the accused is acquitted. The Court's decision provides much-needed relief to employees facing similar predicaments and underscores the importance of fair and justified termination procedures.

Bottom Line:

Termination of employment based solely on the pendency of a criminal case is unsustainable if the employee has been acquitted by a competent criminal court, and no other independent material supports the termination.

Statutory provision(s): Limitation Act, Section 5; Indian Penal Code Sections 420, 467, 468, 471, 384, 120-B

State of Rajasthan v. Smt. Manju Berwa, (Rajasthan)(DB) : Law Finder Doc Id # 2808606