Exonerated Employees Must Be Considered for Promotion: Punjab & Haryana High Court Orders Promotion and Interest on Delayed Dues

In a landmark decision delivered on October 14, 2024, the Punjab and Haryana High Court, presided over by Justice Namit Kumar, ruled in favor of Tilok Kumar, a retired Field Officer of the Punjab State Cooperative Supply and Marketing Federation (Markfed). The court ordered notional promotion for Kumar, acknowledging the injustice of his denied promotion during his service, and directed the payment of interest on his delayed retiral dues.
The court firmly held that once an employee is exonerated from all charges, they must be considered for promotion. Kumar’s promotion had been unfairly withheld due to pending charge-sheets and a criminal case, which were later dropped or dismissed in his favor. The court highlighted that “Every civil servant has a right to have their case considered for promotion according to their turn,” referencing the right to equal treatment under Articles 14 and 16(1) of the Constitution.
One of the key grievances was the inordinate delay in the payment of Kumar's retiral benefits. Despite retiring in June 2012, he only received his dues in May 2020, a delay of nearly eight years. The court ruled that such a delay was unjustifiable and ordered Markfed to pay interest at 6% per annum on the delayed amount, starting from October 1, 2012, to the actual payment date. "Delayed benefits without valid justification must attract compensatory interest," the court emphasized.
Tilok Kumar joined Markfed in 1975 and retired in 2012 after 36 years of service. Despite his long tenure, his promotion to Senior Branch Officer, due in September 2008, was withheld due to two charge-sheets and a criminal case filed against him. The first charge-sheet accused him of causing financial loss to Markfed, and the second alleged misappropriation of old fertilizer stocks. Additionally, a criminal case was lodged against him in 2007.
Kumar fought to clear his name. The charge-sheets were withdrawn in December 2012 and March 2020, and he was acquitted in the criminal case in May 2014. Yet, his promotion and retiral benefits remained unresolved until this judgment.
The High Court, in its ruling, emphasized the principle laid down by the Supreme Court in previous cases like C.O. Arumurgam v. State of Tamil Nadu and State of Punjab v. Chaman Lal Goyal, which affirms the right of an employee to be considered for promotion once exonerated. The court stated:
"The promotion of persons against whom charges have been framed may be deferred till the proceedings are concluded, but they must be considered for promotion if they are exonerated or acquitted from the charges."
Given that Kumar had cleared all charges, the court directed that he be considered for notional promotion to the post of Senior Branch Officer from September 11, 2008, with all consequential benefits.
Failure to Consider Promotion Despite Exoneration: A Fundamental Right Violated
The court’s ruling reinforces the legal principle that exoneration from charges restores an employee's right to be considered for promotion. The delay in promoting Kumar violated this fundamental right. Justice Kumar noted:
"An employee’s right to promotion is not merely a procedural formality but a constitutional guarantee that must be respected, especially after exoneration from false charges."
Interest on Retiral Benefits: A Necessary Compensation for Delayed Payment
The court also ordered interest on the delayed retiral dues, referring to the Full Bench decision in A.S. Randhawa v. State of Punjab, which held that any undue delay in releasing an employee's dues must be compensated with interest. The judgment reflects the court’s clear stance on the state’s responsibility:
"A retiree is entitled to immediate disbursement of retiral benefits, and failure to ensure timely payment demands compensation through interest."
Consider Notional Promotion: The petitioner is to be considered for promotion to Senior Branch Officer from September 11, 2008, with all related benefits.
Pay Interest on Delayed Dues: Interest at 6% per annum must be paid on the delayed payment of retiral dues from October 1, 2012, until the date of actual payment, to be completed within three months of the court's order.
This ruling not only grants relief to Tilok Kumar but also sends a strong message to organizations regarding the timely handling of employee promotions and retiral benefits. The decision sets a precedent for other cases where exonerated employees face unjustified delays in career advancement and financial entitlements. Kumar’s perseverance in fighting for justice has resulted in a significant victory, and the court’s ruling reaffirms the fundamental rights of civil servants across the country.
Tilok Kumar v. The Punjab State Cooperative Supply & Marketing Federation Ltd.
Decision Date: October 14, 2024