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by sayum
14 February 2026 2:22 PM
In a significant judgment, the Supreme Court has reaffirmed the interpretation of legal fiction in Regulation 20 of the 1979 Regulations, emphasizing its applicability to retired employees. The decision, delivered by Justices Hima Kohli and Rajesh Bindal, has clarified the limitations of this legal fiction in disciplinary proceedings.
The Court stated, "The legal fiction in Clause (iii) of Sub-Regulation 20(3) of the 1979 Regulations must be confined to cases where disciplinary proceedings have been initiated prior to an employee's retirement." It emphasized that the initiation of disciplinary proceedings is not triggered by the mere issuance of a show cause notice but only when a chargesheet is issued, signifying the date of application of mind.
Regulation 20 of the 1979 Regulations had been a subject of debate, with the Court confirming that these regulations do not independently provide for the initiation and conduct of disciplinary proceedings. Instead, the complete procedure for disciplinary proceedings is outlined in the 1976 Regulations. The Court upheld the principles laid down in earlier judgments, emphasizing that an employee must be in service for an order of removal or dismissal to be valid.
In light of these findings, the Court dismissed the appeal filed by the appellant-Bank, which argued for a different interpretation of the legal fiction. Additionally, the Court addressed the issue of non-payment of subsistence allowance to the deceased employee. The Court ordered the appellant-Bank to pay all service benefits due to the deceased employee, along with interest at 7% per annum from the date of his retirement, to his legal heirs within three months.
This judgment settles the controversy surrounding Regulation 20 of the 1979 Regulations, providing clarity on the scope and applicability of the legal fiction in disciplinary proceedings for retired employees. The Court's decision emphasizes the importance of initiating disciplinary proceedings before an employee's retirement to invoke the legal fiction effectively.
Date of Decision: 12 October 2023
UCO BANK AND OTHERS vs M.B. MOTWANI (DEAD) THR. LRS. & OTHERS
