Suspension Unjustified After Acquittal, Full Salary Must Follow: MP High Court

The Madhya Pradesh High Court has held that a government employee who is completely exonerated in both criminal and departmental proceedings cannot be denied full salary for the period of suspension by mechanically invoking the principle of “no work, no pay.”

Delivering judgment in Writ Petition No. 559 of 2015, Justice Anand Singh Bahrawat ruled that once proceedings culminate in acquittal and no penalty is imposed, the suspension period must be treated as duty, with all consequential benefits.

The petition was filed by Govind Prasad Sharma, an Assistant Grade-III, who was suspended on June 28, 1997, while posted at Government Boys Higher Secondary School, Ganjbasoda, District Vidisha, following a criminal case alleging misappropriation of scholarship funds. The prosecution had been initiated at the behest of the Principal. During suspension, Sharma was attached to the office of the Block Education Officer. Although his suspension was revoked on January 18, 2008, he was later acquitted by the trial court on March 11, 2011. Departmental proceedings initiated on identical charges were subsequently dropped on February 25, 2014, without imposition of any penalty.

Despite this complete exoneration, the authorities treated the suspension period from June 28, 1997 to February 13, 2008 on the principle of “no work, no pay,” denying him full salary and allowances. Challenging this decision, Sharma argued that the action was contrary to Fundamental Rule 54-B and binding judicial precedents. He relied upon decisions including Y.S. Sachan v. State of M.P. and coordinate bench rulings that held employees are entitled to full pay where suspension is found unjustified.

Appearing for the petitioner, Shri Yogesh Chaturvedi contended that once the criminal prosecution and departmental inquiry both ended in his client’s favour, the suspension lost its legal foundation. On the other hand, Shri Yogesh Parashar, Government Advocate, defended the impugned order, asserting that suspension lawfully disentitled the petitioner from claiming salary for the period he did not discharge duties.

The court undertook a detailed examination of Supreme Court precedents, including Ranchhodji Chaturji Thakore v. Superintendent Engineer and Union of India v. Jaipal Singh. It observed that back wages are not automatic upon acquittal, particularly where an employee’s own conduct results in conviction and incarceration. However, the court emphasised that a distinction must be drawn where prosecution is initiated at the behest of the department itself.

Quoting from Jaipal Singh, the court noted that “if the acquittal is based on prosecution initiated by department itself then different consideration may arise.” Applying this principle, Justice Bahrawat found that the criminal case against Sharma had been instituted at the instance of departmental authorities and not due to independent misconduct unconnected with service.

Significantly, the court underscored that even minor penalties can justify payment of salary for suspension periods under certain circumstances, and in the present case, not even a minor punishment had been imposed. It further noted that the State’s reply did not allege that the petitioner had absented himself from headquarters during suspension.

In a categorical finding, the court held that the suspension was “wholly unjustified” once it culminated in complete exoneration in both criminal and departmental proceedings.

Consequently, the order dated February 25, 2014, to the extent it denied full salary, was quashed. The respondents were directed to treat the entire suspension period as duty and to pay the difference of salary and allowances along with consequential benefits within three months. Failing compliance, the petitioner would be entitled to interest at 6% per annum from the date of entitlement till actual payment.

Case Title: Govind Prasad Sharma v. The State of Madhya Pradesh and Others

Date of Order: February 5, 2026

Bench: Justice Anand Singh Bahrawat