Acquittal In Criminal Case Removes Foundation Of Termination: Rajasthan High Court Upholds Quashing Of Termination By Labour Court

The Rajasthan High Court has held that once an employee is acquitted in a criminal case based on which he was terminated from the services, the basis of such an order ceases to exist.

The Court was considering a Special Appeal whereby the Writ Petition filed by the State was disposed of, while modifying the award passed by the Labour Court only to the extent of back wages, and directing extension of notional benefits to the Employee.

The Division Bench of Justice Pushpendra Singh Bhati and Justice Anuroop Singhi held, "Upon perusal of the record and consideration of the factual matrix of the case, this Court finds no reason to take a view different from that of the learned Labour Court and the learned Single Judge. The very foundation of the termination order dated 17.10.2002 rested upon the pendency of a criminal case against respondent No.1. Once the respondent stood acquitted by a competent criminal court vide judgment dated 03.12.2011, the basis of such termination ceased to exist."

The Appellant was represented by Additional Advocate General N. S. Rajpurohit, while the Respondent was represented by Advocate Saurabh Maheshwari.

Facts of the Case

The Respondent No.1 was engaged as a Multi-Purpose Worker (Female) on a fixed monthly honorarium of Rs.3,500/- under the administrative control of the Appellant–Department of Medical & Health. While she was serving in such capacity, an FIR came to be registered for offences punishable under Sections 420, 467, 468, 471, 384, and 120-B of the Indian Penal Code, allegedly arising out of a family dispute. Pursuant thereto, Respondent No.1 was arrested and produced before Additional Chief Judicial Magistrate, and was remanded to judicial custody. She was subsequently enlarged on bail.

While she tried to get back on her job, she was informed that her services were terminated on the ground that she had remained in judicial custody in connection with the criminal case. Aggrieved by the termination, the Respondent No.1 raised an industrial dispute before the Labour Court.

During the pendency of such proceedings, she was acquitted of all charges by the competent criminal court and the Labour Court later on quashed the termination order and directed reinstatement of the Respondent on the same contractual terms as existing prior to termination.

The Writ Petition preferred by the State against the said award was disposed of by the Single Judge, upholding the findings of the Labour Court but modifying the relief of back wages, while directing extension of notional benefits to the respondent.

Counsel for the State argued that mere acquittal in a Criminal Case does not automatically confer any right of reinstatement or entitle an employee to service benefits, unless the departmental termination is found to be perverse or unsupported by law.

On the other hand, Counsel for the Respondent submitted that since the termination was based solely on the pendency of a criminal case, and the respondent now stands acquitted, the very basis of the termination no longer survives.

Reasoning By Court

The Court agreed with the Counsel for the Respondent and ruled that there is no reason to take a view different from that of the Labour Court and the Single Judge.

"The concurrent findings recorded by both the forums below are well reasoned, supported by the material on record, and suffer from no perversity or jurisdictional error warranting interference in appellate jurisdiction. Consequently, this Court is of the opinion that no interference is called for in the impugned order passed by the learned Single Judge", the Court held.

The Special Appeal was accordingly dismissed.

Cause Title: The State Of Rajasthan v. Smt. Manju Berwa (2025:RJ-JD:47603-DB)

Appearances:

Appellant- Additional Advocate General N. S. Rajpurohit

Respondent- Advocate Saurabh Maheshwari, Advocate Devan Maheshwari

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