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PUNJAB STATE ELECTRICITY BOARD NOW PUNJAB STATE POWER CORPORATION LTD. versus RAJ KUMAR GOEL

Citation: [2014] 12 S.C.R. 171 · Decided: 29-08-2014 · Supreme Court of India · Bench: DIPAK MISRA · Disposal: Appeal(s) allowed

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Judgment (excerpt)

[2014] 12 S.C.R. 171 
PUNJAB STATE ELECTRICITY BOARD NOW PUNJAB 
STATE POWER CORPORATION LTD. 
v. 
RAJ KUMAR GOEL 
(Civil Appeal No. 8366 of 2014) 
AUGUST 29, 2014 
[DIPAK MISRA AND VIKRAMAJIT SEN, JJ.] 
Service Law: 
Disciplinary proceedings - Punishment of stoppage of 
five increments without cumulative effect - Held: In such 
punishment, annual increments would not be paid during the 
period and in the sixth year are to be added up to regular 
A 
B 
c 
annual increment. 
D 
Allowing the appeal, the Court 
HELD: When there is a stoppage of five annual 
increments, the same are not paid during the said period 
and thereafter in the sixth year, the increments are added 
E 
up to the regular annual increment. The employee does 
not get the arrears. But if the punishment is not one of 
stoppage of increment simpliciter, the employee loses the 
benefit in perpetuity and after expiry of five years, he 
would start earning the increment without any addition 
F 
and it would start afresh from the first stage because it 
is a permanent postponement. It cannot be said that if the 
punishment of stoppage of increment without cumulative 
effect is imposed for a period of five years, increment is 
.. 
warranted to be released by the end of the year. [Para 17] G 
[178-A-C] 
Ku/want Singh Gill v. State of Punjab 1990 (1) Suppl. 
SCR 426 : 1991 Supp(1) SCC 504 - relied on. 
171 
H 
172 
SUPREME COURT REPORTS 
(2014] 12 S.C.R. 
A 
Punjab State and Ors. v. Ram Lubhaya 1983 (2) SLR 
410; Ranganath Rai v. State of Bihar 1997 (2) PLJR 421; 
Uttam Kumar v. Delhi Jal Board 2001 IVAD (Delhi) 166 -
approved. 
B 
Sarwan Singh v. State of Punjab and Ors. ILR 1985 (2) 
P&H 193 - refered to. 
Case Law Reference: 
1990 (1) Suppl. SCR 426 
relied on 
Para 11 
c 
ILR 1985 (2) P&H 193 
referred to 
Para 12 
1983 (2) SLR 410 
approved 
Para 14 
2001 IVAD (Delhi) 166 
approved 
Para 15 
D 
CIVIL APPELLATE JURISDICTION : Civil Appeal No. 
8366 of 2014. 
From the Judgment and order dated 25.07.2013 in 
Regular Second Appeal No. 796 of 2012 passed by the High 
E Court of Punjab & Haryana at Chandigarh. 
Jayant K. Sud, Chirag Khurana, Jaikirty, Vikash Singh for 
the appellant. 
S. Janani, Deepak Goel, Sunando Raha for the 
F respondent. 
ยท 
The Judgment of the Court was delivered by 
DIPAK MISRA, J. 1. Leave granted. 
G 
2. In this appeal, by special leave, the assail is to the 
judgment and decree dated 25.07 .2013 passed by the learned 
Single Judge of High Court of Punjab and Haryana at 
Chandigarh in RS.A. No. 796 of 2012 whereby the High Court 
has affirmed the judgment and decree passed by the Courts 
H below. 
PSEB NOW PSPC LTD. v. RAJ KUMAR GOEL 
173 
[DIPAK MISRA, J.] 
3. The broad essential facts which are to be stated for 
A 
adjudication of this appeal are that the respondent-plaintiff 
joined the services of the appellant - Punjab State Electricity 
Board (for short 'the Board') on 17 .12.1984 as Lower Division 
Clerk. As the respondent-plaintiff remained absent from duty 
without sanctioned leave from 9. 7.1987 for a considerable time, 
B 
a disciplinary proceeding was initiated against him. After 
following due procedure as envisaged under Punjab State 
Electricity Board Employees (Punishment & Appeal) 
Regulations, 1971, the competent authority imposed the 
punishment of stoppage of five annual increments without c 
cumulative effect and further the period of absence mentioned 
in the Show Cause Notice was directed to be treated as non-
duty period. 
4. Being aggrieved by the aforesaid punishment, the 
respondent filed Suit No. 155 of 2006 for declaration that the 
D 
manner in which the said order of punishment was sought to 
be implemented by the authorities was illegal and absolutely 
unjustified. It was averred in the plaint that the effect of 
ยท stoppage of five increments without cumulative effect should 
mean that the Board shall release each year's increment before 
E 
stoppage of increment in the ensuing year. It is apt to state here 
that the respondent did not challenge the findings recorded by 
the disciplinary authority nor did he call in question the quantum 
of punishment inflicted on him vide. order dated 9.8.2002. 
5. The Board entered contest in the suit and explained the 
position as regards the nature of punishment contending, inter 
alia, that the effect of an award of stoppage of five increments 
without cumulative effect would mean that increments for period 
F 
of five years would be released all together at the e

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