Employee Must Be Reinstated After Acquittal If Termination Was Solely Based On Pending Criminal Case: Rajasthan High Court

The Rajasthan High Court held that if the very foundation of termination of an employee was pendency of a criminal case against him/her, and the criminal case resulted in acquittal of the employee by the competent criminal court, the basis of such terminated ceased to exist, and the employer shall reinstate the employee.

The division bench of Dr. Justice Pushpendra Singh Bhati and Justice Anuroop Singhi upheld the order of the Labour Court and the single judge bench that ruled in favour of an employee who was terminated owing to a pending criminal case, and even after acquittal was denied reinstatement.

The respondent was engaged as a Multi-Purpose Worker under the Department of Medical and Health when an FIR was lodged against her arising out of some family dispute. In relation to the FIR she remained in judicial custody for some time, and after being released on bail, wanted to resume her duty.

However, her permission to resume was denied, and subsequently her services were terminated on the ground that she had remained in judicial custody in relation to the criminal case. This termination was challenged by her by filing an industrial dispute, and while these proceedings were pending, she was acquitted in the criminal case.

Accordingly, the Labour Court quashed her termination order, and directed reinstatement which was unsuccessfully challenged by the State before the single bench. Hence, special appeal was filed before the division bench.

It was the case of the State that mere acquittal in a criminal case did not automatically conferred any right of reinstatement upon the employee, or entitled her to service benefits, unless the termination order was found to be perverse or unsupported by law.

This argument was rejected by the Court which agreed with the findings of the Labour Court as well as the single judge, and opined that since the termination order rested upon the pendency of the criminal case, with the employee's acquittal in such case, the termination order ceased to exist.

Accordingly, the special appeal was dismissed and the State was directed to reinstate the respondent.

Title: the State of Rajasthan & Anr. v Smt. Manju Berwa & Anr.

Citation: 2025 LiveLaw (Raj) 381

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