(1) Where the dismissal, removal or compulsory retirement of a Government servant is set aside by a Court of law and such Government servant is reinstated without holding any further inquiry, the period of absence from duty shall be regularised and the Government servant shall be paid pay and allowances in accordance with the provisions of sub-rule (2) or (3) subject to the directions, if any, of the Court.
[G.O.Ms.No. 481, Finance, Dt. 22-12-1971]
(2) [(i) Where the dismissal, removal or compulsory retirement of a Government servant is set aside by the court solely on the ground of non-compliance with the requirements of clause (1) or clause (2) of article 311 of the Constitution, and where he is not exonerated on merits, the pay and allowances payable to the Government servant for the period of dismissal, removal or compulsory retirement or suspension prior to such dismissal, removal or compulsory retirement, as the case may be, shall be limited to the subsistence allowance entitled / already paid under FR 53 for the entire period during which the Government servant was not on duty.]
[Subs. by G.O. Ms. No. 30, Finance (FR-II) Dept., Dt. 15-02-2007]
(ii) The period intervening between the date of dismissal, removal or compulsory retirement including the period of suspension preceding such dismissal, removal or compulsory retirement, as the case may be, and the date of judgment of the Court shall be regularised in accordance with the provisions contained in sub-rule (5) of Rule 54.
(3) If the dismissal, removal or compulsory retirement of a Government servant is set aside by the Court on the merits of the case, the period intervening between the date of dismissal, removal or compulsory retirement including the period of suspension preceding such dismissal, removal or compulsory retirement, as the case may be, and the date of reinstatement shall be treated as duty for all purposes and he shall be paid the full pay and allowances for the period to which he would have been entitled, had he not been dismissed, removed or compulsorily retired or suspended prior to such dismissal, removal or compulsory retirement, as the case may be.
[Provided that back wages to a suspended/dismissed employee can not be paid as a matter of course in cases where the employee has been acquitted by the courts on benefit of doubt]. [Added by G.O.Ms.No. 2, Finance, (FR.II), Dt. 4-1-2006. Further past cases already decided need not be opened]
(4) The payment of allowances under sub-rule (2) or sub-rule (3) shall be subject to all other conditions under which such allowances are admissible.
(5) Any payment made under this rule to a Government servant on his reinstatement shall be subject to adjustment of the amount if any, earned by him through an employment during the period between the date of dismissal, removal or compulsory retirement and the date of reinstatement. Where the emoluments admissible under this rule are equal to or less than those earned during the employment elsewhere, nothing shall be paid to the Government servant.