V. Nagarjung vs Sri.Mohunandan Rao Ias on 17 July, 2026

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    Telangana High Court

    V. Nagarjung vs Sri.Mohunandan Rao Ias on 17 July, 2026

    Author: Nagesh Bheemapaka

    Bench: Nagesh Bheemapaka

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                                                                         in wp_3009_2018
                                                                                   NBK, J
    
    
         IN THE HIGH COURT FOR THE STATE OF TELANGANA
                         AT HYDERABAD
    
          THE HON'BLE SRI JUSTICE NAGESH BHEEMAPAKA
    
    
                      CONTEMPT CASE No. 2185 of 2025
    
                                       AND
    
                            Review I.A. No. 2 of 2025
    
                                         In
    
                       WRIT PETITION No. 3009 of 2018
    
                                  17th July, 2026
    
    
    Contempt Case No. 2185 of 2025
    Between:
    V. Nagarjuna, S/o Yakaiah
                                                                       ... Petitioner
                                       AND
    Sri M. Raghunandan Rao, IAS, and others
                                                                   ... Respondents
    Review I.A. No. 2 of 2025
    The State of Telangana,rep. by its Principal Secretary
    Agriculture and Cooperation Department, and another
                                                                     ... Petitioners
                                       AND
    V. Nagarjuna, S/o Yakaiah, and another
                                                                   ... Respondents
    COMMON ORDER:

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    SPONSORED

    The petitioner, V. Nagarjuna, was working as an Assistant Market
    Supervisor in the Agricultural Market Committee, Thorrur, in the year 2012,
    when a complaint was received against him alleging that he had stopped
    certain lorries at the Pedda Nagaram check-post and forcibly collected
    money from them. Based on the complaint, FIR No. 177 of 2012 was
    registered at Thorrur Police Station for the offence punishable under Section
    384
    IPC. After investigation, the police filed a charge sheet before the
    Judicial Magistrate of First Class, Thorrur, and the same was taken on file as
    C.C. No. 568 of 2012. During the pendency of the criminal case, the
    petitioner was placed under suspension vide proceedings dated 25.09.2012.
    After a full-fledged trial, the learned Magistrate acquitted the petitioner vide
    judgment dated 21.03.2013, and he was reinstated into service on
    15.04.2013. However, during the period of suspension, his junior
    (respondent No. 3) was promoted as Supervisor. Since the petitioner was not
    promoted on par with his junior despite his acquittal in the criminal case, he
    filed W.P. No. 3009 of 2018 before this Court.

    1.1. By order dated 02.01.2025, this Court disposed of the writ
    petition by directing the respondent-authorities to consider the case of the
    petitioner for promotion as Assistant Secretary on par with his junior, with
    all consequential benefits, by restoring his seniority position, within a period
    of eight weeks from the date of receipt of the order.

    1.2. Alleging that the respondent-authorities had not complied with
    the order dated 02.01.2025 passed by this Court in the writ petition, the
    petitioner filed Contempt Case No. 2185 of 2025. Seeking review of the
    said order, the respondent-authorities filed Review I.A. No. 2 of 2025.

    2. Heard Mr. Pratap Narayan Sanghi, learned Senior Counsel
    representing Ms. Mantha Lakshmi Anusha, learned counsel on record for
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    the petitioner, and the learned Government Pleader for Services-III. Perused
    the record.

    3. Learned Senior Counsel for the petitioner submits that, subsequent to
    the acquittal of the petitioner, he was granted notional promotion as
    Supervisor with effect from 14.12.2012 on par with respondent No. 3 (Mr.
    Mohd. Lawshareef) vide proceedings dated 27.11.2025. It is contended that
    the respondent-authorities have complied with the orders of this Court only
    partially, as subsequent notional promotions have not been granted to the
    petitioner. It is further contended that once the petitioner has been granted
    notional promotion, he becomes fully eligible for the next promotion, in
    terms of the order of this Court, on par with his junior. It is submitted that
    respondent No. 3 was thereafter promoted as Assistant Secretary with effect
    from 20.12.2021 and later as Secretary with effect from 09.06.2023,
    whereas the petitioner was not considered for promotion as Assistant
    Secretary with effect from 20.12.2021, thereby violating the orders of this
    Court.

    4. Learned Government Pleader for Services-III, based on the counter
    affidavit filed by the Director of Agricultural Marketing, contends that the
    petitioner was placed under suspension on three occasions, namely:

    (i) from 25.09.2012 to 15.04.2013 due to registration of a
    criminal case;

    (ii) from 30.01.2018 to 01.04.2019 on account of financial
    irregularities involving the crediting of public funds amounting to
    Rs.1,75,889 into the petitioner’s personal account; and

    (iii) from 28.04.2023 to 27.06.2024 due to allegations of
    physical assault, abuse, use of unparliamentary language against a
    superior officer Mr. S. Niranjan, the former Secretary of
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    Agricultural Market Committee, thereby creating nuisance, which
    constituted violation of Rules 3(1), 3(2), and 3(3) of the Civil
    Services (Conduct) Rules, 1964.

    4.1. Learned Government Pleader further submits that, seeking
    regularisation of the suspension periods, the petitioner submitted a
    representation dated 11.11.2024 and thereafter filed W.P. No. 35956 of 2024
    before this Court. By order dated 23.12.2024, this Court disposed of the writ
    petition, without entering into the merits of the matter, by directing the
    second respondent-Commissioner to pass appropriate orders on the
    representation dated 11.11.2024.

    4.2. It is contended that, based on the report of the Enquiry Officer,
    the Chairman, AMC, Jangaon, proposed the punishment of “Stoppage of
    two annual grade increments with cumulative effect” and forwarded the
    proposal to the Vigilance Commission for concurrence.

    4.3. It is further contended that one Mrs. O. Uma Maheshwari,
    Security Guard in the Office of the Agricultural Market Committee,
    Jangaon, lodged a complaint before the District Collector, Jangaon, on
    28.03.2025 alleging that the petitioner had misbehaved with her. The
    District Collector, Jangaon, vide letter dated 29.04.2025, directed that the
    services of the petitioner be surrendered to the Director of Agricultural
    Marketing, Government of Telangana, pursuant to which the petitioner
    reported before the Office of the Director of Agricultural Marketing,
    Hyderabad, on 01.05.2025.

    4.4. It is contended that disciplinary proceedings are being initiated
    against the petitioner under the Telangana State Civil Services (Conduct)
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    Rules, 1964, as well as under the provisions of The Sexual Harassment of
    Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013.

    4.5. Learned Government Pleader submits that the first suspension
    period, from 25.09.2012 to 15.04.2013, was regularised after the petitioner’s
    acquittal in the criminal case. However, the disciplinary proceedings relating
    to the other two suspension periods are still pending, and an appropriate
    decision on regularisation of those suspension periods will be taken in
    accordance with law based on the outcome of the disciplinary proceedings.
    It is, therefore, contended that the question of granting notional promotion
    on par with the petitioner’s junior would arise only thereafter and not before.

    4.6. Learned Government Pleader refers to paragraph (e) under the
    grounds of the Review Application, wherein it is stated as follows:

    “e. The Writ petitioner is not eligible for promotion as Asst.
    Secretary as his suspension period from 30.01.2018 to 01.04.2019
    (14 months & 2 days) and 28.04.2023 to 27.06.2024 (13 months & 29
    days) is not regularized. After conclusion of the Disciplinary cases
    pending against him and suspension period regularization of the
    petitioner i.e., Sri V. Nagarjun, Supervisor i.e., from 30.01.2018 to
    01.04.2019 (14 months & 2 days) and 28.04.2023 to 27.06.2024 (13
    months & 29 days) will be examined as per rules and considered for
    promotion as Assistant Secretary as per the orders of the Hon’ble
    High Court Dt. 02.01.2025 in W.P. No. 3009/2018.”

    4.7. Learned Government Pleader refers to the Proceedings dated
    27.11.2025 wherein the petitioner was notionally promoted as Supervisor
    with effect from 14.12.2012 on par with his junior (respondent No.3).

    5. A reply affidavit has been filed by the petitioner in response to the
    counter affidavit, essentially contending that the petitioner was under
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    suspension from 30.01.2018 to 01.04.2019 on allegations of
    misappropriating an amount of Rs.1,75,889 and creating a fake WhatsApp
    group. It is contended that an enquiry into the said allegations was
    conducted after a lapse of three years on 22.03.2021 and concluded on
    05.07.2022; however, the enquiry report was not communicated to the
    petitioner, nor has any punishment been imposed till date. With regard to the
    suspension period from 28.04.2023 to 27.06.2024, it is contended that the
    matter is pending before the Court and that the Court has directed the
    respondent-authorities to treat the suspension period as “on duty”. Though
    punishment has been proposed, the same has not yet been imposed. It is
    further contended that the mere pendency of disciplinary proceedings cannot
    be a ground to withhold promotion once the petitioner falls within the zone
    of consideration and that the petitioner’s name was excluded from the
    promotion panel solely on account of the pending disciplinary proceedings.

    6. Having considered the respective submissions and perused the record,
    it is evident that the petitioner has been granted notional promotion as
    Supervisor with effect from 14.12.2012 on par with respondent No. 3 (Mr.
    Mohd. Lawshareef) vide proceedings dated 27.11.2025. However, it is
    equally borne out from the record that the petitioner was subsequently
    placed under suspension from 30.01.2018 to 01.04.2019 on allegations of
    financial irregularities/misappropriation of public funds to the tune of
    Rs.1,75,889. He was again suspended from 28.04.2023 to 27.06.2024 on
    allegations of physical assault, abuse, use of unparliamentary language on a
    superior officer, Mr. S. Niranjan, former Secretary, and creating nuisance,
    thereby violating Rules 3(1), 3(2), and 3(3) of the Civil Services (Conduct)
    Rules, 1964. Disciplinary proceedings in respect of both these suspension
    periods are pending. It is the stand of the respondent-authorities that, in one
    of the disciplinary proceedings relating to misappropriation of funds, a
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    punishment of stoppage of increments has been proposed and the proposal
    has been forwarded to the Vigilance Commission for concurrence, while in
    the other disciplinary proceedings, the departmental enquiry is still in
    progress. It is also the stand of the respondents that respondent No. 3, Mr.
    Lawshareef, was subsequently promoted as Assistant Secretary and
    thereafter as Secretary on his own merit, and the petitioner cannot claim
    parity merely because his junior was promoted.

    7. In the above backdrop, the point that arises for consideration is –

    “whether the pendency of disciplinary/departmental proceedings against
    the petitioner constitutes a valid ground for denial or deferment of
    promotion?”

    8. In this regard, it would be relevant to refer to the judgment of the
    Hon’ble Division Bench of this Court in N. Srinivasulu v. The State of
    Telangana
    1, wherein the Division Bench referred to the judgment of the
    Hon’ble Supreme Court in C.O. Arumugam vs. State of Tamil Nadu2,
    wherein it was held in paragraph 5 as follows:

    “5. As to the merits of the matter, it is necessary to state
    that every civil servants has a right to have his case considered for
    promotion according to his turn and it is a guarantee flowing from
    Articles 14 and 16(1) of the Constitution. The consideration of
    promotion could be postponed only on reasonable grounds. To
    avoid arbitrariness, it would be better to follow certain uniform
    principles. The promotion of persons against whom charge has
    been filed in criminal case may be deferred till the proceedings are
    concluded. They must, however, be considered for promotion if they
    are exonerated or acquitted from the charges. If found suitable, they
    shall then be given the promotion with retrospective effect from the
    date on which their juniors were promoted.”

    1

    2021 SCC OnLine TS 3528
    2
    1991 Supp (2) SCC 199
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    9. The Hon’ble Division Bench also referred to the judgment of
    the Hon’ble Supreme Court in Union of India vs. K.V. Jankiraman 3,
    wherein the Supreme Court dealt with cases of employees facing
    departmental enquiries and criminal proceedings.
    The Hon’ble Supreme
    Court, in paragraphs 16 and 17 of K.V. Jankiraman (supra), held that the
    sealed cover procedure has to be adopted in respect of an employee
    against whom a charge memorandum has been issued in disciplinary
    proceedings or a charge sheet has been filed in criminal proceedings.
    The Hon’ble Supreme Court further held that “mere pendency of preliminary
    investigation prior to that stage will not be sufficient to enable the
    authorities to adopt the sealed cover procedure.”

    9.1. The Hon’ble Supreme Court further observed that “as has been
    the experience so far, the preliminary investigations take an inordinately
    long time and may never culminate in the issuance of a charge
    memorandum or charge sheet”.The Hon’ble Supreme Court also held that
    “if the allegations are serious, the authorities have the power to suspend
    the employee under the relevant rules, and such suspension itself
    permits resort to the sealed cover procedure.”

    10. It is also relevant to refer to the judgment of the Hon’ble Supreme
    Court in Bank of India v. Degala Suryanarayana 4.

    “14. However, the matter as to promotion stands on a different
    footing and the judgments of the High Court have to be sustained.
    The sealed cover procedure is now a well-established concept in
    service jurisprudence. The procedure is adopted when an employee

    3
    1991 (4) SCC 109
    4
    (1999) 5 SCC 762
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    is due for promotion, increment,etc., but disciplinary/criminal
    proceedings are pending against him and hence the findings as to
    his entitlement to the service benefit of promotion, increment etc.
    are kept in a sealed cover to be opened after the proceedings in
    question are over [see: Union of India v. K.V.Jankiraman, AIR 1991
    SC 2010 at p.2013]. As on 1-1-1986 the only proceedings pending
    against the respondent were the criminal proceedings which ended
    in acquttal of the respondent wiping out with retrospective effect
    the adverse consequences, if any, flowing from the pendency
    thereof. The departmental enquiry proceedings were initiated with
    the delivery of the charge-sheet on 3-12-1991. In the year 1986-87
    when the respondent became due for promotion and when the
    Promotion Committee held its proceedings, there were no
    departmental enquiry proceedings pending against the respondent.

    The sealed cover procedure could not have been resorted to nor
    could the promotion in the year 1986-87 be withheld for the DE
    proceedings initiated at the fag end of the year 1991. The High Court
    was therefore right in directing the promotion to be given effect to
    to which the respondent was found entitled as on 1-1-1986. In the
    facts and circumstances of the case, the order of punishment made
    in the year 1995 cannot deprive the respondent of the benefit of the
    promotion earned on 1-1-1986.”

    11. In the instant case, it is evident that the petitioner was granted
    notional promotion as Supervisor on par with his junior, Mr. Lawshareef
    (respondent No. 3), with effect from 14.12.2012. However, the petitioner
    was subsequently placed under suspension from 30.01.2018 to 01.04.2019
    on charges of misappropriation of public funds to the tune of Rs.1,75,889, in
    respect of which the punishment of “Stoppage of two annual grade
    increments” has been proposed and the proposal is pending before the
    Vigilance Commission for concurrence. Thereafter, in another case
    involving allegations of abuse, assault, use of unparliamentary language,
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    and creating nuisance in the office, the petitioner was placed under
    suspension from 28.04.2023 to 27.06.2024, and the disciplinary proceedings
    in relation thereto are still pending.

    12. Therefore, merely because this Court directed the grant of notional
    promotion as Supervisor on par with respondent No. 3 cannot be construed
    as a blanket direction to perennially continue granting all future promotions
    on par with the junior irrespective of disciplinary proceedings. The notional
    promotion as Supervisor was granted solely on account of the petitioner’s
    acquittal in C.C. No. 568 of 2012 by judgment dated 21.03.2013.

    13. Therefore, in the light of the law settled by the Hon’ble Supreme
    Court in K. Jankiraman(supra), and Degala Suryanarayana (supra), it is to
    be noted that, once an employee is suspended, either due to disciplinary
    proceedings or criminal case, prior to considering his candidature for
    promotion, then his candidature has to be considered under a Sealed Cover
    procedure. If he is exonerated in the departmental proceedings/acquitted in
    the criminal case by the trial Court, then he should be granted notional
    promotion from such prior date when his junior was promoted. In such case,
    he would be entitled to only notional benefits and not actual monetary
    benefits as he has not shouldered / discharged higher responsibilities
    pertaining to such higher/promotion post; and he would be entitled to actual
    monetary benefits only from the date he starts discharging responsibilities of
    higher post. In case he found guilty of the charges against him in the
    departmental proceedings / criminal case, then the authorities can proceed
    against him in accordance with the relevant Service Rules.

    14. Therefore, at the time of constituting the Departmental Promotion
    Committee for considering candidature of an employee for promotion for a
    particular Panel Year, if there are no pending disciplinary proceedings /
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    criminal case against that employee for that particular Panel Year, then the
    candidature of that employee has to be considered outright without resorting
    to Sealed Cover procedure. However, if there are pending cases against an
    employee already by the date of DPC for a particular Panel Year, then he
    should be considered under a Sealed Cover procedure for that particular
    Panel Year. Therefore, in either of the situations, consideration of
    candidature of the employee is inevitable, except for the manner of
    consideration. If the employee is found NOT guilty in the disciplinary
    enquiry/criminal case, then all benefits, notionally, have to be given to him
    from such date when his junior was promoted to the post/grade.

    15. Therefore, considering K.V. Jankiraman(supra), and Degala
    Suryanarayana
    (supra), in the instant case also, if a charge memo has
    already been issued to the petitioner (in connection with misappropriation of
    funds or for the alleged abuse/assault of superior officer) by the date the
    Departmental Promotion Committee is constituted for considering
    promotions for Assistant Secretary, or Secretary, as the case may be, for a
    particular Panel Year, then the candidature of the petitioner has to be
    considered for promotion to the post of Assistant Secretary, or Secretary, as
    the case may be, by following the Sealed Cover procedure. The sealed cover
    has to be opened after conclusion of such disciplinary proceedings. If the
    petitioner is exonerated in the disciplinary proceedings, then he can be
    granted notional promotion from the date his junior was promoted to that
    particular grade/post. The disciplinary proceedings that occurred
    subsequently, cannot deprive the petitioner for consideration of promotion
    to a post for a previous Panel Year.

    15.1. It is also to be noted that the petitioner would be entitled to
    only notional benefits like notional pay fixation, notional increment etc.
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    from such retrospective date, and he cannot claim actual monetary benefits
    from that retrospective date, despite exoneration in disciplinary proceedings,
    as he has not discharged the higher responsibilities related to that higher
    post. The petitioner shall however be entitled to actual monetary benefits
    from the date he assumes charge of the higher post and discharges its
    responsibilities.

    15.2. On the other hand, if the petitioner is found guilty in the
    disciplinary proceedings, then he cannot even claim notional promotion, as
    he is required to be dealt with Service Rules governing such situation.

    16. Accordingly, the Review I.A. No. 2 of 2025 stands disposed of with
    the above directions. The contempt case is closed. There shall be no order as
    to costs. Miscellaneous petitions, if any, pending shall also stand closed.

    ________________________________
    JUSTICE NAGESH BHEEMAPAKA
    17th July, 2026

    ksm



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