MAHENDER SINGH vs UNION OF INDIA AND ANR

The Supreme Court clarified the application of Rule 10(4) of the Central Civil Services (Classification, Control and Appeal) Rules, 1965, stating that it requires (i) a penalty of dismissal, removal, or compulsory retirement, (ii) that such penalty is set aside by a court, and (iii) a decision to hold a further inquiry. The Court held that the appellant's termination was a simpliciter discharge under Rule 5(1) and not a penalty, thus Rule 10(4) did not apply. The retrospective suspension was deemed unjustified, and the appellant was entitled to reinstatement with back wages, modifying the Tribunal's order accordingly.