PUNJAB NATIONAL BANK vs BERNARD LAKRA

The Supreme Court examined the applicability of clause 5(a)(iii) of the Bipartite Settlement dated 8.9.1983 concerning subsistence allowance during suspension. The Court held that the respondent was entitled to full pay and allowances after one year only if the enquiry was not delayed due to reasons attributable to him. Since the investigation was conducted by an outside agency (CBI), the Bank's provision of half pay and allowances was upheld, and the High Court's order granting full pay was set aside.