Recovery - Service Matter

A government department incurred losses for which it initiated arbitration and got an arbitration award for full amount of losses against an external supplier. The arbitration award was filed with court for execution. In parallel an enquiry was undertaken against internal employee also and the internal enquiry found him guilty of deriliction of duty/professional miscounduct and he was terminated, his gratuity, leave encashment etc were adjusted against recovery. Around 2 years after the arbitration award and finding that they will not be able to recover full dues from supplier, they filed a case against employee for recovery of dues. Can recovery be made against the employee in such case when arbitration proceedings by employer were initiated only against supplier and arbitration award was received against the supplier which is under execution. Employed also died in between pending trail and also before his statements could be recorded in court. Can LR's be sued in such case.