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2022 Supreme(AP) 952

ANDHRA PRADESH HIGH COURT AT AMARAVATI
K. Manmadha Rao, J.
Kona Rama Krishna – Appellant
Versus
The State of Andhra Pradesh & Ors. – Respondents
Writ Petition No. 24551 of 2021
Decided On : 05-07-2022

Advocates appeared:
Ramalingeswara Rao Kocharla Kota, Advocate, for the Appellant; GP and Ambati Satyanarayana, SC, for the Respondents

The 2nd proviso to Rule 52(c) of the A.P. Revised Pension Rules, 1980, introduced in 1995, allows the release of up to 80% retirement gratuity to retired Government servants, even if criminal proceedings are pending.

Headnote:

PENSION - RETIREMENT BENEFITS - ENCASHMENT OF EARNED LEAVE - 80% RETIREMENT GRATUITY - RELEASE - PENDING CRIMINAL CASE - LEGALITY - A.P. REVISED PENSION RULES, 1980 - RULE 52(C) - PROVISO 2 - G.O. RT. NO. 1097, DATED 22.06.2000.

Fact of the Case:

Petitioner, a Divisional Manager in AP Forest Development Corporation, retired from service during the pendency of a trap case registered against him. He sought the release of encashment of earned leave and 80% retirement gratuity, citing G.O. Rt. No. 1097, dated 22.06.2000, and various court orders allowing such benefits despite pending criminal cases.

Finding of the Court:

The court noted that Rule 52(c) of the A.P. Revised Pension Rules, 1980, permits the withholding of gratuity during pending judicial proceedings. However, the 2nd proviso to Rule 52(c), introduced in 1995, allows the release of up to 80% retirement gratuity if no portion of the pension is withheld or withdrawn.

Issues: 1. Whether the petitioner is entitled to the release of encashment of earned leave and 80% retirement gratuity during the pendency of a criminal case against him.

Ratio Decidendi: The court held that the petitioner is entitled to the release of encashment of earned leave and 80% retirement gratuity, despite the pending criminal case, based on the following grounds: * The 2nd proviso to Rule 52(c) of the A.P. Revised Pension Rules, 1980, allows the release of 80% retirement gratuity even during pending judicial proceedings. * The Supreme Court's decision in Veerabhadram's case, which held that gratuity can be withheld during pending criminal proceedings, was based on the Rule existing at that time, which did not include the 2nd proviso. * The subsequent amendment to Rule 52(c) in 1995 imposes an obligation on the State to release 80% retirement gratuity to retired Government servants, even if criminal proceedings are pending.

Final Decision: The court directed the respondents to release the amount payable on encashment of earned leave and 80% retirement gratuity to the petitioner within four weeks from the date of receipt of the order.

JUDGMENT

Dr. K. Manmadha Rao, J. - This Writ Petition is filed under Article 226 of the Constitution of India, seeking the following relief:

    '.....to issue a Writ, Order or direction more particularly one in the nature of Writ of mandamus declare the action of the respondents in not releasing the Encashment of Earned Leave amounts and 80% Retirement Gratuity on mere pendency of FIR 1/RCA-CIU-ACB/2020, dated 04.01.2020 pending without any progress, contrary to the Rule 52(C) II Proviso of A.P. Revised Pension Rules and also contrary to the existing Rules, G.O. Rt. No. 1097 Finance and Planning (FW Pen.I) Department, dated 22.06.2000 as illegal, arbitrary, discriminatory, consequently direct the respondents to release Encashment of Earned Leave, along with 80% of Retirement Gratuity of the petitioner, pending FIR 1/RCA-CIU-ACB/2020, dated 04.01.2020 in terms of Similar Orders passed in W.P. No. 2545 of 2020, dated 24.02.2020 and W.P. No. 3421 of 2021, dated 19.03.2021 and Division Bench Orders passed in W.P. No. 30443 of 2016, dated 14.02.2017 and pass such other orders....'

    2. The petitioner was allowed to retire from service on 30.06.2020 in the category of Divisional Manager, Andhra Pradesh Forest Development Corporation (APFDC), Eluru, during pendency of ACB Case. On 04.01.2020 ACB registered a case against the petitioner filed charge sheet, which is registered as FIR No. 01/RCA-CIU-ACB/2020 and it is pending as on today without any progress.

    3. The petitioner submitted a representation to the 2nd respondent, dated 27.09.2020 requesting to issue suitable directions to the concerned to sanction all terminal benefits of encashment of Earned Leave, Retirement Gratuity, GPF, APFLI etc., as he is in facing financial crisis, but till date no orders have been passed. The Government issued specific instructions for sanction of retirement benefits to the Government servants vide G.O. Rt. No. 1097, dated 22.06.2000. The Division Bench of this Court considered the said G.O. and held that in the absence of any recoverable charges, encashment of Earned Leave amount has to be released.

    4. Basing on the order passed by the Division Bench of this Court in W.P. No. 2545 of 2020 the petitioner sought for release of encashment of Earned Leave amount along with payment of 80% retirement Gratuity, pending ACB case and requested to issue a direction to the respondents accordingly, while contending that withholding of 80% retirement Gratuity on account of pendency of ACB Trap Case, is illegal, arbitrary and contrary to proviso (2) of Rule 52(c) of Revised Pension Rules, 1980 and requested to issue a direction to the respondents as stated supra.

    5. During hearing, Sri Ramalingeswara Rao Kocherlakota, learned counsel for the petitioner, while drawing the attention of this Court to G.O. Rt. No. 1097, dated 22.06.2000 which permits the petitioner to get encashment of Earned Leave amount and also to get 80% retirement Gratuity. He has also drawn the attention of this Court to the Order passed by the Division Bench of this Court in W.P. No. 30443 of 2016, dated 14.02.2017 and also to the Orders passed by the Single Judge of this Court in W.P. No. 2545 of 2020, dated 24.02.2020, which is followed by the judgment of the Division Bench, wherein it is directed to the respondents therein to release encashment of Earned Leave and also to pay 80% retirement gratuity to the petitioner therein and requested to issue appropriate direction to the respondents to release encashment of Earned Leave amount along with payment of 80% retirement gratuity to the petitioner herein strictly adhering to 2nd Proviso of Rule 52(c) of Revised Pension Rules, 1980, judgments and G.O. referred above.

    6. Whereas, learned Government Pleader for Services-I mainly contended that while the criminal cases are pending against him, the petitioner is not entitled to clam for release of retirement gratuity, while placing reliance on the judgment of Apex Court in R. Veerabhadram vs. Government of A

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