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2003 Supreme(Pat) 1101

PATNA HIGH COURT
R.M.Prasad, J.
Ravi Kumar Verma
Versus
Bihar State Electricity Board
Civil Writ Jurisdiction Case No. 1646 of 2000 ;
Decided On : OCTOBER 23, 2003

The main legal point established in the judgment is the statutory right to pension, the impact of Rule 43(b) of the Bihar Pension Rules, and the need for completion of proceedings within a reasonable time.

Headnote:

Pension Withholding - Bihar State Electricity Board - Indian Electricity (Supply) Act, 1948, Regulation 77, Rule 43(b) of the Bihar Pension Rules - The court discussed the applicability of Rule 43(b) of the Bihar Pension Rules, Regulation 77, and the Indian Electricity (Supply) Act, 1948 in the context of withholding pension and gratuity. The judgment highlighted the legal provisions governing the release of pension and gratuity, the interpretation of Rule 43(b), and the impact of the Indian Electricity (Supply) Act, 1948 on the case.

Fact of the Case:

The petitioner, a retired Chief Engineer of the Bihar State Electricity Board, sought the release of his 10% pension, gratuity, and leave encashment. The petitioner was involved in a departmental proceeding and a criminal case related to alleged misconduct during his tenure. The Board withheld 10% of the petitioner's pension and gratuity during the pendency of these proceedings.

Finding of the Court:

The court found that the Board's withholding of the petitioner's pension and gratuity was not justified. It held that the departmental proceeding initiated prior to retirement lapsed on superannuation, and the Board had no legal basis to continue withholding the petitioner's pension and gratuity. The court directed the Board to release the remaining pension, gratuity, and leave encashment to the petitioner.

Issues: The issues involved the legality of withholding the petitioner's pension and gratuity, the applicability of Rule 43(b) of the Bihar Pension Rules, and the impact of the Indian Electricity (Supply) Act, 1948 and Regulation 77 on the release of pension and gratuity.

Ratio Decidendi: The court held that the departmental proceeding initiated prior to retirement lapsed on superannuation, and the Board had no legal basis to continue withholding the petitioner's pension and gratuity. It emphasized the statutory right to pension and the need for completion of proceedings within a reasonable time.

Final Decision: The writ application was allowed, and the respondent-Board was directed to release the remaining amount of pension, gratuity, and leave encashment to the petitioner within two weeks. The court also imposed a cost on the concerned authority for non-compliance.

Judgment

R.M.Prasad, J.

1. In this writ application, the petitioner, who retired as Chief Engineer while posted at the headquarters of the Bihar State Electricity Board, Patna (hereinafter referred to as the Boards) on 31-3-1997, is aggrieved on account of non-release of his 10% pension, gratuity and leave encashment. He was, however, paid 90% of pension and the amount of GPF.

2. In short, the relevant facts of the case are that the petitioner was initially appointed as Assistant Electrical Engineer in the service of the Board on 1-4-1960 and later promoted to the post of Electrical Executive Engineer on 1-7-1968 and thereafter, to the post of Electrical Superintending Engineer on 20-8-1982 and ultimately he superannuated on 31-3-1997 while holding the post of Chief Engineer.

3. While the petitioner was posted as General Manager-cum-Chief Engineer, Barauni Thermal Power Station, Barauni (Muzaffarpur Thermal Power Station Kanti, Muzaffarpur), he was prima facie found guilty of gross misconduct/irregularities in the matter of purchase of plain water in the name of Chemical Additive from Jitan V/s. Company, New Delhi, and a departmental proceeding was initiated against him, vide Boards Resolution No. 761 dated 25-4-1996, contained in Annexure 1. The petitioner was asked to submit his show cause within a fortnigh of the issue of the said resolution to Sri G.N. Rai Yadav, Member (Tech.) of the Board, who was appointed as enquiry officer and was requested to submit his findings along with the relevant case records to the Board within three months. The petitioner was placed under suspension with immediate effect, vide Boards Office Order No. 3740 dated 2-8-1996, contained in Annexure 2, without prejudice to the departmental proceeding already drawn up against him. During the period of suspection he was allowed to draw only the subsistence allowance. The petitioner was also made an accused in Vigilance Case No. 11/96 in connection with the aforesaid charge under Secs. 468, 420, 201, 409 and 120-B of the Indian Penal Code, 1860 as also under Secs. 13 (i) and 13 (ii) of the Prevention of Corruption Act, 1988.

4. According to the petitioner, the charge in question relates to the period in between the dates 4-12-1991 to 17-3-1992 while the petitioner was posted at Barauni Thermal Power Station. The petitioner submitted his written statement of defence before the enquiry officer, but the departmental enquiry has not been concluded uptill now. The petitioner superannuated on 31-3-1997 while posted as Chief Engineer. Thereafter, the petitioner, vide Boards letter, bearing Memo No. 484 dated 9-4-1997, was communicated that he was released from suspension with effect from 31-3-1997, the day he superannuated, without prejudice to the departmental proceeding drawn up against him and what the decision as to how the period of suspension is to be treated would be taken after submission of finding by the enquiry officer and result of the criminal case.

5. According to the case of the petitioner, in exercise of the power contained in sec. 79-C of the Indian Electricity (Supply) Act, 1948, the Board framed 1976 Regulation to have Common Service Rules for all of its employees. Regulation 2 (xxii) defines gratuity and it means the lumpsum amount payable as one of the terminal benefits to employees retiring from the service of the Board on the basis of the length of qualifying service. It is stated that Regulation 77 stipulates that gratuity shall be paid to the employee in accordance with any Statute or separate Rules/ Regulations governing payment of pension and gratuity framed by the Board provided that the gratuity shall be payable after an employee has rendered five years of satisfactory service whether in permanent temporary or work charge establishment subject to the maximum fixed under the Rules/Regulations, referred to above, except when an employee has been dismissed from service after departmental proceedings or removed from service on the grou



































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