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2024 Supreme(Chh) 618

IN THE HIGH COURT OF CHHATTISGARH AT BILASPUR
RAKESH MOHAN PANDEY, J.
R.R. Dubey, S/o. Late R. Dubey - Petitioner
Versus
Chhattisgarh State Power Holding Co. Ltd. Through its Chairman and Ors. - Respondents
WPS No. 1186 of 2011
Decided On : 13-08-2024

Advocates Appeared:
For the Petitioner:Dr. Nirmal Shukla, Senior Advocate along with Mr. N. Naha Roy, Adv.
For the Respondents:Mr. Abhishek Sinha, Senior Advocate along with Mr. Ghanshyam Patel, Adv.

IMPORTANT POINT
Gratuity payment can be withheld during the pendency of departmental or judicial proceedings as per Rule 64(1)(c) of the Chhattisgarh Civil Services (Pension) Rules, 1976.

Headnote:

Prevention of Corruption Act, 1988 - Sections 13(1)(e) and 13(2) - Chhattisgarh Civil Services (Pension) Rules, 1976 - Rule 64 - Gratuity payment - Petitioner retired on 31.12.2005, exonerated in departmental enquiry but convicted in criminal case on 27.07.2016 - Gratuity withheld due to pending criminal proceedings - Court held gratuity cannot be paid during pendency of judicial proceedings as per Rule 64(1)(c). (Paras 9, 10, 12, 18, 22)

Facts of the case:

The petitioner, a Chief Engineer, retired amidst ongoing criminal and departmental proceedings. He was exonerated in the departmental enquiry but later convicted in a criminal case.

Findings of Court:

The court found that gratuity could be withheld due to the pending criminal case, despite the departmental exoneration.

Issues: Whether gratuity can be withheld during the pendency of departmental or judicial proceedings.

Ratio Decidendi: The court ruled that gratuity payment is contingent upon the conclusion of all proceedings, affirming Rule 64(1)(c) of the Rules, 1976.

Result: Petition dismissed.

ORDER :

(Rakesh Mohan Pandey, J.) :

1. By way of this petition, the petitioner has sought the following relief(s):-

    “10.1 For grant of stagnation allowance with interest from 13th March, 2005.

10.2 For revision of pay scale with interest from 01.12.2005.

10.3 For payment of gratuity at per latest provision with interest of 18% P.A.

10.4 For computation of final pension with revision and its arrears with interest.

10.5 Bonus up to Dec. 2005 and difference of pay during suspension and arrears due to increments with interest.”

2. At the very outset, Dr. Shukla submitted that he is pressing relief 10.3 only with regard to the payment of gratuity as per the latest provision with the interest @ 18% P.A.

3. The facts of the present case are that the petitioner, who was holding the post of Chief Engineer under the respondents, retired from services on 31.12.2005 on account of superannuation. Prior to that, an FIR was registered against him on 29.03.2000 for the offence punishable under the provisions of Sections 13(1)(e) and 13(2) of the Prevention of Corruption Act, 1988 and Sections 193 and 196 of the IPC. Thereafter, the charge-sheet was filed in the criminal case on 26.02.2006. A departmental enquiry was initiated against the petitioner on the following allegations:-

    CHARGE NO-I

Shri R.R.Dubey, Chief Engineer on (C/C) while working as Chief Engineer (S&P) Raipur from 10.04.2003 to 27.09.2004 committed serious irregularities and grave misconduct while processing the case of procurement of power transformers under Tender. Specification. No. 55 as under :-

"Shri R.R.Dubey had placed IInd phase purchase order No.02-03/CE(S&P)/SEP-III/ASEPIV/695 dtd. 22.12.03 (Rs.1357.80 lakhs) on M/s. Accurate Transformers (P) Ltd, Delhi against TS-55 for procurement of 40 Number. 5 MVA & 100 Number. 3.15 MVA power transformers without obtaining approval of competent authority. Knowingly that the said procurement of power transformers requires approval of competent authority and thereby intentionally exercised powers not vested on him which reflects his conduct and thereby rendered himself liable for disciplinary action for misconduct under rule 3(i) (ii) (iii) of C.G. service conduct rules 1965.

CHARGE NO-II

Shri R.R. Dubey, while working and performing his duty as Chief Engineer (C/C) between 10.04.2003 to 27.09.2004 committed further gross irregularities and misconduct by waiving the security deposit Clause-2 of purchase order No. 02-03/CE(S&P)/SEP-3/ASEP-IV/695 dtd. 22.12.2003. As per clause-2 of purchase order, 10% security deposit was required to be deposited by M/s. Accurate Transformers (P) Ltd, Delhi, in the form of Demand Draft/BG to cover up the performance guarantee of the materials supplied against the order for due and faithful performance of the materials. Thereafter, as permitted by Shri R.R.Dubey the then C.E.(S&P), the security deposit was deducted from the bills of M/s. Accurate Transformers (P) Ltd, Delhi amounting to Rs.65.73 lakhs.

It is learnt that as per letter No. 02-03/SEP-III/ASEP-IV/2329 dtd. 12.05.2004, the security deposit clause-2 has been amended by Shri R.R.Dubey without any prior approval of the competent authority, relevant portion of which is reproduced below:-

"Accordingly Security Deposit Clause of this office order No. 02-03/SEP- II/ASEP-IV/695 dtd. 22.12.2003 for supply of 5 & 3.15 MVA,33/11 KV Power Transformers stands amended to the following extent:-

"The permanent security deposit of Rs.5 lacks furnished by you and accepted by is office shall cover the guarantee of the material supplied against this order for due d faithful performance of the material.

Due to said waival amendment in security deposit Clause-2 the deposit of 10% deducted from the bills of M/s. Accurate Transformers (P) Ltd, Delhi, has been unauthorizedly refunded to the said firm and that too without approval of the competent authority.

Thus, Shri R.R.Dubey, Chief Engineer on C/C (U/S) acted beyond his powers and against the Board’s and financial interest only

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