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2017 Supreme(Del) 944

IN THE HIGH COURT OF DELHI AT NEW DELHI
VALMIKI J.MEHTA, J.
SH. PRABHU LAL - Petitioner
Versus
BSES YAMUNA POWER LIMITED AND ORS. - Respondents
W.P.(C) No.2424 of 2017
Decided on : 20-03-2017

Advocates:
Advocate Appeared:
For the Petitioner:Mr. Anuj Soni, Advocate
For the Respondent:Mr. Sandeep Prabhakar, Advocate, Mr. S.K. Sethi, Advocate, Mr. Sumeet Pushkarna, Advocate

The central legal point established in the judgment is that an employer can withhold the payment of gratuity under Rule 69(1)(c) of the CCS Pension Rules, 1972, based on a pending criminal case of misconduct against the employee, even if there is no pecuniary loss to the employer.

Headnote:

Gratuity - Withholding of Payment - CCS Pension Rules - Rule 69(1)(c), Rule 9 - The court discussed the application of Rule 69(1)(c) of the CCS Pension Rules, 1972, which states that no gratuity shall be paid to the government servant until the conclusion of the departmental or judicial proceedings and issue of final orders thereon. The court referred to Rule 9 and Rule 69 of the CCS (Pension) Rules and highlighted the provisions allowing the withholding of pension or gratuity in cases of grave misconduct or negligence during the period of service, even if there is no pecuniary loss to the employer. The court emphasized that the power to withhold pension or gratuity is not limited to cases where the government has suffered pecuniary loss, as clarified by the Supreme Court in Union of India v. B. Dev (1998) 7 SCC 691. The court also noted that the pending criminal case of dowry against the petitioner constituted misconduct as per the relevant conduct rules, justifying the withholding of gratuity.

Fact of the Case:

The petitioner sought the quashing of the communication refusing to release the gratuity amount payable on superannuation, citing Rule 69(1)(c) of the CCS Pension Rules, 1972, due to a pending criminal case of dowry against the petitioner.

Finding of the Court:

The court found that the impugned order withholding the payment of gratuity was legal and valid, considering the pending criminal case of dowry against the petitioner and the provisions of Rule 69(1)(c) of the CCS Pension Rules, 1972.

Issues: The main issue was whether the employer could withhold the payment of gratuity based on the pending criminal case of dowry against the petitioner, as per Rule 69(1)(c) of the CCS Pension Rules, 1972.

Ratio Decidendi: The court held that the employer was justified in withholding the payment of gratuity under Rule 69(1)(c) of the CCS Pension Rules, 1972, considering the pending criminal case of dowry against the petitioner, which constituted misconduct as per the relevant conduct rules.

Final Decision: The court dismissed the writ petition seeking the quashing of the communication refusing to release the gratuity amount payable to the petitioner on superannuation, upholding the legality of the impugned order withholding the payment of gratuity.

VALMIKI J. MEHTA, J

1. By this writ petition under Article 226 of the Constitution of India, the petitioner seeks the relief of quashing of the communication dated 22.2.2017 issued by the respondent no.1/employer refusing to release the gratuity amount payable to the petitioner on petitioner’s superannuation. The impugned order dated 22.2.2107 reads as under:-

“HR(D) EAST/2016-17/278 DATE 22-02-2017

Sh. Prabhu Lal,

A-88, Nathu Pura,

Near MCD Primary School,

Delhi-84

Sub: Request for releasing payment of entitled Gratuity Amount in favour of Sh. Prabhu Lal, Ex.S.O., E. No.40125088, superannuated from the services of BSES Yamuna Power Ltd on dt. 31.03.2016.

Sir,

With reference your request dated 20.12.2016 regarding releasing of Gratuity amount after retirement from BSES Yamuna Power Ltd on 31.03.2016.

In this connection, it is to bring to your kind notice that as per Rule 69(1)(c) of the CCS Pension Rules, 1972, which are applicable to Ex DVB Employees-“No Gratuity shall be paid to the Government servant until the conclusion of the departmental or judicial proceedings and issue of final orders thereon”.

Thus your request for release the payment of gratuity cannot be acceded to as the case is still sub-judice.

Regards,

Sd/-

(Simrat Matharoo)

Dy. G.M.(HR) BYPL”

2. The impugned order shows that the respondent no.1/employer has relied upon Rule 69(1)(c) of the CCS Pension Rules, 1972 to deny payment of gratuity inasmuch as a criminal case is pending against the petitioner. The issue as to whether an employer can withhold pension or gratuity or both, even if there is no financial loss to the employer, and simply because a criminal case is pending, is no longer res integra and decided by the Supreme Court in the case of Union of India & Others Vs. B. Dev (1998) 7 SCC 691 wherein the Supreme Court has held that for withholding pension or gratuity or both, it is not necessary that the same is done only where pecuniary loss is caused to the employer. This judgment of the Supreme Court has been referred to by a Division Bench of this Court in two connected cases titled as Tulsi Ram Arya Vs. The Chairman Delhi Transco Limited & Ors. and BSES Yamuna Power Limited Vs. Tulsi Ram Arya and Ors. in LPA Nos. 219/2013 and 495/2013 respectively decided on 22.8.2013, and accordingly, the Division Bench held that even in case where there is no pecuniary loss, an employer can yet withhold the pension on account of pendency of a criminal case. Mutatis Mutandis, the aforesaid ratio will apply even with respect to payment of gratuity in view of language of Rule 9 of the CCS Pension Rules. The relevant paras of the judgment of the Division Bench in the cases of Tulsi Ram Arya (supra) and BSES Yamuna Power Limited (supra) are pars 11 to 15, and which paras read as under:-

“11. Rule 9 & Rule 69 of the CCS (Pension) Rules are relevant for considering the present controversy. The relevant provisions of Rule 9 & Rule 69 are quoted below:-

“Rule 9:- Right to President to withhold or withdraw pension

(1) The President reserves to himself the right of withholding a pension or gratuity, or both, either in full or in part, or withdrawing a pension in full or in part, whether permanently or for a specified period, and of ordering recovery from a pension or gratuity of the whole or part of any pecuniary loss caused to the Government, if, in any departmental or judicial proceedings, the pensioner is found guilty of grave misconduct or negligence during the period of service, including service rendered upon re-employment after retirement:

Provided that the Union Public Service commission shall be consulted before any final orders are passed:

Provided further that where a part of pension is withheld or withdrawn, the amount of such pensions shall not be reduced below the amount of rupees three hundred and seventy-five (Rupees Three thousand five hundred from 1-1-2006-see GID below Rule 49) per mensem.

xxxxx

(4) In the case of Government servant who has retired on attaining the age of super




















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