IN THE HIGH COURT OF DELHI AT NEW DELHI
Rekha Palli, J.
Sanjay Sharma - Appellant
Versus
Government Of Punjab & Ors. - Respondents
W.P.(C) 3137 of 2019
Decided On : 17-11-2022
Pension Dispute - Employee Rights - Punjab Civil Service Rules, Rule 2.2(b) - The court discussed the petitioner's entitlement to full pension and terminal benefits after superannuation, highlighting the application of Rule 2.2(b) of the Punjab Civil Service Rules, which restricts the initiation of departmental proceedings after an officer's retirement. The court found that the respondents unjustifiably withheld the petitioner's terminal dues and pension, emphasizing the employer's obligation to expedite the release of such benefits unless there are valid reasons for withholding them. The court quashed the orders refusing the petitioner's pension and directed the release of the differential amount payable to the petitioner towards his pension, with interest, and issuance of the necessary NOC for the release of his terminal dues.
Fact of the Case:
The petitioner, a General Manager, sought quashing of orders refusing to issue a 'No Objection Certificate' and release his full pension, leave encashment, and gratuity after superannuation. The respondent justified the refusal based on irregularities found in a Special Audit conducted in 2006, leading to financial losses to the government.
Finding of the Court:
The court found that the respondents unjustifiably withheld the petitioner's terminal dues and pension, emphasizing the employer's obligation to expedite the release of such benefits unless there are valid reasons for withholding them.
Issues: The main issue was the petitioner's entitlement to full pension and terminal benefits after superannuation, considering the irregularities found in the Special Audit conducted in 2006.
Ratio Decidendi: The court applied Rule 2.2(b) of the Punjab Civil Service Rules, which restricts the initiation of departmental proceedings after an officer's retirement, and emphasized the employer's obligation to expedite the release of terminal benefits and pension unless there are valid reasons for withholding them.
Final Decision: The court quashed the orders refusing the petitioner's pension and directed the release of the differential amount payable to the petitioner towards his pension, with interest, and issuance of the necessary NOC for the release of his terminal dues.
JUDGMENT
Rekha Palli, J. - The petitioner, who was working at the respondent organisation as a General Manager, has approached this Court seeking quashing of the order dated 27.03.2018 passed by the respondent no.1 vide which it has refused to issue a 'No Objection Certificate' (NOC) in favour of the petitioner so as to enable him to get his full pension after his superannuation on 31.10.2017. The petitioner also seeks to assail the order dated 27.06.2018 passed by the respondent no.1 vide which it has refused to release the leave encashment and gratuity payable to him.
2. Ms.Avnish Ahlawat, learned counsel for the petitioner, submits that the petitioner who had joined the service of the respondent in 1984 and was due to superannuate on 31.10.2015, was based on his excellent work, granted two years' extension, and finally superannuated on 31.10.2017 as Citation Number the General Manager, Punjab Bhawan, New Delhi. However, despite his repeated requests, he has been granted only part of his GPF amount, and has been sanctioned 75% pension. He has also been denied the benefit of computation of 40% pension, which is available to all superannuated employees. She submits that the only reason on which the petitioner has been denied his terminal benefits and full pension, is that, in a Special Audit conducted for the Punjab Bhawan, for the period between 2002-2003 and 2003-2004, some irregularities were pointed out.
3. By placing reliance on Rule 2.2(b) of the Punjab Civil Service Rules, she submits that the petitioner having superannuated more than five years ago, no departmental proceeding can be initiated against him at this belated stage. She, therefore, contends that in the light of the admitted position, that till date, neither any departmental proceedings nor any criminal proceedings have been initiated against the petitioner, he is entitled to forthwith receive all his terminal benefits and full pension.
4. The petition is opposed by Ms. Supriya Manan, learned counsel for the respondent, who contends that, once the Special Audit conducted in the year 2006 found gross financial and administrative irregularities, with a loss of Rs.1,72,65,629/- to the government, the respondent is justified in refusing to sanction full pension to the petitioner, and also to release his other terminal dues. She submits that no action could be taken on this Audit report, as the file pertaining to the aforesaid audit conducted in 2006, was misplaced, and was traced out only in May 2017. Consequently, some of the findings given in the audit report still need to be settled, and it is only when action on these pending issues is completed that steps will be taken to make recoveries from the concerned persons, including the petitioner. She, therefore, prays that the Citation Number writ petition be dismissed.
5. Having considered the submissions of learned counsel for the parties and perused the record, I am unable to appreciate the stand taken by the respondents. Once it is an admitted position that, even after five years since the petitioner's superannuation neither any criminal proceedings, nor any departmental proceedings, have been initiated against him, there is absolutely no justification on the part of the respondents in withholding the petitioner's terminal dues. An employee after rendering long years of service, especially like the petitioner, who was even granted extension after he reached the prescribed age of superannuation and worked at the respondent organisation for 33 years, looks forward to receiving his terminal benefits and pension which would give him some succour in his old age. It is expected of an employer to take expeditious steps to ensure that the terminal benefits and pension due to its employees, are released in time, unless there arejustifiable reasons to withhold the same. In the present case, however, it is the respondent's own case that some objections were raised in the report pertaining to the Special Audit conducted in 2
An employer is obligated to expedite the release of an employee's terminal benefits and pension unless there are valid reasons for withholding them, and departmental proceedings cannot be initiated a....
Terminal benefits cannot be withheld solely due to pending criminal proceedings without judicial findings against the employee, affirming employee rights against arbitrary actions.
An employer cannot withhold terminal benefits from a retired employee without just cause, particularly if no disciplinary action is taken after a prolonged period.
Rule 69 of the CCS (Pension) Rules 1972 does not apply when no chargesheet was filed against the government servant at the time of retirement, and no judicial proceedings were pending.
Pension is recognized as property under Article 300-A of the Constitution, and retrospective policy changes cannot deny superannuation benefits.
Employees are entitled to timely terminal benefits upon retirement, and delays warrant interest payments to uphold their dignity.
Disciplinary proceedings must be initiated before retirement to continue post-retirement; unilateral alteration of service records without notice violates natural justice.
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