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IN THE HIGH COURT OF DELHI
V. Kameswar Rao, J.
V.K. Malhotra - Appellant
Versus
Union Bank of India - Respondent
W.P.(C) 625 of 2016
Decided On : 05-04-2021




Disciplinary proceedings against retired employees are barred if events occurred over four years prior to charge issuance; pension and gratuity cannot be withheld without proven moral turpitude involving criminal conviction.

Headnote:(A) Service Law - Payment of Gratuity Act, 1972 - Regulation 48(1) of the Pension Regulations - Quashing of charge-sheets and withholding of pension - The petitioner's compulsory retirement relates back to the date of dismissal, hence is entitled to pension, gratuity, and leave encashment. The chargesheet dated May 31, 2013 quashed due to lack of jurisdiction, while the disciplinary authority's order is also set aside and remanded back for fresh consideration. (Paras 18, 20, 27)

(B) Jurisdiction - Writ Petition Maintainability - The Court held jurisdiction exists if any part of the cause of action arises within its territorial limits; hence, the plea of lack of jurisdiction was rejected. (Para 9)

(C) Procedural Fairness - The requirement of issuing a show-cause notice with a note of disagreement before inflicting penalties is highlighted, echoing established guidelines for departmental proceedings. (Paras 5, 27)

Facts of the case:
The petitioner was dismissed and later compulsorily retired; faced withheld pension and benefits due to alleged misconduct without a subsequent inquiry justified by the Bank.

Findings of Court:
The Court found that the chargesheet issued more than four years post-termination was invalid, and the respondent failed to establish grounds for withholding pension, gratuity, or leave encashment.

Issues: Whether the issuance of the chargesheets was valid post-retirement, the jurisdiction of the Court, and the rights to pension, gratuity, and leave encashment.

Ratio Decidendi: The law stipulates disciplinary proceedings initiated prior to retirement can continue afterward; however, charges must relate to the conduct during service and not exceed a four-year limit. Additionally, the requirement of a criminal conviction for moral turpitude must be met to withhold gratuity.

Result: Petition allowed. Charge-sheet dated May 31, 2013 quashed; order of the disciplinary authority set aside; remanded for consideration of the chargesheet dated November 11, 2009.

Table of Content
1. petitioner's prayers to quash orders and grant pension. (Para 1 , 2)
2. argument against the chargesheets and inquiry after retirement. (Para 3 , 4)
3. jurisdiction and maintainability defenses raised by the respondent. (Para 5 , 6)
4. allegations pertaining to moral turpitude and gratuity rights. (Para 7)
5. court's analysis of jurisdiction over case proceedings. (Para 8 , 9)
6. court observations on limitations regarding disciplinary proceedings. (Para 11)
7. analysis of prior judicial precedents on initiating proceedings post-retirement. (Para 12 , 13 , 14 , 15)
8. limitations concerning chargesheets and prior incidents. (Para 16 , 17)
9. quashing of the chargesheet based on established legal principles. (Para 18 , 19)
10. final conclusion regarding orders on pension, gratuity, and leave encashment. (Para 20 , 21 , 22 , 23 , 24 , 25 , 26 , 27 , 28)

JUDGMENT

V. Kameswar Rao, J. (ORAL)--The present petition has been filed by the petitioner with the following prayers:

    "In view of the foregoing submissions, it is most respectfully prayed that this Hon'ble Court may kindly be pleased to:

    (a) issue writ in the nature of certiorari or any other writ(s), order(s) or direction(s) quashing the charge-sheets dated 11.11.2009 and 31.05.2013 as also consequent illegal inquiry and Report dated 5.2.14 and orders dated 06.01.2015 and 28.05.2015 passed by the Respondent Nos. 2 and 3 as also show-cause notice dated 23.10.2015;

    (b) issue writ in the nature of mandamus or any other writ(s), order(s) or direction(s) directing the Respondents to grant full pension as also other retiral benefits including leave encashment and gratuity w.e.f. 12.12.09 with interest;

    (c) cost of this Writ Petition may kindly be also allowed in favour of the Petitioner and against the Respondents since the Petitioner has been suffering due to malafide and illegal actions of the Respondents;

    (d) pass such other or further order(s) as this Hon'ble Court may deem fit and proper on the facts and circumstances of the case and in the interest of justice."

2. The brief facts as noted from the petition are, three chargeheets have been issued to the petitioner, the same being dated November 29, 2008, November 11, 2009 and May 31, 2013.

3. The case of the petitioner and so contended by his Counsel Mr. G.S. Chaturvedi is that the first chargesheet had resulted in an order of dismissal from service vide order dated December 3, 2009 served on the petitioner on December 11, 2009, which is 20 days before his actual superannuation on December 31, 2009. The petitioner appealed against the order of dismissal dated December 3, 2009 vide his appeal dated January 9, 2010 which was accepted by the Appellate Authority and the penalty of dismissal from service was converted into penalty of compulsory retirement vide order dated March 6, 2012. It is contended by Mr. Chaturvedi that the petitioner did not receive pension in the intervening period between December 12, 2009 to March 6, 2012 nor encashment of earned leave and gratuity was paid though, he stood compulsory retired. Mr. Chaturvedi contended that the chargesheets dated November 11, 2009 and May 31, 2013 were decided in terms of common order January 6, 2015, whereby it was decided to withhold permanently pension of the petitioner. He submitted that this order was passed by the Disciplinary Authority by showing disagreement with the findings of inquiry officer where honesty and integrity of the petitioner is not in doubt, was overruled. According to Mr. Chaturvedi, the Disciplinary Authority was required to issue a show-cause notice along with the note of disagreement before inflicting the penalty on the petitioner. In this regard, he has relied upon a Judgment of the Supreme Court in the case of Punjab National Bank v. Kunj Bihari Mishra (1998) 7 SCC 84.

4. Mr. Chaturvedi would attack the two chargesheets and consequent inquiry resulting in the order of withholding of pension permanently by contending that no inquiry

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