IMPORTANT POINT
Pensionary benefits cannot be withheld post-retirement for judicial proceedings unrelated to Government affairs, as pension is a property right protected by law.

JUDGMENT :

A.Muhamed Mustaque, J.

The point that arises for consideration in this case is whether a Government servant can be denied interest on the delayed payment of pensionary benefits when a vigilance case is registered against him regarding affairs unrelated to his service in the Government.

2. The respondent retired from the police service as a Sub Inspector on 31/07/2017. He was an office bearer of the Kerala Police Association and its official magazine, Kaval Kairali. The Kerala Police Association was formed based on the permission granted by the Government in the year 1979. It is neither a State agency nor does the Government have any decisive role in its affairs. Based on a complaint made by the newly elected office bearers, an FIR was registered on 09/03/2016 by the Deputy Superintendent of Police, Vigilance and Anti-Corruption Bureau, Thiruvananthapuram, against the respondent. The allegations in the FIR were in regard to the misappropriation of the funds of the Association. A final report dated 09/01/2020 was submitted before the Vigilance Court. In the report, it was stated that the allegations are unsubstantiated. It was also stated that the Association is an independent body and does not receive any financial assistance from the Police Department or the Government. Furthermore, it was asserted that the office bearers of the Association and Kaval Kairali would not come under the purview of the Prevention of Corruption Act, 1958. The final report was accepted by the Enquiry Commissioner and Special Judge, Thiruvananthapuram and an order was passed on 12/06/2020 closing all the further proceedings in the above case. Subsequently, the Accountant General sanctioned the respondent’s pensionary benefits on 01/12/2020.

3. Since the respondent was not paid interest on the pension withheld, he approached the Tribunal. The Tribunal ordered payment of interest at the rate of 7% from 01/01/2018 till the date of payment of pensionary benefits. This order is challenged by the State before this Court in this Original Petition.

4. Heard the learned Government Pleader, Shri Sunil Kumar Kuriakose, and the learned counsel for the respondent, Shri Raju Sebastian.

5. The learned Government Pleader submitted that since there was a criminal case registered by the Special Investigation Unit-I, Vigilance and Anti-Corruption Bureau, Thiruvananthapuram, the Government was justified in not releasing the pensionary benefits during the period of the vigilance case. It was further submitted that under Rules 3 and 3A of Part III of the Kerala Service Rules , the Government is entitled to recover the loss suffered from the pensionary benefits and therefore, the Government is justified in withholding the pensionary benefits till the conclusion of the vigilance case. The learned Government Pleader relied on the judgment of the Apex Court in Secretary, Local Self Government Department and Others v. K. Chandran [2022 (2) KHC 523] and Chief General Manager, Gujarat Telecom Circle, Bharat Sanchar Nigam Limited v. Manilal Patel and Another , [(2019) 14 SCC 232].

6. On the contrary, the learned counsel for the respondent would contend that the Government withheld the pensionary benefits for no reason and the cases relied on by the learned Government Pleader pertain to Government affairs. The Police Association is a private entity and cannot be considered a Government agency; therefore, its office bearers are not public servants. It was submitted that arbitrary withholding of pension creates a corresponding right for the Government servant to demand interest on the delayed pensionary benefits.

7. Under Rule 3 of Part III KSR, the Government has the authority to withhold or withdraw a pension, either permanently or for a specified period, if it determines that a pecuniary loss has been sustained due to the pensioner’s grave misconduct or negligence established in departmental or judicial proceedings. Further, Rule 3A of Part III KSR allows the Government to gra