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2025 Supreme(Ker) 2081

IN THE HIGH COURT OF KERALA AT ERNAKULAM
A.MUHAMED MUSTAQUE, P. KRISHNA KUMAR, JJ.
 
The State Of Kerala - Appellant 
Versus 
Sheela.K.R, W/o Sunil - Respondent 
OP(KAT) No. 23 of 2025
Decided on : 09-04-2025 

Advocates:
Advocate Appeared:
For the Appellant : ADV GOVERNMENT PLEADER SHRI SUNILKUMAR KURIAKOSE
For the Respondent: T.RAJASEKHARAN NAIR, GOPINATHAN NAIR, RESHMI G. NAIR

A government servant is entitled to pensionary benefits upon acquittal, regardless of pending appeals, as acquittal confirms innocence and prohibits arbitrary withholding of pension.

Headnote:(A) Kerala Service Rules - Rule 3 and Rule 3A - Pensionary benefits entitlement - Government servant acquitted of charges prior to retirement entitled to pension despite pending appeal; default pension issuance not justified due to acquittal which reinforces presumption of innocence - Issue of release of pension does not hinge on pending judicial proceedings. (Paras 3-12)

(B) Judicial proceedings definition - Acquittal marks conclusion of immediate trial, appeal does not prolong pension withholding - Government cannot withhold benefits based on appeal when trial has concluded in favor of the accused. (Paras 9-13)

Facts of the case:
Respondent, a retired Chief Engineer, was denied full pensionary benefits based on acquittal during pending appeal of criminal misappropriation case. Tribunal ordered release of benefits, challenged by the State.

Findings of Court:
The court confirmed that acquittal establishes a right to pension, dismissing the government's reliance on the ongoing appeal to deny payment.

Issues: 1) Is a government servant entitled to pensionary benefits post-acquittal with a pending appeal? 2) Does pending appeal affect the pension entitlement as per the Kerala Service Rules?

Ratio Decidendi: Acquittal confirms entitlement to pension irrespective of concurrent appeal proceedings; the government cannot withhold pension based on an appeal which is not part of the original trial proceedings.

Result: Original petition dismissed.

Table of Content
1. final ruling and dismissal of the petition. (Para 1)
2. response to pension entitlement post-acquittal. (Para 2)
3. arguments on pension withholding based on appeal. (Para 3)
4. discussion on rule 3 and rule 3a of ksr. (Para 4 , 5)
5. clarification on the meaning of judicial proceedings. (Para 6 , 7)
6. pension is a property and cannot be denied without valid reasons. (Para 8 , 9)
7. the significance of double presumption following acquittal. (Para 10 , 11)
8. limitations of appealing against acquittal regarding pension rights. (Para 12)
9. the ruling against withholding pension due to pending appeals. (Para 13)

JUDGMENT :

A.Muhamed Mustaque, J.

The point that arises for consideration is whether a Government servant who retired while a criminal case was pending is entitled to pensionary benefits on acquittal, despite the Government having preferred an appeal against such acquittal, and the same is pending before the Court. This point arises in the context of Rule 3 of Part III, KERALA SERVICE RULES (KSR).

Brief facts involved in this case are as follows:

2. The respondent, who was the applicant before the Tribunal, retired from the service of the Water Resources Department on 31/05/2020 as Chief Engineer. The respondent was granted only a provisional pension under Rule 3A(a) of Part III, KSR due to the pendency of criminal proceedings. At the time of retirement, an appeal was pending before the High Court against the judgment, dated 17/10/2018, of the Enquiry Commissioner and Special Judge (Vigilance), Thrissur, acquitting the respondent. The prosecution alleged that the respondent, along with the other accused, misappropriated Rs. 86,558.55/- by committing forgery and making false entries in the ‘M’ book. It was categorically found by the Vigilance Court that the prosecution failed to prove that the respondent, along with the other accused, made false entries in the ‘M’ books. Accordingly, the respondent was acquitted. Since the respondent was not paid pensionary benefits even after her acquittal in the year 2018, she approached the Tribunal seeking the release of gratuity and pensionary benefits due to her. The Tribunal allowed her prayers. The State has come up with this original petition challenging the Tribunal’s order.

3. The learned Government Pleader, pointing out Rules 3 and 3A(a) of Part III, KSR and placing reliance on judgment of the Apex Court in The Secretary, Local Self Government and v. K. Chandran [ 2022 (2) KHC 523 ] argued that since an appeal is pending, which is a continuation of the trial proceedings, the respondent is not entitled for pension. Per contra, the learned counsel for the respondent placed reliance on Chandran’s case (supra) and argued that the respondent has been found innocent, and the presumption of that innocence will continue, and therefore, Rule 3 or 3A of Part III, KSR cannot be relied on to deny the pensionary benefits due to the respondent. It is further submitted by the learned counsel for the respondent that more than 3 years have lapsed since the respondent’s retirement, and no liability certificate has also been issued. Therefore, the respondent is entitled to all pensionary benefits.

4. We shall now advert to the relevant portion of Rule 3 of Part III, KSR.

“3. The Government reserve to themselves the right of withholding or withdrawing a pension or any part of it, whether permanently or for a specified period, and the right of ordering the recovery from a pension of the whole or part of any pecuniary loss caused to government if in a departmental or judicial proceeding, the pensioner is found guilty of grave misconduct or negligence during the period of his service, including service rendered upon re-employment after retirement..”

5. It is also appropriate to refer to the relevant portion of Rule 3A of Part III, KSR.

“3-A.(a) (b) Where any departmental or judicial proceedings is instituted under Rule 3 or where a departmental proceeding is continued under clause (a) of the p

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