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2019 Supreme(Jhk) 1991

IN THE HIGH COURT OF JHARKHAND AT RANCHI
Aparesh Kumar Singh, Kailash Prasad Deo, JJ.
Life Insurance Corporation represented through its Manager (Legal and Housing Property Dept.), Jamshedpur, East Singhbhum & ors. - Appellants
Vs.
K. Prabhakar Rao - Respondent
LP.A. No. 706 of 2018
Decided On : 14-11-2019

Subject

Employment Law - Pension and Gratuity

Act Referred

LIFE INSURANCE CORPORATION OF INDIA EMPLOYEES PENSION RULES : R.46(1), R.46(2), R.43, R.48, R.46, R.48(2)
OFFICIAL SECRETS ACT : S.5

Headnote

Official Secrets Act, 1923 - Section 5 - Life Insurance - An employee who has retired on attaining age of superannuation or otherwise and against whom any departmental or judicial proceedings are instituted or where departmental proceedings are continued, a provisional pension, equal to maximum pension which would have been admissible to him, would be allowed subject to adjustment against final retirement benefits sanctioned to him, upon conclusion of proceedings but no recovery shall be made where pension finally sanctioned is less than provisional pension or pension is reduced or withheld etc, either permanently or for a specified period - In such cases gratuity shall not be paid to such an employee until conclusion of proceedings against him - Gratuity shall be paid to him on conclusion of proceedings subject to decision of proceedings - Any recoveries to be made from an employee shall be adjusted against amount of gratuity payable –Held, Bare perusal of aforesaid rules shows that pending departmental inquiry, provisional pension is payable - Therefore, appellant Corporation is required to take a decision thereupon and make admissible payment of provisional pension to employee - Let an affidavit on this be filed by appellant when matter is taken up next after service of notice - Issue notice on sole respondent in limitation matter being, stay matter being as also on main memo of appeal under ordinary process as well as under registered cover with a/d for which requisites etc - must be filed within two weeks, failing which, this appeal shall stand rejected without further reference to Bench – Appeal Disposed of.

Advocates Appeared:
For the Appellant : M/s Sachin Kumar, Ravi Prakash & Surabhi, Advs.

JUDGMENT :

Learned counsel for the appellant Corporation submits that under Chapter IX General Conditions of the Life Insurance Corporation of India (Employees) Pension Rules, 1995, employer can withhold gratuity and final pension and disciplinary proceeding can continue after superannuation. Learned Single Judge has failed to take into account the rule position despite specific statement made to that effect in the counter affidavit at para 14 in the writ petition. Learned Single Judge has however refused to interfere in the charge-sheet issued against the writ petitioner having procured employment on the basis of false caste certificate.

2. Relevant provisions of Chapter IX of the Life Insurance Corporation of India (Employees) Pension Rules, 1995 are quoted hereunder:

GENERAL CONDITIONS

“42. Pension subject to future good conduct - Future good conduct shall be an implied condition of every grant of pension and its continuance under these rules.

43. Withholding or withdrawal of Pension - The Competent Authority may, by order in writing, withhold or withdraw a pension or a part thereof, whether permanently or for a specified period, if the pensioner is convicted of a serious crime or is found guilty of grave misconduct: Provided that where a part of pension is withheld or withdrawn, the amount of such pension shall not be reduced below the minimum pension per mensem payable under these rules.

44. Conviction by Court - Where a pensioner is convicted of a serious crime by a Court of Law, action shall be taken in the light of the judgement of the court relating to such conviction.

45. Pensioner guilty of grave misconduct - In a case not falling under rule 44 if the Competent Authority considers that the pensioner is prima facie guilty of grave misconduct, it shall, before passing an order, follow the procedure specified in regulation 39 of the Staff Regulations.

46. Provisional pension

(1) An employee who has retired on attaining the age of superannuation or otherwise and against whom any departmental or judicial proceedings are instituted or where departmental proceedings are continued, a provisional pension, equal to the maximum pension which would have been admissible to him, would be allowed subject to adjustment against final retirement benefits sanctioned to him, upon conclusion of the proceedings but no recovery shall be made where the pension finally sanctioned is less than the provisional pension or the pension is reduced or withheld etc, either permanently or for a specified period.

(2) In such cases the gratuity shall not be paid to such an employee until the conclusion of the proceedings against him. The gratuity shall be paid to him on conclusion of the proceedings subject to the decision of the proceedings. Any recoveries to be made from an employee shall be adjusted against the amount of gratuity payable.

Explanation - In this chapter

(a) the expression ‘serious crime’ includes a crime involving an offence under the Official Secrets Act, 1923 (19 of 1923);

(b) the expression “grave misconduct” includes the communication or disclosure of any secret official code or password or any sketch, plan, model, article, note, document or information, such as is mentioned in section 5 of the Official Secrets Act, 1923 (19 of 1923) (which was obtained while holding an office in the Corporation) so as to prejudicially affect the interests of the general public or the security of the State.

47. Commutation of pension during departmental or judicial proceedings - An employee against whom departmental or judicial proceedings have been instituted before the date of his retirement or a person against whom such proceedings are instituted after the date of his retirement, shall not be eligible to commute a fraction of his provisional pension, or pension, as the case may be, authorised under these rules, during the pendency of such proceedings.

48. Recovery of Pecuniary loss caused to the Corporation

(1) The Competent Authority may withhold or withdraw

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