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2020 Supreme(Jhk) 832

IN THE HIGH COURT OF JHARKHAND AT RANCHI
RAVI RANJAN, SUJIT NARAYAN PRASAD, JJ.
Life Insurance Corporation a body corporate established under Life Insurance Corporation of India Act, 1956 - Appellant
Versus
Ramesh Chandra Seth, son of: Jagneshwar Seth - Respondent
L.P.A. No.705, 706, 710 of 2018
Decided On : 05-11-2020

Subject

Pension and Gratuity - Payment During Departmental Proceedings

Act Referred

CONSTITUTION OF INDIA : Art.226
INDIAN PENAL CODE : S.420, S.467, S.468, S.120(b)
LIFE INSURANCE CORPORATION OF INDIA EMPLOYEES PENSION RULES : R.46(2), R.43(b), R.42, R.43, R.46(1)

Headnote

Life Insurance Corporation of India Act, 1956 – Section 48 - Indian Penal Code, 1860 - Sections 420, 467, 468 and 120B - Constitution of India, 1950 - Article 226 - LIC Employee Pension Rule, 1995 - Rule 46(2), 42, 43, 46(1)(2) and 43(b) - Payment of Gratuity Act, 1972 - Section 4 - Official Secrets Act, 1923 - Section 5 - Post Retiral Benefit - Payment of Pension - Whether State Government has got power to withhold pension even in case of pendency of departmental or judicial proceeding - Whether permanently or for a specified period, if pensioner is convicted of a serious crime or is found guilty of grave misconduct – Held, As part of order directing payment of other post retiral benefits is concerned, since gratuity includes post retiral benefits, therefore, learned Single Judge since has directed for making payment of gratuity but said part of order is also in teeth of sub-rule (2) of Rule 46 which provides that in case of pendency of departmental or judicial proceeding amount of gratuity shall not be released which shall only be released subject to decision of proceedings - Court, for purpose of applicability of this policy decision have examined memorandum of charge wherefrom it is evident that there is no charge pertaining to any financial loss to Corporation rather charge pertains to genuineness of caste certificates, therefore, in absence of any intent of financial loss to Corporation, said communication will not come in way of disbursement of leave encashment in favour of writ petitioners - In that view of matter, this Court deems it fit and proper that leave encashment of writ petitioners cannot be withheld in case of pendency of departmental proceeding, accordingly, this Court directs appellant-Corporation to disburse leave encashment in favour of writ petitioners within a period of two months from date of receipt/production of copy of order, which shall be presented by writ petitioners within three weeks from date of its receipt - Appeals disposed of.

Advocates:
Advocate Appeared:
For the Appellants :Mr. Sachin Kumar, Advocate
For the Respondents:Mr. Rohitashya Roy @ Rohit Roy, Advocate

JUDGMENT :

1. The matter has been heard through video conferencing with the consent of the learned counsel for the parties. They have no complaint about any audio and visual quality.

2. All these appeals since involve similar issues, as such, have been directed to be listed together for their analogous hearing. In pursuance thereto, all these matters have been heard together and are being disposed of by this common order/judgment.

3. These appeal are under Clause 10 of the Letter Patent directed against the order/judgment dated 25.08.2018 passed in W.P.(S) No.192 of 2016, W.P.(S) No.138 of 2016 and W.P.(S) No.1283 of 2016 wherein charge memos dated 21.12.2015 [L.P.A. No.705 of 2018 and L.P.A. No.706 of 2018] and 15.02.2016 [L.P.A. No.710 of 2018] have been issued in pursuance to a departmental proceeding for the allegation that the writ petitioners have failed to prove the genuineness of the caste certificates produced by them for securing appointment to the post of typist and by the aforesaid act they have failed to maintain absolute integrity and devotion and failed to serve the corporation honestly and faithfully.

4. The learned Single Judge disposed of all the three writ petitions (W.P.(S) No.192 of 2016, W.P.(S) No.138 of 2016 and W.P.(S) No.1283 of 2016) whereby and whereunder the writ Court came to a finding that there cannot be any interference in the charge memos, however, with a view to give a chance to the writ petitioners to produce the caste certificates, it was ordered that final order in the departmental proceeding pursuant to the charge memos dated 21.12.2015 [L.P.A. No.705 of 2018 and L.P.A. No.706 of 2018] and 15.02.2016 [L.P.A. No.710 of 2018] shall not be passed till 29.10.2018, awaiting production of the caste certificates by the writ petitioners, however, if the writ petitioners failed to produce the fresh caste certificates by that time for a just excuse, the departmental authority, after granting further opportunity to the writ petitioners, shall be at liberty to proceed in the matter, in accordance with law.

So far as the disbursement of the pension and other post retiral benefit are concerned, it was directed to make payment of pension and other post retiral benefit to the writ petitioners.

5. The instant appeals have been preferred by the Life Insurance Corporation, mainly on the ground that as per the applicable pension rule of the Corporation, the full and final pension and gratuity cannot be disbursed, however, in pursuance to the applicable pension rule, the provisional pension is being paid.

6. So far as it relates to payment of full and final pension and other post retiral benefit are concerned, the same are not sustainable in the eye of law being contrary to the applicable pension rule, i.e., Life Insurance Corporation of India (Staff) Regulations, 1960 and as per the applicable pension rule formulated by the Corporation, the full and final pension as also the gratuity cannot be paid during pendency of proceeding either departmental or judicial, hence, that part of the order needs to be quashed and set aside.

7. We, before proceeding to appreciate the argument advanced on behalf of the learned counsel for the appellants as indicated hereinabove, deem it fit and proper to refer certain facts of the case.

The writ petitioners, who claim to be under the reserved category have made applications for consideration of their appointment in Life Insurance Corporation of India by showing themselves the member of the reserved category in support of which caste certificates were enclosed with the application form. The writ petitioners were declared successful in the process of selection and accordingly, they were appointed in service, subsequently, their services were confirmed on 11.11.1981 w.e.f. 01.10.1981 [L.P.A. No.705 of 2018], 12.04.1982 w.e.f. 26.03.1982 [L.P.A. No.706 of 2018] and 12.04.1982 w.e.f. 26.03.1982 [L.P.A. No.710 of 2018] respectively. The writ petitioners superannuated from service w.e.f. 31.1

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