SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

2025 Supreme(Mad) 3638

IN THE HIGH COURT OF JUDICATURE AT MADRAS
N.MALA, J.
D.Sundara Sekaran - Appellant 
Versus 
General Manager Personnel & Administration
W.P.No.9013 of 2022
Decided on : 06-02-2025


Advocates:
Advocate Appeared:
For the Appellant : Mr.B.S.Sundaramoorthi
For the Respondents: Ms.N.Varsha for M/s.Aiyar and Dolia

Pension is recognized as property under Article 300-A of the Constitution, and retrospective policy changes cannot deny superannuation benefits.

Headnote:(A) Constitution of India - Article 300-A - Prevention of Corruption Act - Sections 7, 12, 13(2), 13(1)(d) - Denial of superannuation benefits due to pending criminal proceedings - The petitioner retired as General Manager and sought benefits post-retirement, which were denied based on an amended policy. The court found that the amended policy could not operate retrospectively and that pension is property under Article 300-A. (Paras 5, 9, 10, 12)

(B) Policy Amendments - The court ruled that executive orders affecting constitutional rights cannot have retrospective effect. (Paras 9, 10)

Facts of the case:
The petitioner retired on 31.10.2014, but his benefits were withheld due to ongoing CBI investigations and a policy change made in 2020. The petitioner was found not guilty in a departmental inquiry, yet the respondents imposed a penalty of reduced increments.

Findings of Court:
The court held that the denial of benefits was unjustified and ordered the payment of superannuation benefits with interest.

Issues: Whether the respondents were justified in denying benefits due to a policy change after the petitioner's retirement.

Ratio Decidendi: The court emphasized that pension is a property right and cannot be denied based on retrospective policy changes.

Result: Writ Petition allowed.

ORDER :

N.MALA, J.

The writ petition has been instituted to direct the respondents to pay the writ petitioner's superannuation benefits, including LIC pension, EL payment, gratuity, and medical reimbursement, from the date of his retirement. Additionally, the petitioner seeks a consequential direction to dispose of the e-mail representation dated 18.03.2021.

2. The writ petitioner retired from service as General Manager - Plant at Madras Fertilizers Limited. on 31.10.2014. While so, the Central Bureau of Investigation, Anti-Corruption Branch, Chennai registered a case in RC MA1 2015 A 0038 on 26.08.2015 against the petitioner and others. The case was based on a source of information alleging the commission of offences punishable under Sections 120-B read with 420 IPC and Sections 7, 12, and 13(2) read with 13(1)(d) of the Prevention of Corruption Act, by the petitioner and others. The petitioner retired on superannuation on 31.10.2014, and despite the respondents' undertaking to settle the petitioner's LIC pension, EL payment, gratuity, and medical reimbursements, the same remained unpaid.

3. Meanwhile, the management of the respondent organization appointed a retired High Court Judge as the Disciplinary Enquiry Officer to investigate allegations regarding the purchase of the four instruments, including an air compressor. The enquiry officer submitted his report, finding the petitioner not guilty of the allegations. However, the respondents were not satisfied with the findings. Consequently, the respondents formed an Internal Enquiry committee to enquire into the matter. The said committee recommended that the petitioner's increments be reduced by four years, which resulted in a reduction of the petitioner's benefits. Due to the stress caused by the said decision, the petitioner did not file any appeal against the order cutting four increments. The petitioner thereafter sent a representation to the 1st respondent on 18.03.2021 seeking payment of his final settlement, including superannuation LIC pension, EL payment, Gratuity and Medical Reimbursement, but the same was rejected on 09.04.2021 by the 1st respondent. The 1st respondent in the aforesaid letter referred to a decision taken in the 311th Board Meeting on 19.06.2020, for rejecting the petitioner's request. Hence, the present petition is filed by the petitioner.

4. The respondent filed a detailed counter, replicating the facts in the petitioner's affidavit. The respondent inter alia, submitted that, pursuant to an amendment in the policy on 21.08.2020, the petitioner's final settlement could be considered only after the conclusion of the CBI case, which was expected to take at least a year. The respondent submitted that the petitioner's claim for immediate final settlement was without any merit, as the outcome of the on going legal proceedings, including the potential conviction, would have a direct bearing on his eligibility for full and final benefits under the revised policy frame work. The respondent therefore, prayed to dismiss the writ petition.

5. The learned counsel for the petitioner submitted that the respondent's amended policy decision taken in the 311th Board Meeting held on 19.06.2020, could not be operated retrospectively as there was a six-year delay between the petitioner's retirement on 31.10.2014, and the respondent's decision. The learned counsel on the merits of the case, submitted that the transaction in question did not involve the petitioner, and the respondent's contention to the contrary were erroneous and untenable. The learned counsel further submitted that, pension is property within the meaning of Article 300-A of the Constitution. The right to property though not a fundamental right was nevertheless a constitutional right and therefore, the respondent could not deny his superannuation benefits citing the pendency of the criminal case instituted by the CBI and on a policy decision taken long after the petitioner's superannuation.

6. Per contra, th

Click Here to Read the rest of this document
1
2
3
4
5
6
7
8
9
10
11
SupremeToday Portrait Ad
supreme today icon
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon Back to top