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2024 Supreme(Ori) 191

IN THE HIGH COURT OF ORISSA AT CUTTACK
A.K.MOHAPATRA, J.
Prasant Kumar Patnaik – Appellant
Versus
State of Odisha and Another – Respondents
W.P. (C) No. 35746 of 2023
Decided On : 01-03-2024

Advocates Appeared:
For the Appellants : Subir Palit, Venugopal Mohapatra, S. Sahoo, A. Tripathy
For the Respondent: Saswat Das

Pensionary benefits cannot be withheld without due process confirming liability; audit findings do not constitute Government dues under statutory rules.

Headnote:(A) OCS (Pension) Rules, 1992 - Recovery of dues arising from audit report without disciplinary proceedings - The Court held that pensionary benefits cannot be withheld without a concluded disciplinary or judicial proceeding confirming guilt. The Surcharge dues from the audit report do not equate to Government dues. (Paras 15, 25, 30)

(B) Executive instructions cannot contravene statutory provisions - The withholding of pension or gratuity without legal basis is impermissible as established in prior judgments. (Paras 27, 29)

Facts of the case:
The petitioner, a retired Government employee, challenged the withholding of his pension and gratuity due to a surcharge arising from an audit report, despite having no pending disciplinary proceedings at the time of retirement.

Findings of Court:
The Court ruled in favor of the petitioner, affirming his right to benefits and imposing an interest penalty for the delay in payments.

Issues: The key issues were whether the surcharge imposed from the audit could be classified as Government dues and whether the retirement benefits could be withheld without due process.

Ratio Decidendi: The Court emphasized that pension rights are valuable rights and should not be denied without proper disciplinary proceedings; an audit report does not impose liability without a formal process.

Result: The writ petition is allowed, and the petitioner is entitled to receive his benefits with interest. The Opposite Party is directed to pay within two months.

Table of Content
1. petition filed for pension due to retirement. (Para 1 , 2)
2. background of petitioner's service and pending cases. (Para 3 , 4 , 5)
3. petitioner previously requested pension consideration. (Para 6 , 7)
4. legal grounds on withholding pension. (Para 15 , 16 , 19)
5. entitlement to pension despite audit issues. (Para 24 , 25)
6. court orders pension payment with interest. (Para 30 , 31)

JUDGMENT :

A.K. MOHAPATRA, J.

1. The above named Petitioner, who is a retired Government employee, has filed the present writ petition questioning the validity and propriety of order dated 13.10.2023 passed by the Opposite Party No.1 thereby rejecting the representation of the Petitioner dated 18.05.2023 and 03.08.2023 filed with a prayer for sanction and disbursement of final pension, gratuity and unutilized leave salary along with interest @ 18% from the date of retirement of the Petitioner. The Petitioner while praying for quashing of order dated 13.10.2023 under Annexure-8 to the writ petition has also prayed for issuance of a writ of mandamus thereby directing the Opposite Party No.1 to sanction and disburse the final pension and gratuity as is due and admissible to the Petitioner along with interest @ 18%.

2. The present writ petition was filed on 31.10.2023. While taking up this matter for admission and while issuing notice vide order dated 07.11.2023, this Court, vide interim order dated 07.11.2023 passed in I.A. No.17282 of 2023, disposed of the said I.A. by directing the Opposite Party to disburse the unutilized leave salary to the Petitioner along with interest @ 18% as claimed by the Petitioner within a period of six weeks from the date of communication of such order. Therefore, the prayer made in the writ petition with regard to payment of unutilized leave salary no more survives.

3. The factual background leading to filing of the present writ petition by the above named Petitioner, in short, is that the Petitioner initially joined as Assistant Town Planner under the department of Housing and Urban Development, Government of Odisha, in the year 1987 on being duly selected. Thereafter, the Petitioner continued to work under the said department and discharged his duties to the satisfaction of the authorities. While the Petitioner was in service, an F.I.R. bearing Cuttack Vigilance P.S. Case No.84 of 2012 was registered on 28.12.2012 for commission of offence under Section 13 (2) read with 13(1)(b) of the Prevention of Corruption Act, 1988 and Section 420 /120(B) of I.P.C. In the vigilance case, the Petitioner has been implicated as an accused. While the vigilance case was continuing, the Petitioner has retired from service w.e.f. 31.05.2013 on attaining the age of superannuation.

4. The averments made in the writ petition further reveals that on the date of retirement of the Petitioner from service on 31.05.2013, no disciplinary proceeding, as well as any judicial/criminal proceeding were pending against the Petitioner. However, the authorities did not sanction and disburse the financial benefits as well as the pensionary benefits as is due and admissible to the Petitioner on his retirement. Being aggrieved by such conduct of the Opposite Parties, the Petitioner wrote an e-mail on 01.07.2020 to the Opposite Party No.1 with a specific request to sanction his final pension along with gratuity and other retirement benefits.

5. The writ petition further reveals that the F.I.R. in Cuttack Vigilance P.S. Case No.84 of 2012 implicating the present Petitioner as an accused was challenged by the Petitioner before this Court by filing an application under Section 482 of the Cr.P.C. which was registered as CRLMC No.704 of 2019. After hearing the counsels appearing for the parties, a coordinate Bench, vide a detailed judgment dated 13.04.2022 under Annexue-2, to the writ petition allowed the CRLMC application. Accordingly, the F.I.R. in Cuttack Vigilance P.S. Case along with consequential proceeding in VGR P.S. Case No.84 of 2012 pendi

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