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2023 Supreme(Online)(Bom) 25824
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
NAGPUR BENCH : NAGPUR
WRIT PETITION NO. 2539 /2021
Narendra K. Kumbhare,
Aged about 60 yrs. Occ. : Retired,
R/o. F-2, Sai Shiv Apartment, Atharva Colony,
Near Akashwani, Civil Lines, Chandrapur. ----PETITIONER
--VERSUS--
1. The Union of India through its
Secretary Ministry of Personnel,
Public Grievance and Pensions Department
of Personnel and Training, New Delhi.
2. The Chairman-cum-Managing Director,
United India Insurance Co. Ltd.,
HRM Department Head Office 19,
4th Lane Nungambakkam High Road,
Chennai.
3. The General Manger,
United India Insurance Co. Ltd.
Personnel Head Office 19,
4th Lane Nungambakkam High Road,
Chennai.
4. Dy. General Manager,
United India Insurance Co. Ltd.,
HRM Department, Head Office 19,
4th Lane Nungambakkam High Road,
Chennai.
5. The Chief Regional Manager,
United India Insurance Co. Ltd.,
Regional Office, Ambika House,
19 Dharampeth Extn Shankar Nagar Square,
Nagpur 440010. ----RESPONDENTS
Disciplinary proceedings are only formally initiated upon the issuance of a charge-sheet. A mere show cause notice does not constitute the institution of proceedings, and thus cannot serve as a valid legal ground to withhold an employee’s pension and retiral benefits upon superannuation.
Headnote:(A) General Insurance (Employees) Pension Scheme, 1995 - Rule 45 - Withholding of retiral benefits - Provisional pension - Scope and conditions for withholding - Departmental or judicial proceedings must be formally instituted prior to superannuation for withholding of gratuity or pension - Mere issuance of show cause notice does not constitute initiation of disciplinary proceedings. (Paras 6, 7, 13, 14)
(B) Service Law - Disciplinary Proceedings - Initiation of - Issuance of charge-sheet - Legal position - Disciplinary proceedings are deemed initiated only upon the issuance of a charge-sheet to the employee, not by a preliminary show cause notice issued at the time of retirement. (Paras 5, 12, 15)
Facts of the case:
The petitioner, after serving for over three decades, received a show cause notice regarding the non-submission of a social status certificate on the very day of superannuation. Consequently, the employer withheld the petitioner's terminal benefits, including pension and gratuity, citing the pendency of a departmental inquiry initiated by said notice.
Findings of Court:
The court determined that the issuance of a show cause notice on the date of retirement does not qualify as the commencement of disciplinary proceedings. Absent a formal charge-sheet, there is no legal basis to withhold employee retirement-related financial benefits under the applicable pension rules.
Issues: Whether the issuance of a show cause notice on the day of superannuation amounts to the initiation of disciplinary proceedings, thereby justifying the withholding of pensionary and retiral benefits.
Ratio Decidendi: Departmental proceedings are not initiated merely by the issuance of a show cause notice; a formal initiation requires the issuance of a charge-sheet. Unless disciplinary or judicial proceedings are pending at the time of superannuation, the employer has no authority to withhold gratuity or monthly pension payments.
Result: Petition allowed; respondents directed to finalize and release retiral benefits within two months.
JUDGMENT (PER : MRS.VRUSHALI V. JOSHI, J.)
1. Rule. Rule made returnable forthwith. Heard finally with consent of the learned Counsel for the parties.
2. The petitioner has superannuated on 30.06.2021 as Deputy Manager (Scale II). On the very day a notice was issued calling upon him to show cause as to why departmental action should not be initiated against him under the United India Insurance Company (Conduct, Discipline and Appeal) Rules 2014 for not submitting the Caste Validity Certificate. The lapse/omission according to the respondents constitutes misconduct.
3. The petitioner was appointed on 24.04.1985 as Typist. He was promoted from time to time and at the time of his retirement he was on the post of Senior Branch Manager at Branch Office, Chandrapur. On 30.06.2021 when he was superannuated and retired from services, he received the show cause notice on his WhatsApp calling upon the petitioner to explain as to why departmental action should not be initiated against him under the United India Insurance Company (Conduct, Discipline and Appeal) Rules, 2014 (for short, “the Rules, 2014). Further he was warned if satisfactory explanation is not submitted before 15 days from the date of receipt of the said letter failing which appropriate action will be taken by the Company.
4. After rendering service of 36 years, he retired from the service on 30.06.2021. During this tenure, he was never served with any notice or charge memo or any departmental proceeding was initiated against him.
5. The learned Counsel for the petitioner has stated that the show cause notice does not amount to initiation of departmental proceedings and departmental proceedings cannot be initiated four years after cause arises and after retirement. The services of the petitioner are governed by the United India Insurance Company (Conduct, Discipline and Appeal) Rules, 2014. As per these Rules, the officer against whom disciplinary proceedings have been initiated by framing of charge sheet and same is pending and continuing on the date of retirement or superannuation of the employee, the departmental enquiry shall not be deemed to be concluded on exit of the employee from the corporation due to retirement or superannuation and shall continue as if the employee is in service until the proceedings are concluded and the final order is passed in respect thereof. The aforesaid regulation could be invoked only when the disciplinary proceedings have been clearly initiated prior to the petitioner’s retirement or superannuation. The terminologies used therein are of seminal importance only when the disciplinary proceedings have been initiated against an officer of company before he ceased to be in service. The departmental proceedings is a trite law, it is not merely initiated by issuance of show cause notice. It is initiated only when charge sheet is issued.
6. The petitioner having superannuated without institution of any disciplinary proceedings, the Rules, 2014 were not attracted. Thus, the impugned action of the respondents must be held to be illegal and without jurisdiction. The petitioner has retired from United India Insurance Company Limited being a Subsidiary Company of General Insurance Corporation of India on 30.06.2021. The retired employees of the United India Assurance Company Limited are governed by the General Insurance (Employees) Pensions Rules Scheme, 1995 and this, Pension Scheme is applicable to the petitioner. Rule 3(a) read with Rule 29 of General Insurance (Employees) Pension Scheme, 1995 is applicable for the purpose of settlement of retiral dues and also regular monthly pension. Further by virtue of Rule 55 (Residuary Provision) contained in Chapter IX (General Condition) of the said scheme it is provided that the matters relating to pension and other benefits in respect of which no express provision has been made shall be governed by corresponding provisions of Central Civil Service (Pension) Rules, 1972. As per the aforesaid provis
