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2024 Supreme(Online)(CAT) 10824

CENTRAL ADMINISTRATIVE TRIBUNAL
Om Prakash VII, Judicial Member, Mohan Pyare, Administrative Member
Surendra Singh – Appellant
Versus
Union of India – Respondent
Original Application No. 286 of 2013



Advocates:
For the Appellants/Petitioners: Satyajit Mukherjee, K.K. Tripathi
For the Respondents: Ajay Kumar Rai

Post-retiral benefits including pension and gratuity cannot be withheld merely due to pending criminal proceedings unrelated to official duties, absent disciplinary action, loss to employer, or due process. Suspension deemed revoked on superannuation.

Headnote:(A) Administrative Tribunals Act, 1985 - Section 19 - CCS (Pension) Rules, 1972 - Rule 69 - Payment of Gratuity Act, 1972 - Sections 4(1) & 4(6) - Suspension - Post-retiral benefits - Employee under suspension due to criminal case unrelated to official duties - No disciplinary proceedings or loss to employer - Terminal benefits like pension and gratuity cannot be withheld merely on pendency of criminal proceedings unrelated to employment - Suspension deemed revoked on superannuation - Entitlement to subsistence allowance and full retiral benefits with interest - Gratuity payable unless forfeiture conditions under Section 4(6) satisfied - Provisional pension admissible pending proceedings but no automatic withholding of gratuity without guilt established. (Paras 9-20)

(B) Service Law - Pension - Not bounty but vested right for past services - Cannot be denied without due process under Article 300-A - Withholding requires notice and opportunity - No forfeiture without proof of loss or misconduct in course of employment. (Paras 9-11)

Facts of the case:
Employee appointed as store official faced FIR for cheating unrelated to duties, detained in jail without informing employer, deemed suspended for unauthorized absence, suspension continued post-bail, denied rejoining, retired on superannuation with pending criminal case, retiral benefits withheld citing pendency of judicial proceedings.

Findings of Court:
Criminal proceedings unrelated to official duties - No departmental proceedings or loss to employer - Suspension revoked on retirement - Directs release of all post-retiral benefits including pension, gratuity, subsistence allowance with 6% interest, penal 8% if delayed.

Issues: Whether post-retiral benefits can be withheld solely due to pending criminal case unrelated to official duties; interpretation of Rule 69 CCS (Pension) Rules and Section 4(6) Gratuity Act on withholding gratuity.

Ratio Decidendi: Terminal benefits protected as vested rights, not withholdable merely for pending unrelated criminal proceedings absent disciplinary action, loss to employer, or due process; gratuity forfeiture limited to specified employment-related misconduct under Gratuity Act.

Result: Original Application partly allowed.

Table of Content
1. factual background of suspension and criminal case (Para 1 , 2 , 3 , 4)
2. parties' arguments on withholding retiral benefits (Para 6 , 7)
3. terminal benefits protected without guilt finding (Para 9 , 10 , 11 , 12)
4. gratuity forfeiture requires employment-related loss (Para 13 , 14 , 15 , 16 , 17)
5. pension/gratuity payable absent official misconduct (Para 18 , 19 , 20)

ORDER 

By Justice Om Prakash VII, Member (J)

The present O.A has been filed by the applicant under section 19 of Administrative Tribunal Act, 1985 seeking following reliefs:-

“(a) To allow the application and set aside the order dated 24.12.2012 and order dated 27.02.2013 passed by respondent No.2 & 3 (Annexure No. A-1 and 2) of compilation No.1 and permit the applicant to join his duty as P. No. 861988, OS/Store, SAF, Kanpur.

(a-1) Issue an order or direction to the respondents to grant and pay final pension and arrears thereof to the applicant pursuant to his retirement w.e.f. 31.10.2014.

(a-2) Issue an order or direction to the respondents to pay the last two annual increments, along with the bonus for the last three years immediately preceding his retirement on 31.10.2014.

(a-3) Issue an order or direction to the respondents to pay arrears of enhanced dearness allowance, arrears of salary for the period of suspension from 24.12.2012 till his retirement on 31.10.2014, leave encashment and the gratuity.

(a-4) Issue an order or direction to the respondents to pay the Rs. 45,000/- wrongly deducted towards house rent allowances.

(a-5) Issue an order or direction to the respondents to pay interest @ 10% per annum on the delayed payment under the above heads.

(b) A direction may be given to respondents to treat the suspension period 14.08.2012 till date of reinstatement into leave and he may be paid salary of aforesaid period.

(c) To pass any other direction as this Hon’ble Tribunal may deem fit and proper on the facts and circumstances of the case in the interest of justice.

(d) Award the cost of the application to the applicant”.

2. The brief facts of the case are that the applicant was initially appointed as P. No. 861988, OS/Store, SAF, Kanpur. An FIR was lodged against the applicant in case crime No. 31 of 2012 under sections 420, 467, 471, 504, 506 IPC in Police Station Armapur, District Kanpur Nagar. In the FIR, the allegation was made that the applicant has cheated the complainant and collected Rs. 45 lacs for providing job of Assistant Teacher. Applicant was detained in jail. Since he was sent in jail, therefore, he could not inform the respondents about his detention in jail. Respondents issued show cause notice to the applicant on 08.12.2012 regarding unauthorized absence from duty till 14.08.2012. Reply to the show cause notice was sent by the advocate of applicant on 17.12.2012. Applicant filed Criminal Misc. Bail Application No. 23921 of 2012 before the Hon’ble Allahabad High Court and Hon’ble High Court has granted bail to the applicant. Vide impugned order dated 24.12.2012, respondent No.2 passed an order suspending the applicant from service w.e.f. 14.08.2012 (F/N) until further order. After releasing in jail, applicant moved an application dated 05.02.2013 for resuming on duty. On the consideration of applicant’s representation, respondents have stated in the impugned order dated 27.02.2013 that since applicant has been suspended and it is effective w.e.f. 14.8.2012, his application is not considered. Applicant was retired from service on 31.10.2014 and after retirement, applicant has filed amendment application whereby he sought a direction to the respondents to pay final pension and arrears thereof. He has also sought a direction to the respondents to pay last two annual increments along with bonus as well as enhanced dearness allowance for the last three years with interest. Amendment application was allowed vide order dated 18.10.2016 and necessary amendment was carried out in the OA.

3. Per contra, learned counsel for the respondents fi

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