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2025 Supreme(Online)(CAT) 11233

CENTRAL ADMINISTRATIVE TRIBUNAL
Mr. Varun Sindhu Kul Kaumudi, AM
Mr. G. Balakishan – Appellant
Versus
Union of India – Respondent
ORIGINAL APPLICATION NO.020/00538/2024



Advocates:
For the Appellants/Petitioners: Sri K.Sudhaker Reddy
For the Respondents: Smt. K.Rajitha, Sr. PC for CG

Pension and gratuity cannot be withheld based solely on unresolved personal disputes unless linked to serious misconduct.

Headnote:(A) Administrative Tribunals Act, 1985 - Section 19 - CCS (Pension) Rules, 2021 - Gratuity and pension benefits - The applicant challenged the withholding of gratuity and pensions by the respondents citing ongoing domestic violence proceedings, claiming entitlement upon retirement with no conviction for misconduct. The tribunal found no basis for withholding benefits as no departmental proceedings were in place, ordering release of dues owed. (Paras 3, 12)

(B) Judicial Determination - The court emphasized that withholding pension and gratuity is permissible only when serious misconduct is proven against the employee, questioning the legality of decisions based solely on pending civil disputes. (Paras 1-15)

Facts of the case:
The applicant retired as Scientist-G, claiming unpaid gratuity and pensions due to domestic violence allegations against him unrelated to employment. The respondents withheld benefits citing pending judicial proceedings.

Findings of Court:
The authority failed to establish a link between the pending investigation and the applicant’s conduct in service; consequently, the tribunal ruled for the release of all retirement benefits.

Issues: Whether pending judicial matters concerning personal disputes justify withholding of pension and gratuity against an employee lacking misconduct charges.

Ratio Decidendi: The tribunal concluded that mere pendency of a civil case cannot serve as grounds to deny pension benefits, reaffirming the non-connection of personal allegations to official duties.

Result: The O.A. is allowed, directing the release of withheld gratuity and pension benefits.

Table of Content
1. challenging denial of retirement benefits due to personal disputes. (Para 1 , 2 , 4 , 5)
2. clarification of conditions for withholding gratuity under service rules. (Para 6 , 7 , 10)
3. establishing entitlement to benefits without misconduct. (Para 12 , 13)

ORDER

PER: HON’BLE MR. VARUN SINDHU KUL KAUMUDI, ADMINISTRATIVE MEMBER

1. The present Original Application has been filed by the applicant under Section 19 of the Administrative Tribunals Act, 1985 , seeking the following relief:

i. Set aside the impugned order Lr.No.DOP/07/73100/M/01 /DRDS-II, dated: 22 May 2024 issued by the 1st respondent as arbitrary, illegal and violation of the applicant’s fundamental rights guaranteed under Article 14 an 16 of the Constitution of India and against the law laid down by the above judicial pronouncements, and

ii. Consequently direct the respondents 1 & 2 herein to release the Gratuity and Full Pension and Commutation of Pension Etc. of the applicant with interest and pass such other and further order or orders as this Hon’ble Tribunal may deem fit and proper in the circumstances of the case.

2. The facts of the case, in a nutshell, as submitted by the applicant, are as follows:

i. The applicant had joined as Scientist-C, in the office of the Director, Research Centre Imarat (RCI), Ministry of Defence, Hyderabad/ Respondent No.2. Subsequently, he was promoted as Scientist-G and retired from service on 30.04.2023 on attaining the age of superannuation.

ii. It is contended that though the applicant is entitled to release of all the retirement benefits, such as Pension, Gratuity, Commutation of Pension, etc., on superannuation, till date, he is being paid only the provisional pension and even commutation has not been allowed by the 2nd Respondent. The applicant had approached the 2nd Respondent and requested for release of all the retirement benefits, including Gratuity, but the same is not released yet.

iii. It is further submitted that, when the applicant approached the 2nd Respondent, i.e., the Director, RCI, Hyderabad, he addressed letter No.RCI/ADM/014/PENS/01-2023/116, dt.06.07.2023, to the 1st Respondent/ Dy.Director (Pers/DRDS-II), DRDO, and, in response to the above letter, the 1st Respondent, vide their Lr.No.DOP/07/73100/M/01//DRDS-II, dt.13.07.2023, addressed the 2nd Respondent, directing him to grant provisional pension to the applicant, in terms of Rule 63(5) (a) of the CCS (Pension) Rules, 2021.

iv. Rule 63(5) (a) of the CCS (Pension) Rules, 2021, reads as follows:

“63 (5) (a): In case, any departmental or judicial proceedings are pending against the Government servant, a provisional pension as provided in sub- rule (5) of rule 8 shall be authorised by the Accounts Officer and no gratuity shall be paid to the Government servant until the conclusion of the departmental or judicial proceedings and issue of final orders thereon and after the conclusion of departmental or judicial proceedings and issue of final orders thereon, the Head of Office shall forward the copy of final orders passed by the competent authority along with the details in Form

7-A, not later than thirty days from the date of issue of the said orders.” v. According to the applicant, no disciplinary case is pending against him in relation to any irregularities committed while discharging duties in the department. Some cases in regard to family disputes, such as Divorce and Maintenance and a case under the Domestic Violence Act are filed by his wife which are pending against the applicant. The impugned order, withholding gratuity and not granting full pension to the applicant on the ground of pendency of criminal case is not sustainable for the reason that gratuity, as well as normal/full pension, can be withheld only when an employee is guilty of grave misconduct or convicted of any ‘serious offence’. Only if the criminal charge levelled against the applicant falls within the ambit of ‘serious crime’, the authority can withhold the retirement benefits.

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