JUDGMENT :-

Jagdish Singh Khehar, J.

1. Leave granted.

2. The appellant was inducted into the service of the Punjab National Bank (hereinafter referred to as, the PNB) in the clerical cadre on 19.2.1958. He was successively promoted against the posts of Special Assistant and Accountant with effect from 23.8.1972 and 26.12.1974. He also gained further promotions to the cadres of Manager-B Grade and thereafter, Manager-A Grade with effect from 24.11.1977 and 18.12.1982 respectively. He finally came to be promoted to the post of Chief Manager with effect from 1.10.1986. Whilst holding the post of Chief Manager, the appellant retired from service, on attaining the age of superannuation on 31.10.1996.

3. During 1981-1982, when the appellant was posted as Manager at the Sector 19, Chandigarh Branch of the PNB, he was accused of having entered into a conspiracy with R.L. Vaid, the then Regional Manager of the PNB, Chandigarh, and Dr. A.K. Sinha, IAS, the then Secretary, Department of Town and Country Planning, Haryana and thereby, of fraudulently having sanctioned a loan of Rs.2,70,000/-to Mrs. Rama Sinha (wife of Dr. A.K. Sinha, aforementioned). The said loan was granted to Mrs.Rama Sinha, for construction of a building on a plot in Sector 6, Panchkula. The said building, after its construction, was leased to the PNB, at an allegedly exorbitant rent of Rs.4,985/- per month. The loan amount, was to be adjusted out of the rent account. The PNB was allegedly, not in the need of the said building, because it was already housed in a building in Sector 17, Chandigarh, at a nominal rent of Rs.1,650/- per month. The building rented from Mrs. Rama Sinha was said to have remained unoccupied from 1.5.1982 to 21.1.1987. This factual position, it was alleged, was sufficient to infer, that the PNB was not in need of the building taken on rent from Mrs.Rama Sinha. Based on the aforesaid factual position, it was felt, that the action of the conspirators caused a pecuniary loss of Rs.2,70,000/- to the PNB. It was also sought to be assumed, that the aforesaid loan and lease were favours extended to Dr. A.K. Sinha, IAS, through his wife Mrs. Rama Sinha. Based on the aforesaid allegations, the appellant Y.K. Singla, the aforesaid R.L. Vaid and Dr. A.K. Sinha, IAS, were charged under Section 120B of the Indian Penal Code and Section 5(2) read with Section 13(1)(d) of the Prevention of Corruption Act, 1988.

4. The trial in the above matter was conducted by the Special Judge, CBI Court, Chandigarh. On the conclusion of the trial, the Special Judge, CBI Court, Chandigarh arrived at the conclusion, that the prosecution had failed to produce any evidence on the issue of criminal conspiracy. The trial Court accordingly, acquitted all the three accused of the charges framed against them on 31.10.2009, by holding, that the prosecution had failed to establish the charges beyond a shadow of reasonable doubt.

5. During the subsistence of the aforesaid criminal proceedings, the appellant Y.K. Singla retired from the employment of the PNB, on having attained the age of superannuation, on 31.10.1996. On his retirement, on account of the pendency of the criminal proceedings being conducted against him, gratuity, leave encashment and commutation of permissible portion of pension, were withheld. While withholding the aforesaid monetary benefits, the appellant was informed by the PNB through a communication dated 13.5.2000, that the eventual release of the aforesaid retrial benefits, would depend on the outcome of the pending criminal proceedings.

6. As already noticed above, the appellant was acquitted of the charges framed against him, by the Special Judge, CBI Court, Chandigarh, on 31.10.2009. Based on his aforesaid acquittal, the appellant addressed a letter dated 26.11.2009 to the Executive Director of the PNB seeking release of his gratuity, encashment of privileged leave balance and commutation of permissible portion of pension. Additionally, he claimed interes