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  • Rule 9 of the Civil Services Pension Rules, 1972
  • Rule 43(b) of the Bihar Pension Rules.
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Cites
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Citation Codes
Equivalent Citations
citation codes
Case Number
Judges
Acts
  • Rule 9 of the Civil Services Pension Rules, 1972
  • Rule 43(b) of the Bihar Pension Rules.
Smart Summary

Factual and Procedural Background

The appellant retired from service on 31.10.1996 while holding the post of Travelling Veterinary Officer. He was not paid his full pension, gratuity, and leave encashment dues, which led him to file a writ petition before the Court claiming these payments. A learned Judge held that since the appellant had been chargesheeted in a criminal case involving defalcation of public funds, 10% of his pensionary benefits could be withheld until the conclusion of the trial. The appellant challenged this order by filing the present appeal.

Legal Issues Presented

  1. Whether the State Government is entitled to withhold any part of the appellant’s pension, gratuity, and leave encashment dues pending the conclusion of a criminal trial without any departmental or judicial finding of guilt for misconduct or pecuniary loss caused to the Government.
  2. Whether withholding pensionary benefits without an order passed under Rule 43(b) of the Bihar Pension Rules is legally permissible.

Arguments of the Parties

Appellant's Arguments

  • The State Government’s right to withhold or withdraw pensionary benefits arises only if the pensioner is found guilty of grave misconduct or causing pecuniary loss in departmental or judicial proceedings.
  • No such finding has been recorded against the appellant to date, despite the pending criminal case.
  • The mere pendency of a criminal case is insufficient ground to withhold pension, gratuity, or leave encashment dues.
  • If the appellant is ultimately found guilty in the criminal trial, only then may the question of withholding pension arise in accordance with relevant rules.
  • Relied on the Supreme Court decision in D.V Kapoor v. Union of India (AIR 1990 SC 1923) which held that pension cannot be withheld unless misconduct is proved in departmental or judicial proceedings.
  • The appellant also referred to Rule 9 of the Civil Services Pension Rules, 1972, analogous to Rule 43(b) of the Bihar Pension Rules, and prior decisions of this Court including State of Bihar v. Idris Ansari (1995 AIR SCW 2886) supporting this principle.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
D.V Kapoor v. Union of India, AIR 1990 SC 1923 Principle that pension cannot be withheld unless pensioner is found guilty of misconduct in departmental or judicial proceedings; interpretation of Rule 9 of the Civil Services Pension Rules, 1972 The Court relied on this precedent to hold that without a finding of misconduct, withholding pensionary benefits is impermissible.
State of Bihar v. Idris Ansari, 1995 AIR SCW 2886 Supports the view that pension withholding requires proved misconduct or a valid order under pension rules The Court cited this decision to reinforce the principle that pension cannot be withheld absent a proper order or finding of misconduct.

Court's Reasoning and Analysis

The Court analyzed the legal framework governing pensionary benefits, focusing on Rule 43(b) of the Bihar Pension Rules and analogous provisions in the Civil Services Pension Rules. It emphasized that the State's power to withhold pension arises only upon a formal finding of misconduct or pecuniary loss caused by the pensioner in departmental or judicial proceedings. The pendency of a criminal case alone does not justify withholding pension, gratuity, or leave encashment dues.

Since no order has been passed under Rule 43(b) of the Bihar Pension Rules, the State is not authorized to withhold any part of the appellant’s pension. The Court also noted that gratuity is considered part of the pension and leave encashment dues are akin to salary paid in lieu of unutilized leave, and thus these too cannot be withheld.

Accordingly, the Court found the withholding of 10% of the appellant’s pensionary dues until the criminal trial’s conclusion to be legally unsustainable.

Holding and Implications

The Court allowed the appeal and directed the respondents to pay the appellant the full pension, gratuity, and leave encashment dues within three months from the date of the order.

This decision restores the appellant’s pensionary rights pending any conclusive determination in the criminal trial and is without prejudice to the State’s right to take appropriate action under the rules if misconduct is ultimately established. No new precedent was set; the ruling reaffirms established legal principles regarding pension withholding.

    Bajrang Deo Narain Sinha v. The State Of Bihar & Ors.

    Heard counsel for the parties and with their consent this appeal is being disposed of at the admission stage itself.

    2. The undisputed facts are that the appellant supperannuated from service on 31.10.96 He was then holding the post of Travelling Veterinary Officer. He was not paid his full pension, gratuity and leave encashment dues which compelled him to file a writ petition before this Court claiming payment of full pension, gratuity and leave encashment dues. A learned Judge of this Court has held that since the petitioner has been chargesheeted in a criminal case involving defalcation of public fund, 10% of the pension, gratuity and leave encashment dues may be withheld till conclusion of the trial. The judgement order of the learned Judge has been impugned before us in this appeal.

    3. Counsel for the appellant submits that the State Government has a right of withholding or withdrawing a pension or any part thereof whether permanently or for specified period if the pensioner is found in departmental or judicial proceeding to have been guilty of grave misconduct or to have caused pecuniary loss to the Government by misconduct or negligence during his service. In the instant case, so far no finding has been recorded in a departmental or a judicial proceeding that the appellant is guilty of misconduct or of having caused pecuninary loss to the government by misconduct or negligence. No doubt, a criminal case is pending against the appellant but that does not furnish a sufficient ground for the State not to pay to the appellant his pensionary dues including gratuity and leave encashment dues. If ultimately in the criminal trial, the appellant is found guilty, the question as to whether any part of his pension should be withdrawn may have to be considered in accordance with the relevant rules.

    4. He relied upon a decision of the Supreme Court reported in AIR 1990 Supreme Court 1923 (D.V Kapoor v. Union of India) for the principle that unless the pensioner is found guilty of misconduct in a departmental or a judicial proceeding, any part of his pension cannot be withheld. In that case, the Supreme Court was considering Rule 9 of the Civil Services Pension Rules, 1972 which is in para materia with Rule 43(b) of the Bihar Pension Rules. This Court has also taken the same view in several decisions including the decision in CWJC No. 7315 of 1995 decided on 4.9.1996 and in State of Bihar v. Idris Ansari (1995 AIR SCW 2886). Apart from decisions, the rule is quite clear, and it is only in the case of proved misconduct that a part or whole of pension can be withheld.

    5. It is also not disputed before us that no order has been passed under Rule 43(b) of the Bihar Pension Rules, and therefore, in the absence of such an order, the State is not authorised to withhold a pension or any part of it.

    6. We are, therefore, of the view that the pensionary dues payable to the appellant including gratuity, which is also pension within the meaning of the Bihar Pension Rules, cannot be withheld till such time as an order is passed under Rule 43(b) of the Bihar Pension Rules. Similarly, the leave encashment dues also cannot be withheld since that is paid in lieu of unutilised leave and therefore partakes the character of salary.

    7. In this view of the matter, this appeal is allowed and the respondents are directed to pay to the appellant full pension payable to him in accordance with the Rules as well as gratuity and leave encashment dues within a period of three months from today. This is without prejudice to the right of the State to take any action in accordance with the rules.

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    Bajrang Deo Narain Sinha v. The State Of Bihar & Ors.
    (Aug 26, 1999)