VidhiSangh

Supreme Court of India · 18/02/2020

DR. HIRA LAL versus STATE OF BIHAR & ORS.

[2020] 2 S.C.R. 907 · 2020 INSC 204

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Summary

The Supreme Court held that executive circulars could not justify withholding pension and gratuity while criminal proceedings remained pending. The later insertion of Rule 43(c) in the Bihar Pension Rules changed the statutory position from 19 July 2012. The employee was awarded the withheld ten-percent pension for the earlier period and ninety percent of gratuity. Continued withholding of the remaining portion was subject to the criminal case’s outcome.

Issues

  1. Whether administrative instructions authorised withholding pension and gratuity pending criminal proceedings.
  2. How the 2012 statutory amendment affected the employee’s entitlement.

Provisions considered

Held

Result

Appeals allowed in the stated terms. Pre-amendment withheld pension and ninety percent gratuity payable within twelve weeks; post-amendment ten-percent withholding subject to the criminal proceedings. Pending applications disposed of.

Judgment PDF: Supreme Court of India, [2020] 2 S.C.R. 907.