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
- Whether administrative instructions authorised withholding pension and gratuity pending criminal proceedings.
- How the 2012 statutory amendment affected the employee’s entitlement.
Provisions considered
- Rule 27, Bihar Pension Rules, 1950Included gratuity within pension for applying the relevant statutory protection and withholding provision. (¶¶ 11.1, 15)
- Rule 43(c), inserted on 19 July 2012, Bihar Pension Rules, 1950Provided statutory authority for provisional pension of at least ninety percent pending qualifying proceedings, governing withholding from its commencement. (¶¶ 13.2, 13.3, 14, 15)
Held
- Pension is earned property protected by Article 300A, rather than a discretionary bounty. The administrative circulars and resolution lacked statutory force and could not supply authority of law for withholding while proceedings were pending. (¶¶ 12.1, 13.1, 13.4, 13.5, 13.6, 14)
- The employee was entitled to the ten-percent pension withheld from superannuation on 31 March 2008 until 19 July 2012. After Rule 43(c) commenced, the State could withhold ten percent subject to the criminal proceedings’ outcome. (¶¶ 13.2, 13.3, 14)
- Since pension includes gratuity, the State had to release ninety percent of gratuity within twelve weeks; the remaining ten percent depended on the outcome of the pending criminal case. (¶¶ 11.1, 15)
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.