Case Note & Summary
The dispute arose from an appeal by the State of U.P. against a judgment of the Allahabad High Court, which had partly allowed a writ petition concerning the withholding of the respondent's pension. The respondent, a doctor employed by the Employees State Insurance Corporation, faced departmental proceedings due to allegations of illegal appointments and unjustified expenditures. Following these proceedings, 75% of his pension was withheld by an order dated 18.1.1995, after his retirement. The Supreme Court examined the nature of the charges and noted that other doctors faced similar allegations but received lesser punishments. The court concluded that the withholding of 75% of the pension was excessive and modified the order to allow only a 25% reduction. It directed the state to calculate the pensionary dues based on this modification and to pay the difference within three months. The court emphasized the need for proportionality in disciplinary actions.
Headnote
A) Administrative Law - Pensionary Benefits - Excessive Withholding of Pension - Employees State Insurance Corporation Act, 1948 - The court found that the withholding of 75% of the respondent's pension was excessive considering the nature of the charges and the findings of the Inquiry Officer. The court modified the order to allow only a 25% reduction in pension, directing the state to calculate and pay the difference in pensionary dues accordingly. Held that the punishment must be proportionate to the findings (Paras 1-3).
Issue of Consideration
Whether the withholding of 75% of the respondent's pension was excessive given the circumstances of the case.
Final Decision
The Supreme Court partly allowed the appeal, modifying the order to reduce the withholding of pension to 25% and directing the state to calculate and pay the difference in pensionary dues within three months.
Law Points
- Pensionary benefits
- Disciplinary proceedings
- Excessive punishment
- Modification of order


