Bombay High Court Allows Writ Petition for Release of Pensionary Benefits Withheld Without Written Order; Acquitted Pensioner Entitled to Interest Under Rule 129B of Maharashtra Civil Services (Pension) Rules, 1982

High Court: Bombay High Court Bench: AURANGABAD In Favour of Accused
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Case Note & Summary

The petitioner, a retired professor and former Director of Shri Guru Gobind Singhji Institute of Engineering and Technology, Nanded, filed a writ petition under Article 226 of the Constitution seeking release of his pensionary benefits, which had been withheld since his retirement on 31 July 2008. He was appointed in 1984 and the institute became autonomous in 2005. The petitioner was prosecuted under sections 406, 408, 409 and 420 IPC but was acquitted by the Chief Judicial Magistrate, Nanded, on 3 May 2013. The respondents, including the State of Maharashtra and the institute’s governing body, withheld his full pension, paying only provisional pension, claiming that serious financial irregularities had occurred and a proposal for a departmental enquiry was pending. The petitioner argued that no departmental enquiry had been initiated, no written order under Rule 27 of the Maharashtra Civil Services (Pension) Rules, 1982 had been passed, and the criminal case had ended in acquittal, so there was no justification for withholding pension. He also claimed interest at 18% per annum under Rules 129A and 129B. The respondents contended that a preliminary enquiry had found irregularities and a proposal for departmental proceedings was with the Board of Governors, justifying withholding. The court examined Rule 27, noting that sub-rule (1) requires a written order and a finding of grave misconduct in departmental or judicial proceedings before pension can be withheld or withdrawn. Since the petitioner had been acquitted and no departmental enquiry was ever instituted, the withholding was improper. Further, under Rule 27(2)(b)(ii), departmental proceedings could not be initiated more than four years after the events, and over eight years had passed. The court held the withholding unjustified and directed release of all pensionary benefits. It also applied Rule 129B to award interest on delayed pension at GPF rates from 1 February 2009 (six months after retirement) and on gratuity from 1 November 2008 (three months after retirement) until actual payment. Costs were awarded to the petitioner. The writ petition was thus allowed, making the rule absolute.

Headnote

A) Service Law - Pension and Retirement Benefits - Withholding of Pension - Maharashtra Civil Services (Pension) Rules, 1982, Rule 27(1) - The petitioner, a retired professor, had his pensionary benefits withheld without any order in writing, and no departmental enquiry was initiated. The court held that under Rule 27(1), pension can only be withheld by a written order after finding guilt in departmental or judicial proceedings. Since the petitioner was acquitted in the criminal case and no departmental enquiry was pending, the withholding was unjustified. (Paras 7-8)

B) Service Law - Pension and Retirement Benefits - Limitation for Departmental Proceedings - Maharashtra Civil Services (Pension) Rules, 1982, Rule 27(2)(b)(ii) - More than eight years had elapsed since the petitioner's retirement, and no departmental enquiry had been instituted. The court held that Rule 27(2)(b)(ii) prohibits institution of departmental proceedings in respect of events that took place more than four years prior, thus no enquiry could be initiated now. (Para 8)

C) Service Law - Pension and Retirement Benefits - Interest on Delayed Payment - Maharashtra Civil Services (Pension) Rules, 1982, Rule 129B - Pension and gratuity were withheld without justifiable reasons. The court directed payment of interest on the pension amount at GPF rates from six months after retirement, and on gratuity from three months after retirement, till actual payment, in accordance with Rule 129B. (Paras 9-10)

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Issue of Consideration

Whether the respondents were justified in withholding the pensionary benefits of the petitioner without a written order and despite acquittal and no departmental enquiry under the Maharashtra Civil Services (Pension) Rules, 1982; Whether the petitioner is entitled to interest on delayed payment.

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Final Decision

Writ Petition allowed; rule made absolute. Respondent nos. 2 to 4 directed to pay all pensionary benefits admissible under the Maharashtra Civil Services (Pension) Rules, 1982. Interest on pension amount at GPF rates from 01-02-2009 and on gratuity from 01-11-2008 till actual payment. Costs of petition awarded to petitioner.

Law Points

  • Legal points not extracted
  • Pensionary benefits cannot be withheld without a written order under Rule 27 of Maharashtra Civil Services (Pension) Rules
  • 1982
  • Departmental proceedings cannot be instituted more than four years after the event under Rule 27(2)(b)(ii)
  • Acquittal in criminal case and absence of departmental enquiry disentitle government from withholding pension
  • Interest on delayed pension and gratuity payable at GPF rates under Rule 129B.
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Case Details

2026 LawText (BOM) (05) 160

WRIT PETITION NO. 11324 OF 2015

2016-08-02

S.S. Shinde, Sangitrao S. Patil

Citation not available

Mr. Amit A. Mukhedkar for the Petitioner, Mr. V.S. Badakh A.G.P. for respondent nos. 1 and 2, Mr. K.M. Suryawanshi for respondent no. 3, None for respondent no. 4

Shri. Trimbak s/o Ramchandra Sontakke

1. The State of Maharashtra, Through Secretary, Department of Higher & Technical Education, 2. The Director, Technical Education, Maharashtra State, Mumbai, 3. The Director, Shri Guru Gobind Singhji Institute of Engineering and Technology, Vishnupuri, Nanded, 4. The Chairman, Board of Management, Shri Guru Gobind Singhji Institute of Engineering and Technology, Vishnupuri, Nanded

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Nature of Litigation

Writ petition under Article 226 of the Constitution of India seeking directions to respondents to release pensionary benefits.

Remedy Sought

Petitioner sought directions to respondents to release his pensionary benefits with interest at 18% per annum from the date of his retirement i.e. 31st July, 2008 till actual payment.

Filing Reason

Pensionary benefits were withheld by respondents despite the petitioner's retirement, acquittal in criminal case, and absence of any departmental enquiry or written order under Rule 27 of the Pension Rules.

Previous Decisions

Petitioner retired on 31-07-2008; was paid provisional pension; criminal prosecution under IPC sections 406, 408, 409, 420 ended in acquittal on 03-05-2013; no departmental enquiry was initiated; a proposal for departmental enquiry was pending with Board of Governors but no final order passed; respondents withheld full pension.

Issues

Whether the respondents could withhold the pensionary benefits of the petitioner without a written order under Rule 27 of the Maharashtra Civil Services (Pension) Rules, 1982. Whether the petitioner is entitled to interest on delayed payment of pensionary benefits. Whether departmental proceedings could be initiated after a lapse of eight years given the limitation under Rule 27(2)(b)(ii).

Submissions/Arguments

Petitioner argued that no departmental enquiry was initiated, no written order was communicated under Rule 27(3), and he had been acquitted in the criminal case, thus withholding was unjustified; he claimed interest under Rules 129A and 129B and Government Resolution dated 6-5-1991. Respondents argued that serious financial irregularities had been committed, a preliminary enquiry was conducted, and a proposal for departmental enquiry was pending with the Board of Governors, justifying the withholding of pensionary benefits.

Ratio Decidendi

Pensionary benefits cannot be withheld without a written order as required under Rule 27(1) of the Maharashtra Civil Services (Pension) Rules, 1982. An acquittal in criminal proceedings and the absence of any departmental enquiry, coupled with the expiration of the limitation period under Rule 27(2)(b)(ii) (which bars institution of departmental proceedings more than four years after the events), disentitle the government from withholding pension. Delayed payment of pension and gratuity attracts interest under Rule 129B at the rates applicable to General Provident Fund deposits.

Judgment Excerpts

No departmental enquiry has been initiated against him on any ground. the petitioner has been acquitted of the said offences. in view of subclause (ii), Clause (b), SubRule (2) of Rule 27 of the Pension Rules, no departmental proceedings can be instituted against him in respect of the events those took place prior to his retirement. The petitioner is entitled to get full pensionery benefits as admissible under the provisions of the Pension Rules. they are liable to pay interest at the rates applicable to the General Provident Fund deposits on the amount of pension payable to the petitioner, in respect of period beyond six months after his retirement.

Procedural History

Petitioner retired on 31-07-2008 and was paid provisional pension. Criminal prosecution initiated under IPC sections 406, 408, 409, 420; acquitted on 03-05-2013 by Chief Judicial Magistrate, Nanded. Proposal for departmental enquiry submitted to Board of Governors but no enquiry instituted. Writ petition filed in 2015. Affidavit-in-reply filed by respondents. Heard and reserved on 21-07-2016, pronounced on 02-08-2016.

Acts & Sections

  • Maharashtra Civil Services (Pension) Rules, 1982: Rule 27(1), Rule 27(2)(b)(ii), Rule 129A, Rule 129B
  • Constitution of India: Article 226
  • Indian Penal Code, 1860: 406, 408, 409, 420
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High Court Bombay High Court Allows Writ Petition for Release of Pensionary Benefits Withheld Without Written Order; Acquitted Pensioner Entitled to Interest Under Rule 129B of Maharashtra Civil Services (Pension) Rules, 1982
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