Case Note & Summary
The appellant, Dr. Hira Lal, was a Touring Veterinary Officer in Bihar who was implicated in the Fodder Scam (RC Case No.48 A/1996) and placed under suspension on 31.05.2002. He remained under suspension until his superannuation on 31.03.2008. Upon retirement, the State Government sanctioned only 90% provisional pension and withheld 10% pension, full gratuity, leave encashment, and GPF due to pending criminal proceedings, relying on Circulars dated 22.08.1974 and 31.10.1974, and Government Resolution dated 31.07.1980. The appellant challenged this before the Patna High Court, arguing that Rule 43(b) of the Bihar Pension Rules, 1950 does not permit withholding of pension or gratuity during pendency of proceedings, as it requires a finding of guilt. The High Court dismissed the writ petition and the LPA, holding that the criminal proceedings were deemed continuing and the State's action was justified. The Supreme Court allowed the appeal, holding that Rule 43(b) clearly requires a finding of guilt in departmental or judicial proceedings before pension or gratuity can be withheld. The executive instructions cannot override the statutory rule. The Court directed the State to pay the withheld 10% pension and full gratuity within three months, with interest at 6% per annum from the date of retirement until payment.
Headnote
A) Service Law - Pension - Withholding of Pension - Rule 43(b) of Bihar Pension Rules, 1950 - The State Government is empowered to withhold or withdraw pension only if the pensioner is found guilty of grave misconduct in departmental or judicial proceedings, or has caused pecuniary loss. Pending proceedings do not attract this rule. (Paras 1, 11-13) B) Service Law - Gratuity - Withholding of Gratuity - Rule 43(b) read with Rule 27 of Bihar Pension Rules, 1950 - Gratuity is included in the definition of pension. Withholding of gratuity during pendency of proceedings is not permissible under Rule 43(b) as it requires a finding of guilt. (Paras 11-13) C) Service Law - Executive Instructions - Circulars and Resolutions - Circulars dated 22.08.1974 and 31.10.1974, and Government Resolution dated 31.07.1980 - These executive instructions cannot override the statutory provisions of Rule 43(b) of Bihar Pension Rules, 1950. They are ultra vires the statutory rules and cannot be enforced to withhold pension or gratuity during pendency of proceedings. (Paras 12-14) D) Constitutional Law - Right to Property - Article 300A of the Constitution - Pension is a right and property, and its deprivation without authority of law is impermissible. The executive instructions do not have the force of law and cannot take away the right to pension. (Paras 5, 14)
Issue of Consideration
Whether the State of Bihar was justified in withholding 10% pension and full gratuity of the Appellant under Circulars dated 22.08.1974 and 31.10.1974, and Government Resolution dated 31.07.1980, on the ground of pending criminal proceedings?
Final Decision
Appeal allowed. Impugned judgments of Patna High Court set aside. State of Bihar directed to pay the withheld 10% pension and full gratuity to the appellant within three months from the date of judgment, with interest at 6% per annum from the date of retirement (31.03.2008) until payment.
Law Points
- Pension is a right
- not a bounty
- withholding of pension and gratuity during pendency of proceedings is impermissible under Rule 43(b) of Bihar Pension Rules
- 1950
- executive instructions cannot override statutory rules
- right to pension is protected under Article 300A of the Constitution.
