Case Note & Summary
The petitioner, a retired government servant, filed Special Civil Application No. 14326 of 2017 challenging an order dated 12.07.2017 that imposed a penalty of 100% pension cut. During the pendency of the petition, the petitioner was acquitted by the 5th Additional Sessions Court, Ahmedabad (Rural) in ACB Case No. 5 of 2010 on 28.08.2025. The petitioner brought this development to the court's notice along with a letter dated 30.01.2017 from the Gujarat Public Service Commission and a Circular dated 19.04.2004 issued by the General Administrative Department of the State, both of which mandated review of the penalty order in light of the acquittal. On 20.01.2026, the High Court directed the respondent to review the penalty by 27.02.2026. Complying with the direction, the respondent on 05.03.2026 substituted the earlier punishment with a fresh penalty of Rs.5,000/- monthly pension cut for five years. Thereafter, the petitioner sought release of the remaining pension arrears after giving effect to the reduced penalty and reserved liberty to challenge the new penalty order. The respondent agreed to calculate and pay the arrears but requested reasonable time. The core issue before the court was whether to direct payment of arrears and prescribe a timeline, and whether interest should be awarded on delayed payment. The court noted that the respondent had itself substituted the penalty, making the rest of the pension amount due. It directed the respondent to calculate the differential amount and pay all arrears of pensionary benefits after deducting the penalty amount to the petitioner on or before 15th May, 2026. In case of failure, the petitioner would be entitled to receive the amount with 6% interest per annum from 16th May, 2026 until realization. The court also granted liberty to the petitioner to challenge the fresh penalty order dated 05.03.2026 in accordance with law. The petition was partly allowed, rule made absolute to that extent, and the connected civil application disposed of.
Headnote
A) Service Law - Pension - Review of Penalty after Acquittal - Gujarat Government Circulars and GPSC Communication - The petitioner, a retired government servant, challenged the order of 100% pension cut; during pendency, the petitioner was acquitted in the ACB case. The Court directed the respondent to review the penalty in light of acquittal and circulars. The respondent substituted the penalty with Rs.5,000/- monthly cut for five years. The Court directed payment of pension arrears after adjusting the penalty, with interest at 6% per annum if delayed beyond 15.05.2026, and granted liberty to challenge the fresh penalty order. (Paras 2-8)
Issue of Consideration
Whether, upon substitution of penalty by the respondent after acquittal, the petitioner is entitled to arrears of pension with interest for delay
Final Decision
Petition partly allowed. Respondent directed to calculate and pay all arrears of pensionary benefits after deducting penalty amount to petitioner on or before 15.05.2026, failing which petitioner entitled to 6% interest per annum from 16.05.2026 till realization. Liberty granted to petitioner to challenge fresh penalty order dated 05.03.2026 in accordance with law.
Law Points
- acquittal in criminal case necessitates review of departmental penalty
- circulars of General Administrative Department and Gujarat Public Service Commission bind state to review penalty
- pension arrears must be released after adjusting penalty
- interest at 6% per annum on delayed payment
