Pension & Gratuity Cannot Be Withheld Merely Because Of Pendency Of Criminal Cases: Jharkhand HC

The Jharkhand High Court reiterated that pension and gratuity benefits cannot be withheld from an employee during ongoing criminal proceedings.

The Single-Judge Bench of Justice S.N. Pathak  made the observation in the case where the petitioner, Shanti Devi, challenged the state's refusal to grant her pensionary benefits due to pending criminal cases. Shanti Devi, who served as a lecturer and later with the Jharkhand Public Service Commission (JPSC), faced six criminal cases filed by the Vigilance Department.

Despite being acquitted in three cases and released on bail in another, the state had suspended her multiple times during the legal process. She was compulsorily retired by Ranchi University under Section 67 of the Jharkhand State Universities Act, 2000, but her pension, gratuity, leave encashment, and group insurance were withheld, citing the seriousness of the charges against her.

The Court reviewed Shanti Devi's service history, noting that no departmental proceedings were initiated against her despite the criminal charges. "After being released from the Commission, the petitioner was put under suspension and the same also stood revoked. Never any departmental proceeding was initiated against the petitioner," the Court noted. 

Emphasizing that pension and gratuity are rights earned through service, the Court cited precedents establishing these benefits as akin to deferred salary and a constitutionally protected property under Article 300A.

Referring to legal principles established in cases such as U.P. Raghavendra Acharya vs. State of Karnataka and Dr. Dudh Nath Pandey vs. State of Jharkhand and Others, the Single-Judge Bench underscored that the mere pendency of criminal cases does not justify withholding pensionary benefits. The Court reiterated that such actions require explicit statutory authority.

"...a person cannot be deprived of pension without the authority of law, which is a constitutional mandate enshrined in Article 300A of the Constitution of India. It follows that attempts of the State Government to take away a part of pension or gratuity or even leave encashment without any statutory provision and under the umbrage of administrative instruction cannot be countenanced," the Court noted. 

The Court directed the employer to calculate and disburse Shanti Devi's pension, considering the 6th and 7th pay revisions, along with gratuity, leave encashment, and other accrued benefits within 12 weeks. 

"Accordingly, the respondents are directed to fix the pension of the petitioner taking into consideration the 6th and 7th pay revision and thereafter fixing the benefits and pay the amount of gratuity, leave encashment and other benefits for which the petitioner is entitled for, in accordance with law, within a period of 12 weeks from the date of receipt/production of a copy this order," the Court ordered. 

Cause Title: Shanti Devi v. State of Jharkhand & Ors. 

Appearance:-

Petitioner: Advocates Ritu Kumar, Samavesh Bhanj Deo, Shatakshi

Respondent: Advocates Rahul Saboo, Rishab Kaushal, Aprajita Bharadwaj

Click here to read/download the Order