Court says Pension and Gratuity of Employees Cannot Be Withheld During Ongoing Criminal Proceedings

In a recent ruling, the Jharkhand High Court held that pension and gratuity benefits for employees cannot be withheld while criminal proceedings are ongoing. The case in question was Shanti Devi vs. State of Jharkhand and Others, and the decision was made by Justice S.N. Pathak.

Background of the Case

Shanti Devi was appointed as a Lecturer in BNJ College, Sisai, Gumla, on November 1, 1984. She was later transferred to Ram Lakhan Singh Yadav College, Kokar, Ranchi, on February 16, 2002. After serving as a member of the Jharkhand Public Service Commission (JPSC), she resumed her duties at Ram Lakhan Singh Yadav College on November 7, 2009.

During her service, six criminal cases were lodged against Shanti Devi by the Vigilance Department. She was acquitted in three cases, while the other three cases remain pending. She was released on bail in one of the pending cases. Despite these legal challenges, she continued to perform her duties and received suspension allowances during her periods of suspension.

However, when she was compulsorily retired by Ranchi University on January 25, 2019, under Section 67 of the Jharkhand State Universities Act, 2000, she did not receive her pension, gratuity, leave encashment, and group insurance. Her claims for these benefits were denied by the State (Employer) due to the pending criminal cases against her.

Court’s Findings and Rationale

The Jharkhand High Court reviewed Shanti Devi’s service history and the criminal cases against her. The court noted that no departmental proceedings had ever been initiated against her despite the criminal charges.

The court emphasized that pension and gratuity are not bounties but rights earned by an employee through long and faithful service. It cited the Supreme Court’s ruling in U.P. Raghavendra Acharya vs. State of Karnataka, which held that pension is treated as a deferred salary and is akin to the right of property. The court also referred to the case of Dr. Dudh Nath Pandey vs. State of Jharkhand and Others, where the Supreme Court held that there is no power to withhold gratuity and pension during the pendency of departmental or criminal proceedings.

Based on these precedents, the court held that the employer cannot withhold an employee’s pensionary benefits based solely on the pending criminal cases. It clarified that the mere pendency of criminal cases cannot be a ground for withholding pensionary benefits, as stated in the case of State of Jharkhand and Others vs. Jitendra Kumar Srivastava and Another.

Court’s Decision and Directions

The Jharkhand High Court directed the employer to fix Shanti Devi’s pension, considering the 6th and 7th pay revisions, and to calculate and disburse the amounts due for gratuity, leave encashment, and other benefits within 12 weeks.

In summary, the Jharkhand High Court ruled that pension and gratuity benefits cannot be withheld from employees during ongoing criminal proceedings. The court emphasized that pension is a right earned through long and faithful service and cannot be denied without statutory backing.