The Karnataka High Court has ruled in favor of a 73-year-old retired government employee, directing authorities to release his withheld pension and gratuity. The court found no legal basis for imposing a 100% penalty on his retirement benefits and set aside the disciplinary authority’s order.
Background of the Case
Hanumanth N Karkun, a former employee of the Commissioner of Central Excise, Customs, and Service Tax, had his full pension and gratuity withheld following a disciplinary action. The case dates back to 2011 when Karkun, then serving as a Superintendent in Hubli, was accused of demanding a ₹2,000 bribe for issuing a service tax registration certificate. Based on a complaint, the Central Bureau of Investigation (CBI) filed a chargesheet against him.
Karkun retired on January 31, 2012, but disciplinary proceedings continued even after his retirement. In February 2023, the disciplinary authority imposed a penalty of withholding 100% of his pension and gratuity. However, the trial court had already acquitted Karkun, stating that there was no evidence to prove his guilt beyond a reasonable doubt.
Court’s Observations
Justice M. Nagaprasanna ruled that the decision to withhold Karkun’s entire pension and gratuity was legally unjustifiable. The court questioned how the disciplinary authority could impose such a harsh penalty without a clear legal provision allowing it.
The court emphasized that under the Central Civil Services (Pension) Rules, 1972, the maximum penalty allowed is withholding 50% of the pension for a limited period or permanently. However, there is no provision to withhold 100% of pension and gratuity.
The court also pointed out that the disciplinary inquiry was based on the same evidence as the criminal case, where Karkun had been acquitted due to a lack of evidence. Since both proceedings stemmed from the same incident, the acquittal should have applied to the disciplinary case as well.
Court’s Final Verdict
Taking into account Karkun’s age, health condition, and prolonged legal struggle, the court ordered the authorities to pay him his full pension and gratuity within four weeks. It also rejected the government’s argument that an appeal should be filed, noting that Karkun had already suffered enough due to the prolonged delay.
The court remarked, “The petitioner is now 73 years old. He has not received his rightful benefits despite retiring 13 years ago. This penalty is worse than dismissal.”
With this ruling, Karkun is set to finally receive his retirement benefits, bringing an end to a prolonged legal battle.
