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Penalty for delay in payment of pension and gratuity

In State of Uttar Pradesh and Ors. v. Dhirendra Pal Singh and Ors., Respondent was Assistant Store Superintendent with Irrigation Department of State of Uttar Pradesh. He stood retired on 30th June, 2009 on attaining age of superannuation. At time of his retirement GPF, leave encashment and 70% of gratuity and pension were cleared, but rest of 30% of gratuity and computation of pension were held up. Stand of Appellants is that there were some discrepancies in the stock in the store of Department and some enquiries were going on as to loss caused to public exchequer. After making representations, when remaining amount of gratuity and pension was not cleared, Respondent filed Civil Suit No. 338 of 2012. However, same was dismissed as withdrawn as Appellants/State authorities, vide order finally, on basis of alleged discrepancies withheld the remaining part of gratuity and pension of the Respondent and, vide order, directed recovery of Rs. 7,26,589/-, from retiral dues payable to Resp...

Disciplinary action after retirement

The Vacation Bench of the Supreme Court in State of West Bengal vs Aswini Kumar Mahato has held that an order of cut in pension was permissible after a person reached the age of superannuation. The Bench comprising of Justices A.K.Goel and A.M.Khanwilkar has allowed the Appeal filed by State of West Bengal against a Calcutta High Court order in which it was held that once an employee is allowed to retire on attaining the age of superannuation, the concerned authority has no jurisdiction to pass an order in a disciplinary proceeding since the master-servant relationship cannot exist after retirement. It is argued on behalf of the state that under Rule 10(1) of the West Bengal Services (Death-cum-Retirement Benefit) Rules, 1971 pension can be withheld if either any pecuniary loss was caused by the concerned employee or the employee is found to be guilty of misconduct or negligence while in service. This, of course, is subject to the conditions contained in the proviso to Rule 10(1) of th...