JAGDISH PRASAD Vs. GENERAL MANAGER

JUDGEMENT

(1.) The petitioner has prayed for quashing the letter Reference dated 10.8.2010 (Annexure-3), whereby the petitioner's representation has been rejected holding that the amounts of gratuity and leave encashment cannot be released to the petitioner due to pendency of the Court cases against him. The petitioner has also prayed for a direction on the respondents to release the amounts of gratuity and leave encashment with interest.

(2.) Learned Counsel for the petitioner submitted that the amount of gratuity has been withheld on the ground of pendency of Court cases under the purported provision of FCI (DCRG) Regulations, which empowers to withhold payment of gratuity during pendency of disciplinary action/proceeding. Learned Counsel submitted that the said regulations have become redundant and the circular to that effect being Circular No. 47 of 1996 dated 21.11.1996 has been issued specifically providing that the FCI (DCRG) Regulations have become redundant and no longer applicable to the employees of the FCI. The petitioner has brought the said circular on record as Annexure-6. It has been submitted that in view of the said circular, the respondents have no authority to withhold the amount of petitioner's gratuity. Learned Counsel submitted that even otherwise the said amount was withheld on the ground of pendency of a criminal case in which no charge-sheet has been submitted even after lapse of more than 19 years. There is thus, no valid ground for withholding the amount of petitioner's gratuity and the respondents are liable to release the same.

(3.) The writ petition has been opposed by the respondents stating, inter alia, that the FCI (DCRG) Regulations specifically provides for withholding gratuity in case of pendency of a departmental action/proceeding. Since the criminal case is pending against the petitioner, the amount of gratuity has been withheld by the respondents. It has been further stated that a clarification has been made by the respondents stating, inter alia, that the provisions of Payment of Gratuity Act as well as FCI (DCRG) Regulations were simultaneously operating. It has been submitted that though the Circular No. 47 of 1996 dated 21.11.1996 provides that FCI (DCRG) Regulations have become redundant and no longer applicable to the employees, the same has not been rescinded by issuing any notification. Under the said circumstance, withholding of gratuity amount during pendency of the criminal case against the petitioner is not arbitrary or illegal.