PERMANAND SINGH Vs. PUNJAB STATE ELECTRICITY BOARD AND ORS.
LAWS(P&H)-2007-5-203
HIGH COURT OF PUNJAB AND HARYANA
Decided on May 28,2007

Permanand Singh Appellant
VERSUS
Punjab State Electricity Board and Ors. Respondents

JUDGEMENT

M.M. Kumar, J. - (1.) The petitioner, who is a retired employee of the respondents Punjab State Electricity Board (for brevity 'the Board'), has approached this Court by filing the instant petition under Article 226 of the Constitution for issuance of directions to the respondents to release his retiral benefits such as full pension, gratuity, leave encashment and Provident Fund along with interest. @ 18% per annum from the date of his retirement till its actual payment. 2, The petitioner has retired on 31.5.2002 on attaining the age of superannuation of 58 years after rendering 36 years of service. At the time of superannuation he was working as Junior Engineer with the Board. On 2.12.2002 a Charge -sheet (Annexure P2 & P -2/1) was issued to him alleging shortage of various items worth Rs. 4,86,853/ -. It was proposed that proceedings under Regulations 5 read with Regulation 8 of Punjab State Electricity Board Employees (Punishment & Appeal) Regulations, 1971 (for brevity '1971 Regulations') were to be initiated. Alongwith the Charge Sheet a list of various items alleged to be short, was also served on the petitioner in the form of Annexure A. 3. The petitioner submitted his reply on 28.5.2003 (Annexure P -3) and thereafter comments of the Senior Executive Engineer -respondent No. 4 were obtained by the Chief Engineer in respect of all the twenty four items (Annexure P -4 & P -4/1). After some inter -departmental correspondence between respondents No. 3 and 4, the Executive Engineer on 28.11.2003 addressed a letter to the Superintending Engineer with a copy to the Chief Engineer (operation) - respondent No. 3, disclosing that shortage of worth Rs. 19,355/ - in respect of three items could be found against the petitioner (Annexure P -7). The petitioner has still further insisted in his representation dated 5.12.2003 (Annexure P -8) that a number of items stood adjusted and all the detail particulars were furnished. Accordingly, the aforementioned shortage was further reduced by Rs. 9,480/ - as is evident from the perusal of para No. 11 of the written statement filed by the Board. 4. Another charge -sheet dated 12.5.2004 (Annexure R -4/1) has been issued to the petitioner with the allegations of causing loss to the Board to the tune of Rs. 2,17,644' -. It has been alleged that the petitioner refused to accept the charge -sheet and a press note has to be issued by the Board (Annexure R -4/2). The Board has claimed in its written statement that the petitioner has been released 2/3 rd of the pension and an amount of Rs. 91,388/ - on account of General Provident Fund has been offered. A copy of the voucher for payment of General Provident Fund has been attached with the written statement as Annexure R -4/3. It has further been claimed that gratuity and leave encashment have been withheld in view of Rules 2.2.(b), 2.2(c) of Punjab Civil Services Rules Vol.11. 5. We have heard learned Counsel for the parties and minutely perused the pleadings along with annexures with their able assistance. We are constrained to observe that petitioner has been treated shabbily by the Board. He retired from service on 31.5.2002 and till date his pensionary benefits along with General Provident Fund have not been paid on the excuse that proceedings for imposition of major penalty as contemplated by Regulations 5 and 8 of 1971 Regulations are pending Rule 2.2(b) and 2,2(c) of Punjab Civil Services Rules Vol.II, on which reliance has been placed by the Board reads as under:
(2.) 2.(a) Recoveries from pensions. xxxxxxxxxxxxxxxxxxxxx 2.2.(b) The Government further reserve to themselves the right of withholding or withdrawing a pension or any part of it, whether permanently or for a specified period and the right of ordering the recovery from a pension of the whole or part of any pecuniary loss caused to Government, if in a departmental or judicial proceeding, the pensioner is found guilty of grave misconduct or negligence during the period of his service, including service rendered upon re -employment after retirement: Provided that - (1) Such departmental proceedings, if instituted while the officer was in service, whether before his retirement or during his re -employment, shall after the final retirement of the officer, be deemed to be a proceeding under this article and shall be continued and concluded by the authority by which it was commenced in the same manner as if the officer had continued in service; (2) Such departmental proceedings, if not instituted while the officer was in service whether before his retirement or during his re -employment - (i) shall not be instituted save with the sanction of the Government; (ii) shall not be in respect of any event which took place more than four years before such institution, and (iii) shall not be in respect of any event which took place as the Government may direct and in accordance with the procedure applicable to departmental proceedings in which an order of dismissal from service could be made in relation to the officer during his service. (3) No such judicial proceedings, if not instituted while the officer was in service, whether before his retirement or during his re -employment shall be instituted in respect of a cause of action which arose or an event which took place more than four years before such institution; and The Public Service Commission should be consulted before final orders are passed. Explanation. - For the purpose of this rule - (a) a departmental proceeding shall be deemed to be instituted on the date on which the statement of charges is issued to the officer or pensioner, or if the officer has been placed under suspension from an earlier date, on such date; and (b) a judicial proceeding shall be deemed to be instituted - (i) in the case of a criminal proceeding, on the date on which the complaint or report of the police officer on which the Magistrate takes cognizance, is made; and (ii) in the case of a civil proceeding, on the date of presentation of the plaint in the court. Note: - xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx 2.2.(c)(1) Where any departmental or judicial proceeding is instituted under Clause (b) of Rule 2.2. or where a departmental proceeding is continued under Clause (i) of the proviso thereto against an officer who has retired on attaining the age of compulsory retirement or otherwise, he shall he paid during the period commencing from the date of his retirement to the date on which, upon conclusion of such proceedings, final orders are passed, a provisional pension not exceeding the maximum pension winch would have been admissible on the basis of his qualifying service up to the date of retirement or if he was under suspension on the date of retirement upto date immediately preceding to the date on which he was placed under suspension; but no gratuity or death -cum -retirement gratuity shall be paid to him until the conclusion of such proceedings and of final orders thereon. The gratuity, if allowed to be drawn by the competent authority on the conclusion of the proceedings will be deemed to have fallen due on the date of issue of final orders by the competent authority. Provided that where Departmental proceedings have been instituted under Rule 10 of the Punjab Civil Services (Punishment and Appeal) Rules, 1970 for imposing any of the penalties specified in Clauses (i), (ii) and (iv) of Rule 5 of the said rules, the payment of gratuity or death -cum -retirement gratuity, as the case may be, shall not be withheld. (2) Payment of provisional pension made under Sub -clause (1) shall be adjusted against the final retirement benefits sanctioned to such officer upon conclusion of the aforesaid proceedings but no recovery shall be made where the pension finally sanctioned is less than the provisional pension or the pension is reduced or withheld either permanently or for a specified period. (emphasis added) 6. A perusal of aforementioned Rules shows that the Government has reserved to itself the right of withholding or withdrawing a pension or any part of it and the right of ordering the recovery from a pension of the whole or a part of any pecuniary loss caused to the Government, if the pensioner is found to be guilty of grave mis -conduct or negligence in a departmental or judicial proceeding initiated during the period of his service before the retirement of the pensioner which were continued after his retirement. If such proceedings are initiated after his retirement then it can not be instituted without the sanction of the Government nor it can be in respect of any event which had taken place more than four years before the institution of such proceedings. It has farther been clarified by the explanation that the departmental proceedings are deemed to be instituted on the date on which the statement of charges is issued to the officer/pensioner. 7. A perusal of Rule 2.2(c) shows that in any case full pension on provisional basis has to be paid to a retired employee on the basis of his qualifying service upto the date of retirement and that only his gratuity or death -cum -retirement gratuity could be withheld. 8. In the present case, according to the Board itself, the shortage found against the petitioner in respect of the charge -sheet dated 2.12.2002 (Annexure P -2) is Rs. 19,355/ -(Annexure P -7) which has been further reduced by a sum of Rs. 9,480/ -. Another charge -sheet is stated to have been issued on 12.5.2004. It has been alleged that the petitioner has caused loss to the tune of Rs. 2,17,644/ - to the Board. No details of the charges have been furnished along with the memorandum dated 12.5.2004 (Annexure R -4/1) which is obviously done with an oblique motive of concealing all detail facts because if the allegations in charge -sheet are in respect of an event which has happened four years preceding the date of charge -sheet then, no proceedings could be initiated. Moreover, no sanction of the (Board) has been obtained. 9. In view of the above, we find that petitioner is entitled to payment of 100% provisional pension as per provisions of Rule 2.2(c) of Punjab Civil Services Rules Vol.II. The petitioner can also not be denied the payment' of leave encashment, General Provident Fund and G.I.S. (if any) because there is no provision in the rules to warrant withholding of all these retiral benefits and the Board has acted arbitrarily. 10. For the reasons aforementioned, this petition succeeds. The petitioner is held entitled to release of all his retiral benefits except gratuity which shall be paid to him within a period of two months from the date of receipt of copy of this order. The petitioner shall be entitled to interest @ 12% per annum from the date, the amount was due till its actual payment. With regard to gratuity, the Chief Engineer -respondent No,3 is directed to decide the case of the petitioner within two months by keeping in view as to whether the charge -sheet (Annexure P -2) issued to him on 2.12.2002 and charge -sheet dated 12.5.2004 (Annexure R -4/1) pertains to some event which is four year old preceding the date of issuance of charge sheet. The Chief Engineer -respondent No. 3 shall record categoric finding on the aforementioned issue. If the charges are found to be in respect of an event which is four years old or more than four years old, preceding the date of issuance of charge -sheets dated 2.12.2002 (Annexure P -2) and 12.5.2004 (Annexure R -4/1) then the amount of his gratuity shall also be released to the petitioner within a period of one week thereafter because no enquiry in respect of such event could be held. Therefore, all proceedings shall be deemed to be dropped. Otherwise, any proceedings, if necessary to be continued against the petitioner, shall be continued with the permission of the Board. Such proceeding shall be concluded within a period of six months from the date of receipt of copy of this order. Petitioner is held entitled to his costs which we quantify at Rs. 10,000/ -.;


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