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Government of NCT of Delhi and Another v. K. Srivatsan

Civil Appeal · Neutral citation not assigned (Civil Appeal No. 8854 of 2014)Decided 16 Sept 2014
Civil Appeal No. 8854 of 2014
Justice J.S. Khehar · Justice Arun Mishra

Background

A Delhi government employee deputed to the Municipal Corporation was suspended over alleged financial irregularities before retiring in June 2008. A departmental charge-sheet followed in April 2012, after a CBI investigation ended in a closure report. The Tribunal and High Court required release of his gratuity, treating departmental action as having started too late, and the gratuity was paid.

Decision Breakdown

The Supreme Court allowed the government's appeal and set aside those orders. Under the Pension Rules applied, departmental proceedings were deemed to begin on an earlier suspension date, so the employee's suspension while still serving meant the restriction on proceedings first instituted after retirement did not apply. Instead of requiring immediate repayment of the gratuity, the Court ordered a bank guarantee within two months and immediate refund of any interest paid. The guarantee could be encashed if the departmental charges were proved and had to be cancelled if he was found innocent.

Lesson Learnt

For this retiree, the charge-sheet date alone did not determine whether departmental proceedings began before retirement. The earlier suspension affected gratuity security, but the Court left guilt to the departmental inquiry and did not treat the allegations as proved.

Official source (sci.gov.in)View Judgment (PDF)

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