{"id":196990,"date":"2018-06-19T10:06:46","date_gmt":"2018-06-19T04:36:46","guid":{"rendered":"http:\/\/www.scconline.com\/blog\/?p=196990"},"modified":"2018-06-22T16:50:15","modified_gmt":"2018-06-22T11:20:15","slug":"government-entitled-to-withhold-leave-encashment-of-an-employee-pending-criminal-or-departmental-proceedings","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2018\/06\/19\/government-entitled-to-withhold-leave-encashment-of-an-employee-pending-criminal-or-departmental-proceedings\/","title":{"rendered":"Government entitled to withhold leave encashment of an employee pending criminal or departmental proceedings"},"content":{"rendered":"

Patna High Court: <\/strong>The Division Bench comprising of Rajendra Menon, CJ, and Ravi Ranjan J., held in a challenge made by the petitioner that withholding his gratuity and encashment of earned leaves was valid if, at the time of superannuation, departmental or criminal proceedings were pending.<\/p>\n

In a nutshell, the brief facts of the case are that the petitioner was working with the Public Works Department and a case was registered against him in the year 2013 when a raid was conducted in which the property and money found on his premises was found to be disproportionate in reference to the known source of income of the employee. Therefore, petitioner was booked under Sections 13(2) with Section 13(1) (e) of the Prevention of Corruption Act, 1988, in the continuance of these proceedings, he superannuated in the year 2015.<\/p>\n

The submissions of the petitioner stated that he was sanctioned 90% of the provisional pension. Provident fund dues, 10% pension, full gratuity and admissible leave encashment were withheld. He placed reliance on a Supreme Court case of State of Bihar v. Md. Adris Ansari; <\/em>1995 Supp (3) SCC 56<\/a><\/strong>\u00a0in which it was stated that \u201cuntil and unless the employee concerned is held guilty of the misconduct levelled against him or punished in the judicial proceedings pending, in view of the provisions of Rule 43(b) pension, gratuity and leave encashment cannot be withheld<\/em>.\u201d Similarly in the case of Bajrang Deo Narain Sinha v. State of Bihar;\u00a0<\/em>1999 SCC OnLine Pat 673<\/a>,<\/strong> the Court again placed reliance on Rule 43(b) of the Pension Rules, stating that \u201cthe dues of the petitioner including gratuity, pension and leave encashment cannot be withheld.<\/em>\u201d<\/p>\n

However, on recordance of the stated statutory provisions and various circulars, it was clear that 10% pension could be withheld during the pendency of the departmental proceedings or a criminal case, whereas 90% provisional pension is to be granted. The High Court stated that if an employee is facing a criminal case or a departmental proceeding at the time of his retirement, the government has the power to withhold leave encashment.<\/p>\n

Therefore, by stating the case of Vijay Kumar Mishra v. State of Bihar; <\/em>2017 (1) PLJR 575,<\/em><\/strong> it was held that leave encashment of a Government employee can be withheld and its withholding by executive instructions is permissible. [Arvind Kumar Singh v. State of Bihar; 2018 SCC OnLine Pat 749<\/b><\/a>; dated 02-05-2018]<\/p>\n","protected":false},"excerpt":{"rendered":"

Patna High Court: The Division Bench comprising of Rajendra Menon, CJ, and Ravi Ranjan J., held in a challenge made by the <\/p>\n","protected":false},"author":8808,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3,10],"tags":[30517,9081,5271,30516],"class_list":["post-196990","post","type-post","status-publish","format-standard","hentry","category-casebriefs","category-highcourts","tag-criminal-proceeding","tag-gratuity","tag-pension","tag-withheld"],"yoast_head":"\nGovernment entitled to withhold leave encashment of an employee pending criminal or departmental proceedings | SCC Times<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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Shekher Dhawan, J., dealt with a writ petition for the release of retiral benefits i.e. leave encashment to the petitioner.\u00a0 Petitioner had filed the instant petition for the release of leave encashment as a retiral benefit. Facts of the case\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":245199,"url":"https:\/\/www.scconline.com\/blog\/post\/2021\/03\/08\/gratuity\/","url_meta":{"origin":196990,"position":1},"title":"CAT | Employer is entitled to withhold payment of gratuity even after the employee had attained his superannuation; Tribunal reiterates legal position","author":"Editor","date":"March 8, 2021","format":false,"excerpt":"Central Administrative Tribunal (CAT):\u00a0 Aradhana Johri, Member (A), partly allowed the instant application whereby the applicant had sought for issuance of directions for the release of gratuity and leave encashment which had been illegally withheld by the respondent. The applicant was appointed to the post of Constable with the respondents\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/05\/CAT.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/05\/CAT.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/05\/CAT.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/05\/CAT.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/05\/CAT.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":318939,"url":"https:\/\/www.scconline.com\/blog\/post\/2024\/03\/31\/taking-away-withholding-retiral-benefits-amounts-to-denial-of-right-to-life-rajasthan-high-court-scc-times\/","url_meta":{"origin":196990,"position":2},"title":"Taking away\/withholding retiral benefits amounts to denial of \u2018Right to life\u2019: Rajasthan High Court","author":"Ritu","date":"March 31, 2024","format":false,"excerpt":"Rajasthan High Court held that retiral benefits are earned by employees for their services and should not be deprived due to non-job-related legal matters.","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"Rajasthan High Court","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/02\/Rajasthan-High-Court.webp?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/02\/Rajasthan-High-Court.webp?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/02\/Rajasthan-High-Court.webp?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/02\/Rajasthan-High-Court.webp?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":208859,"url":"https:\/\/www.scconline.com\/blog\/post\/2019\/01\/28\/gau-hc-retired-government-servant-against-whom-judicial-proceeding-is-pending-entitled-to-provisional-pension-only\/","url_meta":{"origin":196990,"position":3},"title":"Gau HC | Retired government servant against whom judicial proceeding is pending \u2013 entitled to provisional pension only","author":"Bhumika Indulia","date":"January 28, 2019","format":false,"excerpt":"Gauhati High Court: The Bench of Michael Zothankhuma, J. dismissed a civil writ petition filed by a retired government employee seeking full pension, gratuity and other retirement benefits. Petitioner, an Assistant Manager in the respondent corporation was arrested for offence under Sections 406, 408, 409, 470, 120-B, 468 and 471\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":292978,"url":"https:\/\/www.scconline.com\/blog\/post\/2023\/05\/24\/departmental-proceedings-cannot-be-continued-after-superannuation-of-employee-unless-provided-by-service-rules-legal-news\/","url_meta":{"origin":196990,"position":4},"title":"Departmental Proceedings cannot be continued after superannuation of employee unless provided under the Service Rules: Orissa HC reiterates","author":"Editor","date":"May 24, 2023","format":false,"excerpt":"The Court said that even if the Departmental Proceeding was initiated prior to the superannuation of the delinquent employee, the same cannot be continued unless specifically provided under the Service Rules.","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"Orissa High Court","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/02\/MicrosoftTeams-image-508.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/02\/MicrosoftTeams-image-508.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/02\/MicrosoftTeams-image-508.png?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/02\/MicrosoftTeams-image-508.png?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":203177,"url":"https:\/\/www.scconline.com\/blog\/post\/2018\/10\/05\/no-departmental-proceedings-can-be-initiated-against-former-employee-unless-provided-for-by-relevant-rules\/","url_meta":{"origin":196990,"position":5},"title":"No departmental proceedings can be initiated against former employee unless provided for by relevant rules","author":"Bhumika Indulia","date":"October 5, 2018","format":false,"excerpt":"Calcutta High Court: A Single Judge Bench comprising of Sambuddha Chakrabarti, J. allowed a writ petition which sought directions to the respondents to release post retiral benefits of the petitioner. The petitioner was employed at the post of Director (Finance) in National Jute Manufacturers\u2019 Corpn. Ltd. 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