[All India Services] Commutation Of Pension Not Possible For Retd Officer Undergoing Departmental/Judicial Proceeding, Only Provisional Pension Allowed: Kerala HC

The Division Bench comprising Justice A.Muhamed Mustaque and Justice M.A.Abdul Hakhim referred to Rule 6 of All India Services (Death cum Retirement Benefit) Rules 1958 that outlines the provision regarding the withholding of pension and gratuity for members of the All India Services on pending departmental or judicial proceedings. The Court stated:

“Rule 6(2) deals with orders to be made with respect to Pension and DCRG during the pendency of departmental or judicial proceedings. The last limb of Rule 6(2) would disclose that no DCRG shall be paid to the employee until conclusion of departmental or judicial proceedings and issuance of final orders thereon. When Rule 6(2) says only Provisional Pension is permissible until conclusion of departmental or judicial proceedings, by necessary implication, it prevents sanctioning of Full Pension. Though Rule 6(2) does not specifically refer to Commutation of Pension, the Commutation of Pension is also a part of Pension which could be sanctioned when Full Pension is sanctioned.”

An original application was filed by the retired Director General of Police before the Central Administrative Tribunal seeking a direction to grant the DCRG amount and the Commutation of Pension. The Tribunal ordered disbursement of Pension Commutation and DCRG on the finding that rules governing pension and retirement benefits for members of All India Service lack provisions for withholding pension and gratuity. Aggrieved by the order of the Tribunal, the State Government filed the original petition before the High Court.

The State Government submitted that Rule 6 (2) specifies that in cases where a departmental or judicial proceeding is initiated or when a departmental proceeding is continued after retirement, only provisional pension is allowed after retirement until a final order is passed in the departmental proceedings. Furthermore, it was submitted that the disbursement of DCRG and the Commutation of Pension is impermissible while the departmental proceedings are ongoing.

The Court noted that departmental proceedings were ongoing and a criminal case was also pending against the officer as of the date of retirement.

Analyzing Rule 6 (2), the Court stated that disbursement of DCRG and Commutation Pension shall be paid on the conclusion of departmental or judicial proceedings and upon issuance of final orders.

The Court relied upon State of Orissa and Others v. Kalicharan Mohapatra and others (2002), wherein the Apex Court held that the government was entitled to withhold gratuity and full pension and was only entitled to a provisional pension during the pendency of departmental proceedings. The Apex Court on analyzing Rule 6 (1) therein had held that such departmental or judicial proceedings pertain to causing pecuniary loss to the Government by misconduct or negligence during the service.

In the facts of the case, the Court held that the officer was not entitled to get a Commutation of Pension and DCRG before the completion of Departmental and Judicial Proceedings.

On finding that the criminal case was of the year 2009, the trial of the criminal case shall be expedited and completed within nine months. It also directed for the completion of departmental proceedings without delay on completion of the trial.

As such, the petition was disposed of.

Counsel for Petitioner: Government Pleader Antony Mukkath

Counsel for Respondents: Senior Advocate N Nandakumara Menon, Advocates Alice Thomas, P K Manojkumar, Smitha S Pillai, M C Siny, Central Government Counsel T V Vinu

Citation: 2024 LiveLaw Ker 290

Case Title: State of Kerala v S Pulikeshy IPS

Case Number: OP (CAT) NO.335 of 2017

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