[S.60 CPC] Pension & Gratuity Amounts Of Retired Employee Cannot Be Attached For Satisfaction Of Any Decree: Telangana High Court

Brief Facts

This writ application was filed by the Petitioner seeking a Writ of Mandamus against the respondent for not releasing her pension and gratuity. The Petitioner was working as a Record Assistant in the office of the Respondent and retired from service on 31.07.2020 on attaining the age of superannuation.

Soon after her retirement, when the petitioner followed up for her retirement benefits, it was brought to her notice that the Civil Court had passed directions to Respondent to withhold Petitioner's salary, leave encashment and other benefits as under Section 60 of the CPC as she was a guarantor/surety for loan transactions that had been defaulted.

The counsel for petitioner contended that the direction of the Civil Court was to withhold salary, leave encashment but the respondent has stopped pension, gratuity and other pensionary benefits which is not permissible under Section 60 of CPC and under Section 11 of the Pensions Act, 1871 and Section 13 of Payment of Gratuity Act, 1972.

Ruling of the Court :

Justice P. Madhavi Devi examined the facts of the case and relied on the decision of the Apex Court in Radhey Shyam (Supra) wherein it was held that "the pension and gratuity of the Petitioner cannot be attached and cannot be withheld for appropriation of a decree of any Civil Court."

The court observed that in clause (g) to Section 60(1) of CPC (Property liable to attachment and sale in execution of decree), the pension and gratuity amounts of a retired employee cannot be attached for satisfaction of a decree of any Court.

Hence, the Court directed the Respondent to pay the entire amount of pension and gratuity as eligible. However, it was made clear that Petitioner would not be entitled for payment towards encashment of leave as it is not exempted from attachment under Section 60 CPC.

The writ was partially allowed.

Case Title: Smt. N.R Indira v. The State of Telangana and 3 others

Citation: 2022 LiveLaw (Tel) 97