Pension Rights Upheld: Punjab & Haryana HC Orders Release of Gratuity Despite Pending Appeal
Case Name: Jeet Singh v. State of Haryana and Others
Citation: CWP-25231-2024
Date of Judgment: 22 August 2025
Bench: Justice Jagmohan Bansal
Held: The Punjab & Haryana High Court held that a retired government employee who has been acquitted by the trial court and exonerated in departmental proceedings cannot be indefinitely denied gratuity and commutation of pension merely because a criminal appeal against acquittal is pending. The Court directed release of these benefits, subject to the petitioner furnishing security, thereby balancing the rights of the retiree and interests of the State.
Summary: The petitioner, a Sub Inspector (Exemptee), retired on 31.03.2023 after being acquitted in a corruption case under Section 7 of the Prevention of Corruption Act, 1988. During service, he was punished with reversion, but the appellate authority set aside the punishment with consequential benefits. Despite acquittal and departmental exoneration, the authorities withheld his gratuity and commuted pension on the ground that an appeal against acquittal, pending before the High Court since 2019, amounted to continuation of judicial proceedings under Rule 81 of the Haryana Civil Services (Pension) Rules, 2016.
The petitioner contended that since he stood acquitted and no departmental proceedings were pending, denial of his retiral dues was arbitrary. He also expressed willingness to furnish security to safeguard the State’s interests. The State relied on Rule 81, which bars release of gratuity and commutation until final orders in judicial proceedings.
The Court observed that the departmental proceedings had ended in petitioner’s favour and the trial court had acquitted him. Pendency of an appeal could not justify indefinite withholding of retiral benefits, especially when two years had elapsed since retirement. Denial in such circumstances would cause undue hardship.
Decision: The Court directed the respondents to release the petitioner’s gratuity and commuted value of pension upon furnishing security by him. Payment was to be made within two months, without interest, failing which the State would be liable to pay interest at 7.5% per annum from the date of default.