Can monetary benefits accruable to an employee at the time of his retirement or immediately thereafter, be withheld by his or her employer on any ground not prescribed by any statute , law or similar authority has been interpreted in many ways and even executive decisions having been in its favour and supported by judicial verdicts. That has been primarily due to the said retiree having a criminal case or any other disciplinary case pending against him.
In a case of this nature while a single bench judgment of the High Court had given its approval and ordered for withholding such benefits otherwise due to a retiree since he had indulged in an embezzlement and an FIR was lodged against him, the Division Bench of High Court has ordered to release all the benefits including Gratuity, G. P. Fund balance and other monetary benefits to the appellant retired employee along with interest @ 6% within 8 weeks of the judgment failing which the respondents had to pay a penal interest of 3% more to the ”aggrieved” retiree. The earlier judgment was, therefore, set aside.
This order primarily rests on the premise of social justice as almost all the benefits accruable, have over the period of active service, either earned by or contributed to which the employee was entitled as “property” and Supreme Court too had passed orders in that respect. However, the recoveries could be made from the pension of the retired employee in respect of loss caused to the public exchequer due to his or her fraudulent activities.
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