High Court Imposes ₹50K Cost On Punjab Govt For Unjustly Withholding Retiral Benefits Over 14-Year-Old Alleged Incident

The Punjab and Haryana High Court has imposed a cost of ₹50,000 on the Punjab government for unjustly withholding the retiral benefits of a former employee based on an alleged incident that occurred 14 years prior to his retirement.

It is pertinent to note that the Punjab Civil Services Rules (applicable in this case), forbids initiating disciplinary proceedings after an employee has retired, if the matter pertains to an event that happened over four years before the date of initiating the proceedings.

Justice Harpreet Singh Brar said, "The approach adopted by the respondents to deprive the petitioner of the well-deserved retiral benefits accrued to him, in view of the service rendered by him, ought to be condemned in the strictest terms Oftentimes, retiral benefits are the only source of income for many families, especially when the primary breadwinner has retired."

The retired employees and their kin not only rely on the same for fiscal security but also for their very survival, the Court added.

Delay In Disbursement Violates Fundamental Right

The judge observed that, in a welfare State like ours, the very object of granting pension and other retiral benefits is to secure to retirees and their families the means to live a life of dignity; accordingly, any delay in the disbursement of such benefits particularly when occasioned by the omission or lapse of the State or its instrumentalities must be regarded as a violation of the beneficiaries' fundamental rights.

The Court was hearing a plea filed by a retired Sub-Divisional Engineer seeking the quashing of an order passed by a Punjab Government department, whereby his retiral benefits were denied on the ground that a charge sheet had been issued over alleged incidents dating back to 2010–2011.

The allegations pertained to negligence in the execution of the Optimum Utilisation of Vacant Government Land (OUVGL) scheme project at the Verka Milk Plant, Amritsar.

After hearing the submissions, the Court noted referring to Punjab Civil Services Rule noted that, the rule precisely forbids initiating disciplinary proceedings after an employee has retired, it the matter pertains to an event that happened over four years before the date of initiating the proceedings.

It further pointed that the charge-sheet, which was issued on 28.04.2025 discloses that the date on which the alleged misconduct is between 2010 -11, which was about 14 years before the issuance of charge-sheet issued after the superannuation of the petitioner.

Justice Brar highlighted that, Pension and other retiral benefits do not possess a gratuitous nature. "Rather, such benefits accrue to the retiree by virtue of dedicated service rendered by him to his employer for a significant portion of his life."

The Court opined that since the charge-sheet has been adjudged to have been issued unlawfully, the petitioner is entitled not only to interest but also to the costs of the present proceedings.

The gratuity amount and the leave encashment, which was unjustifiably withheld, shall be released to the petitioner within a period of thirty (30) days, together with interest at the rate of 7.5% per annum, computed from 29.02.2024 until the date of actual disbursement.

While imposing the Cost, the judge observed that, "The valuable time of this Hon'ble Court has been unnecessarily consumed in adjudicating the present avoidable litigation, which the petitioner was constrained to initiate on account of the conduct of the respondents in gross violation of law."

Observing that the proceedings are wholly contrary to the fundamental objectives of the Litigation Policy of the State of Punjab, the Court directed to pay the cost to the petitioner within 30 days.

Raj Kumar Arya for the petitioner.

Mr. Vikas Arora, DAG, Punjab.

Mr. Ritik Chatrat Kapur, Advocate for respondent No.2 to 4

Title: Vasdev Sinh v. State of Punjab and Others

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