Madras High Court Orders Restoration of Pension for Convicted Retiree

Conviction under Section 138 of Negotiable Instruments Act not a Moral Turpitude; Pension to be Released with Arrears

In a significant ruling, the Madurai Bench of the Madras High Court has ordered the restoration of pension benefits to a retired police officer, Srinivasan, whose pension was stopped following a conviction under Section 138 of the Negotiable Instruments Act. The court, presided over by Justice K. Kumaresh Babu, determined that such a conviction does not constitute an offense involving moral turpitude, which is a prerequisite for withholding pension under the Tamil Nadu Pension Rules, 1978.

The judgment came in response to a writ petition filed by Srinivasan challenging the decision of the Treasury and Accounts Department, which had halted his pension citing misconduct. Srinivasan had been convicted in multiple cases under Section 138, a provision dealing with dishonor of cheques, which arises from contractual disputes. The petitioner argued that this should not affect his entitlement to pension, as these convictions do not reflect on his moral character or integrity.

The court referenced a prior judgment from September 2024, which similarly held that convictions under Section 138 do not involve moral turpitude. Justice Babu emphasized that the Tamil Nadu Pension Rules necessitate good conduct from pensioners to maintain their pension benefits, but clarified that a contractual dispute does not imply moral misconduct.

The respondents, represented by Special Government Pleader F. Deepak, contended that repeated convictions under Section 138 amounted to grave misconduct, warranting the cessation of pension payments. However, the court found that no inquiry had been conducted to substantiate claims of misconduct affecting good conduct, which is essential before pension can be withheld.

In delivering the judgment, Justice Babu quashed the impugned order, directing the respondents to resume pension payments to Srinivasan and clear all pending arrears within twelve weeks. The decision reinforces the principle that financial disputes should not automatically impact pension rights unless due process and a fair inquiry affirm moral misconduct.

The ruling is expected to have wider implications for similar cases, setting a precedent that contractual financial disputes, without further evidence of moral failing, should not lead to denial of pension benefits.

Bottom Line:

Pension - Conviction under Section 138 of Negotiable Instruments Act does not amount to moral turpitude - Pension cannot be stopped for such conviction without following due process of law.

Statutory provision(s): Tamil Nadu Pension Rules, 1978 Rule 8, Negotiable Instruments Act, Section 138

Srinivasan v. Director, Treasury and Accounts Department, (Madras)(Madurai Bench) : Law Finder Doc Id # 2802037