Court affirms that offences under Negotiable Instruments Act do not constitute moral turpitude for pension stoppage under Tamil Nadu Pension Rules.
In a landmark decision, the Madras High Court (Madurai Bench) has ruled that a conviction under Section 138 of the Negotiable Instruments Act, 1881, does not justify the withholding of pension as it does not involve moral turpitude. The judgment was delivered by Justices N. Sathish Kumar and M. Jothiraman while dismissing an appeal filed by the Director of the Treasury and Accounts Department against a previous order that quashed the stoppage of pension for Srinivasan, the respondent, who had been convicted under the said section.
The appellants argued that under Rule 8(b) of the Tamil Nadu Pension Rules, 1978, the authorities have the power to withhold or withdraw pension if the individual is convicted of serious misconduct. However, the court emphasized that an offence under Section 138, which deals with cheque bounce cases, is more akin to a civil wrong with criminal implications and does not equate to criminal offences with moral turpitude typically considered under criminal law.
The court referred to the Supreme Court’s decision in Koushalya Devi Massand v. Roopkishore Khore, which delineates that the gravity of offences under the Negotiable Instruments Act cannot be equated with offences under the Indian Penal Code. Furthermore, the Madras High Court cited its own precedent in Manjula v. State of Tamil Nadu, reinforcing that Section 138 offences are commercial in nature and do not involve moral turpitude.
The court concluded that Rule 8(b) of the Tamil Nadu Pension Rules is applicable only when the conviction involves a serious crime constituting grave misconduct, which is not the case with Section 138 convictions. Consequently, the authorities cannot withhold or stop pension based on such convictions. The appeal was dismissed, and the connected miscellaneous petition was closed, marking a significant affirmation of pension rights for individuals convicted under the Negotiable Instruments Act.
Bottom Line:
Pension Rules - Conviction under Section 138 of the Negotiable Instruments Act, 1881, cannot be deemed as an offence involving moral turpitude for the purpose of withholding or stopping pension under Rule 8(b) of the Tamil Nadu Pension Rules, 1978.
Statutory provision(s):
Tamil Nadu Pension Rules, 1978 Rule 8(b), Negotiable Instruments Act, 1881 Section 138
