Pension and retiral dues cannot be withheld due to failure to vacate government accommodation.
Supreme Court Upholds Employee's Right to Pension Despite Non-Vacation of Government Housing. Apex Court Rules Pension is a Right, Not a Bounty; Orders 6% Interest on Delayed Payment
In a landmark decision, the Supreme Court of India has ruled that pension and retiral benefits are fundamental rights of employees and cannot be withheld due to failure to vacate government accommodation. The judgment was delivered in the case of Panchayat & Rural Development Department versus Santosh Kumar Shrivastava, emphasizing the non-linkage between non-vacation of official residence and entitlement to retiral dues.
The appeal, filed by the Panchayat & Rural Development Department of Madhya Pradesh, challenged a previous decision by the High Court which directed the department to refund deducted amounts and pay interest on delayed pension and gratuity to Santosh Kumar Shrivastava, a retired employee. The Supreme Court bench, comprising Justices Sanjay Karol and Prashant Kumar Mishra, upheld the High Court's decision, reinforcing that the payment of retiral dues is not a matter of bounty but a right for services rendered.
The court observed that the department's action of linking the withholding of retiral dues to the respondent's non-vacation of government accommodation was unjustified. The judgment noted that there is no nexus between occupying government housing and the right to retiral benefits, and emphasized that pension, gratuity, and other dues are accrued rights that cannot be arbitrarily denied.
Further, the Supreme Court addressed the issue of recovery of excess payment from retiral dues. It ruled that recovery is unjustified when the employee had no knowledge of over payment or no misrepresentation was involved. The court granted equitable relief to prevent undue hardship to the respondent.
In addition to ordering the refund of the deducted amounts, the Supreme Court awarded 6% interest on the delayed payment of pension and gratuity, noting that the delay was solely attributable to the employer without any lawful justification.
The judgment reaffirms the principle that employees' retiral benefits should be safeguarded and cannot be withheld on arbitrary grounds. This decision is expected to have significant implications for public sector employees, ensuring their rights are protected upon retirement.
Bottom Line:
Pension and retiral dues are not bounties but rights of the employee for the services rendered, and cannot be withheld due to failure to vacate government accommodation.
Statutory provision(s): Section 2(1) of the Madhya Pradesh Uchcha Nyayalaya (Khand Nyaya Peeth Ko Appeal) Adhiniyam 2005
