WITHDRAWAL /WITHHOLDING/RECOVERY OF PENSION/GRATUITY IN THE CASE OF MNOR PENALTY PROCEEDINGS.

D.G. Posts No. 14013/03/2010-VP dated 09.02.2012.

         I am directed to say that as per the DOP&T OM No. 110/9/2003-AVD-I dated 13.04.2009, the minor penalty proceedings cannot establish the grave misconduct or negligence leading to the withdrawal/withholding /recovery of pension/gratuity as a result of minor penalty proceedings instituted against a charged official during his service and which had continued after his retirement. The above instructions of the DOP&T were circulated to all concerned by the Pension Section of this office vide letter No. 4-4/09-Pension dated 4.6.2009 for information, guidance and taking necessary action.

2       However, some of the units have shown their unawareness of the above instructions of P&T. Therefore, the same are re-circulated to all units for information, guidance and taking necessary action.

Copy of DOPT O.M. No. 110-9/2003-AVD-I dated 13^th April, 2009.

WITHDRAWAL /WITHHOLDING/RECOVERY OF PENSION/GRATUITY IN THE CASE OF MINOR PENALTY PROCEEDINGS.

         The undersigned is directed to refer to this Departments OM No. 134/9/86-AVD-I dated 31^st July 1987 wherein it was clarified that the Central Government has the power to withhold or withdraw pension even as a result of minor penalty proceedings instituted against a charged officer during his service and which had continued after his retirement provided misconduct or negligence is established. The  underlying basis for this OM was that there can be circumstances wherein proceedings initiated or minor penalty could result in establishment of grave misconduct or negligence on conclusion of the proceedings warranting a cut or withholding  of pension or recovery of pecuniary loss. The OM of 31^st July 1987 was issued in cancellation of the earlier O.M. No. 134/10/80-AVD-I dated 28^th Feb, 1981 which interalia, stated that grave misconduct or negligence cannot be established as a result of minor penalty proceedings.

2.      The OM of 31.7.1987 came for scrutiny before the Central Administrative Tribunal(CAT), Principal Bench , Delhi in OA no 2068 of 2002 (RS Sagar, NOIDA, UP Vs. Union of India) pertaining to the Ministry of Urban Development and Poverty Alleviation. The Hon'able Tribunal was considering an application against the order of withholding of gratuity of a charged officer who had retired from service. The Tribunal, while considering the said case set aside the said OM of 31^st July 1987 of this Department holding it ultra virus the CCS (Pension) Rules 1972. The ratio of the decision in this OA was applied to OA no. 142 of 2003 (I.K. Rastogi Vs Union of India) by Principal Bench, Delhi. This Department was neither a party nor impleaded in the said OAs at any stage.

3.      The implication of the judgement of Hon'ble CAT on this Division's O.M. of 31.7.87 was considered in consultation with Department of Pension & Pensioners' Welfare and Department of Legal Affairs and it was noted that the matter has attained legal; finality.

4.      In view of the above and in the light of said order of Ho'nble CAT Principal Bench setting aside the OM of 31^st July 1987 this Department's OM no. 134/10/80-AVD-I dated 28^th Feb 1981 resorted and the OM of 31^st July 1987 stands withdrawn.

Sd/-

(P.K. Ravi)

Under Secretary to the Government of India