Srinagar, June 10: High Court held that retiral benefits cannot be withheld on account of FIR and investigation thereunder without filing of chargesheet before the competent court of law.
Justice Sanjay Dhar observed that pension or retiral benefits can only be withheld when departmental or judicial proceedings establish loss caused to the employer due to negligence or fraud but mere pendency of investigation without filing of chargesheet does not amount to a judicial proceeding", the court said.
Court added that though a departmental enquiry had been conducted and an FIR had earlier been registered against the petitioner Vikar Mustafa the criminal court later discharged him and dismissed the chargesheet in FIR No. 10/2019. The Court further held that the respondents had failed to show any financial loss caused to the Corporation (JKPCC) or any monetary gain received by the petitioner-Mustafa.
It was also admitted that he had neither drawn charge allowance nor salary attached to the post of Managing Director. The petitioner-Mustafa had challenged the withholding of his gratuity, leave salary, and unpaid salary after his retirement from the J&K Projects Construction Corporation Ltd merely on the ground of FIR registered against him.
The court allowed his petition and directed the authorities to release his terminal benefits and unpaid salary within two months. Court added that failing which the amount would carry 6% annual interest from the date of filing of the petition.
The case revolves around that when the petitioner was functioning as Managing Director of respondent-Corporation on incharge basis, a fact finding Committee was instituted by the Government in 2018 to look into the certain allegations relating to functions and operations of the affairs of respondent-Corporation.
A report came to be prepared by the members of the fact-finding Committee it was mentioned therein that arrangement made in the respect of the petitioner to work as Incharge Managing Director by virtue of order dated 02.03.2018 deserves to be enquired into by the Crime Branch.
Based upon the recommendation of the fact-finding Committee, a letter was addressed to SSP Crime Branch Kashmir, on the basis of which, FIR bearing No. 10/2019 came to be registered, whereafter, a challan was produced against the petitioner before the court of learned Special Judge, Anti-Corruption, Kashmir.
The petitioner has been discharged in the case arising out of FIR No. 10/2019 of Police Station, Crime Branch Srinagar in terms of order dated 29.08.2025 passed by the Special Judge Anti-Corruption Srinagar and the charge sheet against the petitioner stands dismissed.
The court said that the loss caused to the employer on account of negligence or fraud is required to be established either in the judicial or in the departmental proceedings.
Therefore, as on date, there is no judicial proceeding pending against the petitioner whereby assessment of losses that may have been caused to the respondent-Corporation on account of acts and omissions of the petitioner is being undertaken.
court added that hence, it is not open to the respondents to withhold the terminal benefits of the petitioner or to withhold his salary dues.
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