SRINAGAR, Aug 8: The Central Administrative Tribunal quashed the order withholding service benefits of a retired Government official by holding the benefits cannot be withheld on mere pendency of an FIR.
The single bench presided by Ritu Tagore (Judl) quashed the Government order whereby gratuity, leave encashment and other retiral benefits of one Mohammad Latif Shah (retired Assistant Director Handicrafts) were withheld.
The bench after hearing relied on the rulings as produced by the counsel during the course of arguments has held that the service benefits on mere pendency of FIR cannot be withheld.
The bench quashed the order with the direction to the department to process and release all admissible retiral dues within eight weeks in favour of the aggrieved retired employee.
The CAT warned that in case the department fails to comply with the direction then the applicant would be entitled to 6 percent annual interest till actual payment is made.
The court further laid down that the power to withhold gratuity and leave encashment under CSR is not automatic and can be only invoked once actual 'judicial proceedings' have been instituted.
CAT further added that mere registration of FIR and pendency of investigation do not amount to institution of judicial proceedings, as no charge-sheet had been filed against the applicant either at the time of his retirement or when the impugned order was passed, as such the statutory precondition for withholding the benefits was illegal as such the order under challenge is unsustainable in the eyes of law.
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