In Brief
Dr. Hira Lal, a retired government veterinary officer, was suspended in 2002 and faced criminal proceedings in the Fodder Scam case. On superannuation in 2008, the State of Bihar withheld 10% of his pension and his entire gratuity based on administrative circulars pending outcome of criminal proceedings. The Supreme Court held that administrative instructions cannot override statutory pension rules. Since Rule 43(b) permits withholding only after a finding of misconduct, withholding during pendency is unlawful. The Court directed payment of 90% gratuity and arrears of 10% pension from 2008–2012, with 10% pension withholdable only from 2012 onwards when Rule 43(c) was validly inserted.
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