In Brief
A retired government veterinary officer challenged the withholding of 10% of his pension and all gratuity by the State of Bihar while criminal proceedings remained pending. The Court held that pension and gratuity are property rights protected under Article 300A of the Constitution. Administrative circulars lacked legal force to override statutory pension rules. Before July 2012, no statutory rule permitted withholding benefits during pending proceedings; only after conviction. The Court directed payment of 10% withheld between 2008–2012, with 90% gratuity immediately released. After July 2012, when Rule 43(c) was statutorily enacted, withholding 10% pending proceedings became lawful.
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