In Brief
An employee convicted in a criminal case for corruption cannot claim release of Death-cum-Retirement Gratuity (DCRG) while an appeal against conviction is pending. The Supreme Court upheld the State of Kerala's right to withhold DCRG during pendency of judicial proceedings under the Kerala Service Rules. The Court held that Rule 3A, read together with Rule 3 and its Notes, clearly permits withholding of DCRG until criminal proceedings conclude. An appeal constitutes continuation of judicial proceedings. The High Court erred in striking down the DCRG-withholding provision. The provisional pension already being paid suffices for sustenance. The Court applied the principle from Mahanadi Coalfields, permitting withholding of gratuity after superannuation if disciplinary proceedings were initiated in service.">
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