Withholding retirement benefits of former PGI dean illegal: Central Administrative Tribunal

The Chandigarh Bench of Central Administrative Tribunal has directed the PGI to release regular pension and other retirement benefits e.g. gratuity, commutation of pension and leave encashment within a period of two months to Dr Rakesh Sehgal, former dean of the premier health institute.

The Bench, in the order, says that since no disciplinary or criminal proceedings are pending against the applicant till his retirement therefore, the action of the respondents (PGI) in withholding the applicant’s regular pension and retiral benefits is not sustainable in the eyes of law.

It said the stand of the respondents that the retirement dues would be settled after the reply sought for by them with respect to GST deposit details was held to be “arbitrary and illegal” and the order dated May 3, 2023, was quashed to that extent.

The Bench said that the applicant was also held entitled for interest on the arrears of pension and other retiral benefits, at the rate of six per cent per annum, to be calculated after two months of retirement till the date of payment.

Sehgal filed the application through counsel  Karan Singla challenging the PGI order vide which his retirement benefits were withheld.

He prayed before the Tribunal to quash and set aside the order to the extent that it restrained to release/settle the retirement benefits and other dues.

He also prayed for issuing a direction to release monthly pension gratuity and other benefits.

Karan Singla, counsel of Dr Sehgal, argued   that neither any disciplinary proceedings nor any criminal or civil proceedings were instituted against the applicant on or before the date of retirement and even today, therefore, the respondents could not withhold his pension and retiral benefits.

After hearing of the arguments, Suresh Kumar Batra, member of Tribunal, said that  the stand of the respondents that the retirement dues would be settled after the reply sought for by them with respect to the GST deposit details was held to be arbitrary and illegal. “The respondents are directed to release the regular pension and other retiral benefits e.g. gratuity, commutation of pension and leave encashment within a period of two months from the date of receipt of a copy of this order,” he stated.

Chandigarh