Leave encashment, 10% of pension can be withheld if employee faces criminal case: HC

The Patna High Court today held that leave encashment of a government employee can be withheld if he or she is facing a criminal case or departmental proceedings at the time of retirement.

The high court also held that such an employee would be entitled to provisional pension which would include gratuity to the tune of an amount not less than 90 per cent.

A full bench comprising Chief Justice Rajendra and justices Ravi Ranjan and Rajeev Ranjan Prasad passed the judgement on a petition filed by Arvind Kumar Singh challenging the state government's decision to withhold his full gratuity and admissible leave encashment and release of the balance 10 per cent of pension.

"We have no hesitation in holding that when an employee is facing a criminal case or a departmental proceeding, at the time of his retirement, the government is well within its power in withholding leave encashment," the bench said in a 34-page judgement.

On whether pension can be withheld, the verdict said, "An employee who is facing departmental inquiry or judicial proceeding on the date of his superannuation would be entitled to provisional pension which would include gratuity to the tune of an amount not less than 90 per cent."