The High Court of Kerala says pension benefits can be withheld when disciplinary proceedings are pending, as per rule 3 A (a) of the Part III of the Kerala Service Rules in S Gopalakrishnan Potty v State of Kerala & Another [2024 KER 81106].
In the above case, the petitioner retired from service on 30.11.2008 while vigilance case was pending against him. The vigilance case culminated in acquittal on 20.08.2010. Immediately, thereon, the pensionary benefits have been sanctioned and payment authorised on 22.07.2007. There is no delay other than the statutory prescription of three years. Even on considering Rule 3A(a) of Part III KSR, the pensionary benefits were disbursed within a period of 3 years and therefore, the petitioner is not being entitled for penal interest.
Therefore the High Court pointed out that the service benefits delayed due to judicial proceedings are not subject to penal interest, relying on the judgement in R Muraleedharan v State of Kerala [ 2015 (3) KLT 755] and some others.
