Pension penalty unsustainable where inquiry failed to prove grave misconduct, corrupt motive, or government loss.

Withholding 10% of monthly pension for three years was treated as unsustainable where the disciplinary record did not establish doubtful integrity, corrupt motive, statutory lack of devotion to duty, or pecuniary loss to the government. The inquiry report noted that recovery steps had been initiated, that the bonds and bank guarantees were only recovery mechanisms, and that their cancellation caused no revenue loss. The material also negatived habitual deficiency in performance and treated the lapse as a solitary bona fide mistake. Rule 9 of the Central Civil Services (Pension) Rules and Rule 3 of the Conduct Rules were therefore not proved to justify the penalty, and the punishment order and Tribunal order were set aside.

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Issues: Whether the punishment of withholding 10% of monthly pension for three years could be sustained where the inquiry and disciplinary findings did not establish breach of absolute integrity, lack of devotion to duty in the statutory sense, or pecuniary loss to the government.

Analysis: The disciplinary record and the inquiry report recorded no finding of doubtful integrity or corrupt motive. The inquiry officer found that the employee had initiated recovery action, that the bonds and bank guarantees were only a recovery mechanism, and that no revenue loss resulted from their cancellation. The findings also negatived the charge of habitual deficiency in performance and treated the omission as a solitary instance of improper scrutiny or a bona fide mistake. Rule 9 of the Central Civil Services (Pension) Rules, 1972 was invoked, but the record disclosed neither proved grave misconduct nor proved pecuniary loss, and the material did not establish violation of Rule 3(1)(i), Rule 3(1)(ii), or Rule 3(1)(iii) of the Central Civil Services (Conduct) Rules, 1964.

Conclusion: The punishment order was not sustainable, and the writ petition was allowed by setting aside both the punishment order and the Tribunal's order.

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