SRINAGAR: The High Court of Jammu Kashmir and Ladakh has directed the Jammu and Kashmir Projects Construction Corporation (JKPCC) to release the withheld retiral benefits and unpaid salary of its former General Manager, Vikar Mustafa Shonthu, holding that the corporation had no legal basis to continue withholding the dues after his discharge in a criminal case.
Justice Sanjay Dhar, while allowing a writ petition filed by Shonthu, ordered the respondents to release all terminal benefits along with unpaid salary within two months. The court further ruled that if the amount is not released within the stipulated period, it shall carry interest at the rate of six per cent per annum from the date of filing of the petition until realization.
Shonthu, who retired from service in 2021 as General Manager of JKPCC after having also served as Incharge Managing Director, had challenged an enquiry report, subsequent recommendations of the corporation, and a Board decision approving the withholding of his retiral benefits. According to the petition, leave salary of about Rs 10 lakh, gratuity of around Rs 20 lakh and salary withheld since November 2020 had not been released.
The case stemmed from a fact-finding inquiry that led to registration of FIR No. 10/2019 by the Crime Branch regarding his appointment as Incharge Managing Director. A departmental inquiry was also initiated against him, and the corporation later decided to withhold his retiral benefits pending the outcome of criminal proceedings.
During the hearing, the court noted that Shonthu had already been discharged in the criminal case arising out of FIR No. 10/2019 and that the charge sheet filed against him had been dismissed by the Special Judge, Anti-Corruption, Srinagar. The court observed that once the petitioner stood discharged, the respondents could not continue to withhold his retiral benefits on that basis.
The court also examined the corporation’s contention that another Crime Branch case, FIR No. 44/2021, concerning alleged irregularities in promotion and sanction of leave, remained under investigation. However, Justice Dhar held that mere pendency of an investigation without a charge sheet could not be treated as a judicial proceeding warranting withholding of pensionary benefits.
Referring to Article 168-A of the Jammu and Kashmir Civil Service Regulations, the court observed that recoveries from pension or retiral benefits can be made only when losses caused to the employer through negligence or fraud are established in departmental or judicial proceedings. The judgment noted that JKPCC had neither assessed any loss allegedly caused by the petitioner nor claimed that his actions had resulted in financial loss to the corporation.
The court further recorded that it was an admitted position that Shonthu had neither drawn the salary attached to the post of Managing Director nor any charge allowance. Consequently, his alleged actions had not resulted in any monetary gain to him or loss to the corporation.
Holding that the respondents were not justified in withholding either the terminal benefits or salary dues, the court allowed the petition and directed immediate release of all pending payments.
