Page No.# 1/18 vs The State Of Assam And 3 Ors on 26 March, 2026

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    Gauhati High Court

    Page No.# 1/18 vs The State Of Assam And 3 Ors on 26 March, 2026

                                                                    Page No.# 1/18
    
    GAHC010088542025
    
    
    
    
                                                               2026:GAU-AS:4345
    
                          THE GAUHATI HIGH COURT
      (HIGH COURT OF ASSAM, NAGALAND, MIZORAM AND ARUNACHAL PRADESH)
    
                            Case No. : WP(C)/2252/2025
    
             SRI RANJAN KUMAR DAS
             SO LATE UMESH CHANDRA DAS
             R/O HOUSE NO. 111/D, DR. B.K. KAKATI ROAD, ULUBARI GUWAHATI
             781007 DISTRICT KAMRUP (M), ASSAM
    
    
    
             VERSUS
    
             THE STATE OF ASSAM AND 3 ORS.
             REPRESENTED BY THE COMMISSIONER AND SECRETARY TO THE
             GOVERNMENT OF ASSAM, FISHERY DEPARTMENT, DISPUR, GUWAHATI,
             PIN-781006, KAMRUP(M) DISTRICT, ASSAM
    
             2:THE CHAIRMAN
             ASSAM FISHERIES DEVELOPMENT CORPORATION LTD
             V.I.P ROAD
              CHACHAL
              GUWAHATI
              PIN- 781036
              KAMRUP(M) DISTRICT
             ASSAM.
    
             3:ASSAM FISHERIES DEVELOPMENT CORPORATION LIMITED
              REPRESENTED BY ITS MANAGING DIRECTOR
             VIP ROAD
              CHACHAL
              GUWAHATI
              PIN- 781036 KAMRUP(M) DISTRICT
             ASSAM REPRESENTED BY ITS MANAGING DIRECTOR.
    
             4:THE COMMISSIONER AND SECRETARY
             TO THE GOVERNMENT OF ASSAM
              FINANCE DEPARTMENT
                                                                            Page No.# 2/18
    
                 DISPUR
                 GUWAHATI-78100
    
    Advocate for the Petitioner   : MR. S K GOSWAMI, MR. R SHARMA,MR. B K GOSWAMI
    
    Advocate for the Respondent : GA, ASSAM, SC, FINANCE,SC, FISHERY
    
    
    
    
                 Linked Case : WP(C)/2254/2025
    
                SRI BASANTA KAKATI
                SO LATE HALADHAR KAKATI
                R/O 2 NO MATHGHARIA
                MOTHER TERESA ROAD
                SIV MANDIR PATH
                GUWAHATI-781020 KAMRUP (M)
                ASSAM
    
    
                 VERSUS
    
                THE STATE OF ASSAM AND 3 ORS.
                REPRESENTED BY THE COMMISSIONER AND SECRETARY TO THE
                GOVERNMENT OF ASSAM
                FISHERY DEPARTMENT
                DISPUR
                GUWAHATI
                PIN-781006
                KAMRUP(M) DISTRICT
                ASSAM
    
                2:THE CHAIRMAN
                FISHERIES DEVELOPMENT CORPORATION LTD
                V.I.P ROAD
                 CHACHAL
                 GUWAHATI
                 PIN- 781036
                 KAMRUP(M) DISTRICT
                ASSAM
                 REPRESENTED BY ITS MANAGING DIRECTOR.
    
                3:ASSAM FISHERIES DEVELOPMENT CORPORATION LIMITED
                REPRESENTED BY ITS MANAGING DIRECTOR
                VIP ROAD
                                                         Page No.# 3/18
    
    CHACHAL
    GUWAHATI
    PIN- 781036 KAMRUP(M) DISTRICT
    ASSAM REPRESENTED BY ITS MANAGING DIRECTOR.
    
    4:THE COMMISSIONER AND SECRETARY
    TO THE GOVERNMENT OF ASSAM
    FINANCE DEPARTMENT. DISPUR
    GUWAHATI-781006
    ------------
    

    Advocate for : MR. S K GOSWAMI
    Advocate for : GA
    ASSAM appearing for THE STATE OF ASSAM AND 3 ORS.

    Linked Case : WP(C)/2255/2025

    SPONSORED

    SRI TARINI DEKA
    S/O DAYARAM DEKA
    R/O GANESH MANDIR PATH
    NOONMATI
    GUWAHATI- 781020 DISTRICT KAMRUP (M)
    ASSAM

    VERSUS

    THE STATE OF ASSAM AND 3 ORS.

    REPRESENTED BY THE COMMISSIONER AND SECRETARY TO THE
    GOVERNMENT OF ASSAM
    FISHERY DEPARTMENT
    DISPUR
    GUWAHATI
    PIN-781006
    KAMRUP(M) DISTRICT
    ASSAM

    2:THE CHAIRMAN
    ASSAM FISHERIES DEVELOPMENT CORPORATION LTD
    V.I.P ROAD
    CHACHAL
    GUWAHATI
    PIN- 781036
    KAMRUP(M) DISTRICT
    ASSAM.

    3:ASSAM FISHERIES DEVELOPMENT CORPORATION LIMITED
    Page No.# 4/18

    REPRESENTED BY ITS MANAGING DIRECTOR
    VIP ROAD
    CHACHAL
    GUWAHATI
    PIN- 781036 KAMRUP(M) DISTRICT
    ASSAM REPRESENTED BY ITS MANAGING DIRECTOR.

    4:THE COMMISSIONER AND SECRETARY
    TO THE GOVERNMENT OF ASSAM
    FINANCE DEPARTMENT. DISPUR
    GUWAHATI-781006

    ————

    Advocate for : MR. S K GOSWAMI
    Advocate for : GA
    ASSAM appearing for THE STATE OF ASSAM AND 3 ORS.

    Linked Case : WP(C)/2253/2025

    SRI DEVA BARMAN
    S/O LATE JADAB CHANDRA BARMAN R/O RAM DHENU PATH
    VIP ROAD
    AMARTAL
    SIXMILE
    GUWAHATI-781022 DISTRICT- KAMRUP(M)
    ASSAM

    VERSUS

    THE STATE OF ASSAM AND 3 ORS.

    REPRESENTED BY THE COMMISSIONER AND SECRETARY TO THE
    GOVERNMENT OF ASSAM
    FISHERY DEPARTMENT
    DISPUR
    GUWAHATI
    PIN-781006
    KAMRUP(M) DISTRICT
    ASSAM

    2:THE CHAIRMAN
    ASSAM FISHERIES DEVELOPMENT CORPORATION LTD
    V.I.P ROAD
    CHACHAL
    GUWAHATI
    PIN- 781036
    KAMRUP(M) DISTRICT
    Page No.# 5/18

    ASSAM.

    3:ASSAM FISHERIES DEVELOPMENT CORPORATION LIMITED
    REPRESENTED BY ITS MANAGING DIRECTOR
    VIP ROAD
    CHACHAL
    GUWAHATI
    PIN- 781036 KAMRUP(M) DISTRICT
    ASSAM REPRESENTED BY ITS MANAGING DIRECTOR

    4:THE COMMISSIONER AND SECRETARY
    TO THE GOVERNMENT OF ASSAM
    FINANCE DEPARTMENT. DISPUR
    GUWAHATI-781006

    ————

    Advocate for : MR. S K GOSWAMI
    Advocate for : GA
    ASSAM appearing for THE STATE OF ASSAM AND 3 ORS.

    :::BEFORE:::

    HON’BLE MR. JUSTICE KARDAK ETE

    Date on which judgment is reserved : 18.03.2026
    Date of pronouncement of judgment : 26.03.2026
    Whether the pronouncement is of the
    Operative part of the judgment : N/A
    Whether the full judgment has been
    Pronounced : Yes
    Page No.# 6/18

    Judgment & Order (CAV)

    Heard Mr. S. K. Goswami, learned counsel for the petitioners. Also heard Mr.
    P. Sarma, learned Standing Counsel, AFDCL and Mr. R. Borpujari, learned
    Standing Counsel, Finance Department.

    2. The challenge made in these writ petitions is to the order dated 19.03.2025
    issued by the Managing Director of Assam Fishery Development Corporation
    Limited (hereinafter referred to as “AFDCL”), whereby it is decided not to
    release any pensionary benefits to the four retired employees of the
    Corporation, i.e., the petitioners herein, on the ground of a pending Vigilance
    and Enforcement Directorate case, as there is a provision for attachment of
    property and the case is under investigation. The petitioners have prayed for a
    direction to release their gratuity in terms of the Payment of Gratuity Act, 1972
    (in short, the “Gratuity Act“), as well as arrear salary for the period from April,
    2016 to March, 2020.

    3. Having considered that these writ petitions involve similar issues on facts
    and in law, same were heard analogously and are being disposed of by this
    common judgment and order.

    4. The case, in brief, is that the petitioners were appointed as Account
    Assistants and Accountant vide orders dated 06.11.1984, 25.04.1988,
    02.12.1987 and 03.12.1987 in AFDCL. The petitioners, upon attaining the age of
    superannuation, had retired from service as Internal Auditor, Accountant and
    Accounts Officers on 31.03.2023, 31.12.2022, 31.01.2022 and 30.11.2023,
    respectively. On their retirements, the petitioners have been sanctioned monthly
    Page No.# 7/18

    pension of Rs. 3,948/- (Rupees Three Thousand Nine Hundred Forty-Eight), Rs.
    3,781/- (Rupees Three Thousand Seven Hundred Eighty-One), Rs. 3,992/-
    (Rupees Three Thousand Nine Hundred Ninety-Two) and Rs. 3,472/- (Rupees
    Three Thousand Four Hundred Seventy-Two) by the Assistant Provident Fund
    Commissioner (Pension), Guwahati. The petitioners have also received their
    respective leave encashment, which was released by the Managing Director,
    AFDCL.

    5. On account of certain financial anomalies in AFDCL, a high-level enquiry
    was conducted by the Government of Assam regarding the illegal transfer of
    funds of the Corporation in the names of various officials of the Corporation,
    contractors and suppliers. Based on the enquiry report, the Joint Secretary to
    the Government of Assam, Fishery Department, directed the Managing Director
    of AFDCL vide letter dated 07.02.2022 to initiate legal and administrative
    actions. It has been observed that despite the objections/ views expressed by
    the Accounts Branch of AFDCL against such illegal transfer of funds, the
    sanctioning authority had granted such advances, ignoring the advice of the
    Accounts Branch.

    6. It is projected by the petitioners that, being Internal Auditor, Accounts
    Officers and Accountant, had raised objection as regards the transfer of funds of
    the corporation. However, ignoring such objection, the authorities of the
    Corporation released advance amount in the names of different officials at their
    own cost and responsibility. In that regard, the officials of the Accounts Branch
    jointly submitted a note to the Managing Director on 25.10.2019 to check
    unproductive expenditure in AFDCL. The petitioners are in no way connected
    with any financial irregularities or anomalies; if any advance amounts were
    Page No.# 8/18

    released to officials, contractors, or suppliers, the same was done pursuant to
    the decision of the higher authorities of the Corporation.

    7. The petitioners contend that they are entitled to gratuity in terms of the
    Gratuity Act. However, the respondent authorities in AFDCL have not released
    the said amount despite repeated representations. Such non-release of the
    gratuity amount has caused serious financial hardship to the petitioners, as they
    are compelled to depend on the meagre pension amount being received by
    them. It is contended that AFDCL has an arrangement with the Life Insurance
    Corporation of India (LICI) to create a corpus through contributions made by
    the Corporation for payment of gratuity to its employees upon superannuation
    in accordance with the Gratuity Act and accordingly, LICI has released and
    transferred the gratuity amount due to the employees of AFDCL, including the
    petitioners, to the Corporation, which are presently lying with AFDCL.

    8. Mr. S. K. Goswami, learned counsel for the petitioners, submits that till date
    the petitioners have not been issued any show cause notice with regard to any
    case, nor have any disciplinary proceedings been initiated against them. It is
    only after nearly two years of the petitioners’ retirement that the Managing
    Director, vide the impugned order dated 19.03.2025, has decided not to release
    any pensionary benefits to the petitioners on the purported ground of pendency
    of a Vigilance and Enforcement Directorate case, without considering that the
    petitioners are not at all involved in the said case.

    9. Mr. Goswami, learned counsel submits that as per the Gratuity Act, it is
    clearly provided that gratuity shall be payable to an employee who has rendered
    continuous service for not less than five years upon superannuation. The
    employer shall arrange to pay the amount of gratuity within 30 days from the
    Page No.# 9/18

    date it becomes payable to the employee and in case of default, the employer
    shall be liable to pay simple interest. Therefore, the petitioners are entitled to
    gratuity after their retirement from service and the same cannot be withheld
    and such withholding on the ground of pendency of investigation of some case
    and proceedings, in which the petitioners are not involved, is a violation of the
    Gratuity Act.

    10. He submits that the gratuity of the petitioners cannot be withheld if the
    employees have not been terminated from service, as specified under the
    relevant provisions of the Gratuity Act. In the present case, neither have the
    petitioners been terminated from service, much less has any show cause notice
    been issued to them, nor have any departmental proceedings been initiated
    against them. Therefore, the decision not to release any pensionary benefits to
    the petitioners on the purported ground of pendency of a Vigilance and
    Enforcement Directorate case is illegal and liable to be set aside and a direction
    may be issued to the respondent AFDCL to release the pensionary benefits,
    including gratuity, forthwith.

    11. In support of his submissions, Mr. Goswami, learned counsel for the
    petitioners, has placed reliance on the following judgments:

    (i). State of Jharkhand vs. Jintendra Kumar Srivastava, reported in
    (2013) 12 SCC 210.

    (ii). Dr. Hiralal vs. State of Bihar, reported in (2020) 4 SCC 346.

    (iv). Smti Bahni Sikha Dutta vs. the State of Assam , in
    WP(C)5369/2017.

    Page No.# 10/18

    12. Mr. Goswami, learned counsel has also relied upon the judgement in the
    case of Jorsing Govind Vanjari vs. Divisional Controller Maharashtra
    State Road Corporation
    , reported in (2017) 2 SCC 12, to project that for
    the purpose of denying gratuity to an employee, it is not sufficient that the
    alleged misconduct constitutes an offence involving moral turpitude as per the
    report of domestic enquiry. It must further be established that the services of
    the employee were terminated on account of such misconduct which constitutes
    an offence involving moral turpitude.

    13. On the other hand, Mr. P. Sarma, learned Standing Counsel for AFDCL,
    submits that the petitioners have retired from the sensitive post of Internal
    Audit, which forms part of the Accounts Committee of AFDCL and are alleged to
    have been involved in siphoning and illegal disbursement of funds, as implicated
    in Vigilance Case No. ACB P.S. Case No. 30/2023, under Sections 120B/406/409
    IPC read with Sections 13(1)(a)/13(2) of the Prevention of Corruption Act, 1988.
    He submits that the cases are not mere minor infractions but involved grave
    charges of criminal conspiracy, criminal breach of trust by a public servant and
    corruption, which are directly linked with their official duties as Accountants,
    Internal Auditors and Accounts Officers. The involvement of the petitioners,
    being officials/officers of the Accounts Branch in the case, cannot be ruled out.

    14. He submits that the offences charged would fall under “scheduled
    offences” under Part A of the Schedule to the Prevention of Money Laundering
    Act, 2002
    (hereinafter referred to as the PMLA). The gravity of the charges is
    further amplified by the fact that the matter is under active investigation by the
    Enforcement Directorate under the provisions of the PMLA to trace and
    potentially attach proceeds of crime derived from these underlying criminal
    Page No.# 11/18

    activities. Therefore, non-release of the terminal benefits, including gratuity of
    the petitioners, by the impugned order dated 19.03.2025 is not illegal but has
    been made prudently, legally and responsibly to secure financial interests and
    public funds. Such action is warranted, particularly in light of the ongoing
    investigation by the ED under the PMLA, as the provisions allow attachment of
    assets, including benefits that may be deemed proceeds of crime, given that the
    proceedings are yet to be concluded. Therefore, there is no illegality in
    withholding the pensionary benefits of the petitioners pending investigation by
    the ED under the PMLA.

    15. Mr. P. Sarma, learned Standing Counsel, submits that a person not accused
    or prosecuted in a scheduled offence can still be prosecuted for the offence of
    money laundering, provided the ingredients of Section 3 of the PMLA are
    satisfied.

    16. In support of his submission, Mr. P. Sarma, learned Standing Counsel, has
    relied on the following Case Laws:

    (i) Pavana Dibbur vs. The Directorate of Enforcement reported in
    (2023) 15 SCC 91,

    (ii) Vem Krishna Keerthan vs Directorate of Enforcement in Criminal
    Petition No. 9314 of 2022, of the Hon’ble Telangana High Court,

    (iii) M. Venkatesan vs. The Directorate of Enforcement, of the Hon’ble
    Madras High Court,

    (iv) of Vijay Madanlal Choudhary & Ors. vs….., reported in (2023) 12
    SCC 1.

    Page No.# 12/18

    17. Due consideration has been made to the submissions of the learned
    counsel for the parties and have also perused the materials available on record.

    18. The petitioners, who were working as Account Officers, Internal Auditor
    and Accountant, have retired from the services on attaining the age of
    superannuation on 31.03.2023, 31.12.2022, 31.01.2022 and 30.11.2023,
    respectively. After retirement, they have been receiving monthly pension
    amounts of Rs. 3,948/- (Rupees Three Thousand Nine Hundred Forty-Eight), Rs.
    3,781/- (Rupees Three Thousand Seven Hundred Eighty-One), Rs. 3,992/-
    (Rupees Three Thousand Nine Hundred Ninety-Two) and Rs. 3,472/- (Rupees
    Three Thousand Four Hundred Seventy-Two) only respectively.

    19. Due to allegation of certain financial anomalies and irregularities in AFDCL,
    a committee was constituted to enquire into the same. On due examination of
    the report of the enquiry committee, the Joint Secretary to the Government of
    Assam, Fishery Department, by a communication dated 07.02.2022 addressed
    to the Managing Director, AFDCL, directed initiation of appropriate legal and
    administrative action against the officials involved in such illegal transfer of
    funds and also to lodge an FIR. The allegation pertains to illegal transfer of
    funds of the Corporation in the names of various officials, including the Ex-
    Chairman/Vice-Chairman, as well as contractors and suppliers. It is indicated in
    the said communication that, as per the report, despite objections/views raised
    by the Accounts Branch of the Corporation against such advances, the
    sanctioning authority had granted the same by ignoring the advice of the
    Accounts Branch, which constitutes a serious financial irregularity.

    20. Pursuant thereto, the Managing Director, AFDCL, vide communication dated
    21.09.2022 filed an FIR before the Officer-in-Charge-cum-Superintendent of
    Page No.# 13/18

    Police, Vigilance Case and Anti-Corruption, Assam, mentioning clearly the names
    of 14 former Managing Directors and other officers/officials of the AFDCL.
    However, the petitioners are not named in the F.I.R. Consequent thereto,
    Vigilance Case No. ACB P.S. No. 30/2023 was registered under Sections
    120B
    /406/409 of the IPC read with Sections 13(1)(a)/13(2) of the Prevention of
    Corruption Act, 1988 and subsequently, to the ED under the PMLA, which is
    pending investigation.

    21. The petitioners have brought on record a note jointly submitted by them on
    25.10.2019, which is reproduced herein below:

    “Managing Director,

    Regarding financial matters of the corporation

    As per the accounts of the corporation finalized for the year 2015 and 2016,
    there was a profit of Rs 572.66 lakhs and Rs 507.48 lakhs respectively. It can’t be
    assessed the quantum of profit for the years 2017-2018 and 2018-2019 as the
    accounts of these years are not yet finalized. But it is quite certain to earn some profit
    in those two years. But in the current year (2019-2020), a large sum of money has
    been spent out of the corporation’s fund. If unproductive expenditure is not checked,
    it will have adverse effect on the financial position of the corporation and there would
    be a significant loss to the corporation in the current year. It is worthwhile to note that
    the corporation earning profit continuously since 2001-2002 may have to face audit
    objections and adverse reaction from Registrar of Companies if the corporation has to
    face loss in a year all of a sudden. As such, it has become necessary to avoid
    unnecessary expenditure.

    It is for your kind appraisal from the accounts branch of the corporation in the
    greater interest of the corporation.

    Sd/- Deba Barman, Accountant

    Sd/- Ranjan Kr Das, Internal Auditor,

    Sd/- Basanta Kakat, Asstt. Accounts Officer

    Sd/- Tarini Deka, Accounts Officer”

    22. Perusal of the above note submitted by the petitioners reveals that, if
    Page No.# 14/18

    unproductive expenditure is not checked, it is likely to adversely affect the
    financial position of the corporation and may result in significant losses during
    the current year. It is further reflected that the corporation, which has been
    consistently earning profits, may face audit objections and adverse remarks
    from the concerned authorities in the event of an abrupt loss. Accordingly, the
    petitioners suggested that unnecessary expenditure be avoided.

    23. On consideration of the matter, the issue required to be determined in the
    present proceeding is as to whether the respondent AFDCL would have any
    authority to withhold the release of pensionary benefits, including gratuity, of
    the petitioners on account of the pending investigation by the ED under the
    PMLA. To appreciate, it would be apposite to refer to and consider the
    relevant provisions of the Payment of Gratuity Act, 1972.

    24. Under Section 4(1), it is laid down that gratuity shall be payable to an
    employee on the termination of his employment after he has rendered
    continuous service for not less than five years, on his superannuation,
    retirement, resignation, or on his death or disablement due to accident or
    disease. Further, under Section 7(3A), gratuity is required to be released within
    thirty days from the date it becomes payable to the employee, and in case of
    default, the employer shall be liable to pay simple interest to the employee.

    25. Section 4(6) provides that gratuity of an employee can be withheld, when
    service of the employee has been terminated for any act, wilful omission or
    negligence causing damage or loss or destruction of the employer’s property, by
    forfeiting it wholly or partially to the extent of the damage or loss so caused. It
    further provides that gratuity may be forfeited where the services of such
    employee have been terminated for his riotous or disorderly conduct or any
    Page No.# 15/18

    other act of violence. Section 13 protects gratuity to the extent that no gratuity
    payable under the Act shall be liable to attachment in execution of any decree
    or order of any civil, revenue or criminal court.

    26. In the present case, undisputedly the services of the petitioners have not
    been terminated, nor are there any allegations of willful omission, negligence, or
    of causing any damage, loss or destruction of the property of the employer, or
    of riotous or disorderly conduct or any other act of violence. Though the FIR has
    been filed against ex-employees, officials and officers, the names of the
    petitioners do not find mention therein. The investigation in Vigilance Case No.
    ACB P.S. Case No. 30/2023 as well as the proceedings initiated by the ED is still
    pending and nothing has been brought on record to indicate any involvement of
    the petitioners in the alleged financial irregularities.

    27. Law is well settled that the right to receive pension is a right to property
    protected under Article 300A of the Constitution of India, which provides that no
    person shall be deprived of his property save by authority of law. Pension is
    payable to an employee in consideration of long, continuous and dedicated
    service and cannot be treated as a bounty payable at the will and pleasure of
    the employer. The right to receive pension and other retirement benefits is thus
    a valuable right vested in an employee.

    28. The Hon’ble Supreme Court in catena of judgements including in the case
    of Jitendra Kumar Srivastava (supra), Jorsing Govind Vanjari, (supra), has
    held that pension and gratuity are valuable rights protected under Article 300A
    of the Constitution of India and cannot be withheld by executive or
    administrative instructions in the absence of statutory authority. It has further
    been held that mere pendency of departmental, vigilance or criminal
    Page No.# 16/18

    proceedings is not a valid ground to deny such benefits, unless the statutory
    conditions permitting forfeiture or withholding are satisfied or a finding of guilt
    is recorded in accordance with law.

    29. In the present case, the petitioners have been receiving a meagre amount
    of pension and leave encashment to which they are entitled. However, the
    remaining pensionary benefits, including gratuity, are sought to be withheld on
    the purported ground of pendency of an investigation in Vigilance Case No. ACB
    P.S. Case No. 30/2023 and the subsequent proceedings initiated by the ED
    under the PMLA, wherein provision for attachment of property is provided. The
    petitioners are not Government servants, but retired employees of AFDCL, who
    have superannuated from service and are presently on a meagre pension. Under
    these circumstances, withholding of gratuity, to which the petitioners are
    otherwise entitled, in the absence of any ground permissible under the law to
    withhold, would be impermissible and illegal.

    30. The services of the petitioners have not been terminated, nor are there any
    allegations of willful omission, negligence causing damage or loss or destruction
    of the employer’s property, or of riotous or disorderly conduct or any act of
    violence. The only ground cited appears to be the pendency of investigation by
    the ED under the PMLA, wherein provisions exist for attachment of property.
    Mere pendency of such proceedings, without any allegation or material
    indicating the involvement of the petitioners, cannot constitute a valid ground
    for withholding pensionary benefits, including gratuity and such action, if
    permitted, would be totally contrary to law.

    31. Regard being had to the judgments relied upon by the respondents in
    Pavana Dibbur (supra), Vem Krishna Keerthan (supra), M. Venkatesan
    Page No.# 17/18

    (supra), Vijay Madanlal Choudhary (supra) and Mohammad Wajid (supra),
    perusal of the same indicates the principles relating to the scope and ambit of
    proceedings under the PMLA, the independent nature of the offence of money
    laundering and the permissibility of simultaneous investigation or prosecution in
    respect of predicate/scheduled offences. However, the said decisions are
    rendered in a completely different context and do not deal with the issue of
    entitlement to pensionary benefits or gratuity, nor do they recognise any
    authority in law to withhold such statutory benefits merely on account of
    pendency of investigation under the PMLA. In the present case, there is
    admittedly no material to show that the petitioners are accused in the predicate
    offence or that any finding of guilt has been recorded against them, nor is there
    any statutory provision brought to the notice of this Court enabling withholding
    of gratuity on such ground. Thus, the reliance placed on the aforesaid
    judgments does not come to the aid of the respondents in justifying the
    impugned action of withholding pensionary benefits.

    32. In the light of the above discussion, this Court is of the considered view
    that the decision to withhold the pensionary benefits, including gratuity, on the
    ground of pendency of the Vigilance and ED case, coupled with the alleged
    authority to attach property, is illegal and unsustainable. Accordingly, the
    impugned order dated 19.03.2025 issued by the Managing Director of AFDCL is
    hereby set aside and quashed.

    33. Consequently, the respondent authorities are directed to release the
    pensionary benefits, including gratuity, to the petitioners expeditiously and, in
    any case, positively within 30 (thirty) days from the date of receipt of a certified
    copy of this order. It is, however, made clear that this Court has not expressed
    Page No.# 18/18

    any opinion on the merits of the Vigilance and ED case, which is pending
    investigation. The concerned authorities shall be at liberty to proceed with the
    investigation in accordance with law.

    34. The writ petitions stand allowed and disposed of. However, there shall be
    no order as to cost(s).

    JUDGE

    Comparing Assistant



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