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Issues Involved:
1. Interpretation of Rule 9 of the Central Civil Services (Pension) Rules, 1972 regarding the withdrawal of pension and gratuity. 2. Permissibility of judicial review concerning the proportionality of punishment imposed by the competent authority. Issue-wise Detailed Analysis: Issue 1: Interpretation of Rule 9 of the Central Civil Services (Pension) Rules, 1972 The primary question was whether Rule 9, which allows for the withholding or withdrawal of pension, also extends to the withdrawal of gratuity. Rule 9 refers to the President's power to withhold or withdraw pension in cases of grave misconduct or negligence. The Tribunal previously held that the definition of 'pension' in Rule 3, which includes 'gratuity,' was not applicable to Rule 9. However, the Supreme Court referenced the case Jarnail Singh vs. Secretary, Ministry of Home Affairs, which established that 'pension' in Rule 9 includes gratuity, as the term was not used in contradistinction to gratuity. The Court clarified that the amendment in Rule 9(1) by the Central Civil Services (Pension) Third Amendment Rules, 1991, which explicitly included 'pension or gratuity, or both,' was clarificatory, removing doubts from prior court decisions. Thus, the Tribunal's interpretation was incorrect, and the withholding of gratuity under Rule 9 was deemed permissible. Issue 2: Judicial Review and Proportionality of Punishment The second issue addressed whether the Tribunal could interfere with the quantum of punishment on the grounds of it being 'too severe' or 'disproportionate' to the misconduct. The Court examined the principle of proportionality in administrative law, referencing key cases like Ranjit Thakur vs. Union of India, which recognized proportionality as part of judicial review. However, the Court noted that in cases not involving fundamental freedoms, the role of courts is secondary, focusing on whether the decision was irrational or illegal rather than substituting their judgment for the administrator's. The Court reiterated that unless the punishment imposed is 'shockingly disproportionate' or in 'outrageous defiance of logic,' judicial bodies should not interfere. The decision in B.C. Chaturvedi vs. Union of India was cited, emphasizing that courts should only intervene if the punishment shocks the conscience, suggesting reconsideration or, in rare cases, substituting the penalty. In this case, the Tribunal's decision to alter the punishment was not supported by findings that met the Wednesbury or CCSU standards of irrationality or procedural impropriety. Thus, the Tribunal's interference with the quantum of punishment was overturned, and the original punishment by the departmental authorities was reinstated. The Court concluded that the Tribunal's decision was incorrect in substituting its own view on the severity of the penalty, and the appeal by the Union of India was allowed, restoring the departmental authorities' decision.
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