Release former dean's pension, other benefits, CAT directs PGI

The Central Administrative Tribunal’s Chandigarh bench has ordered PGIMER to release all pending retirement benefits, including regular pension, gratuity, commutation of pension and leave encashment, to former dean Dr Rakesh Sehgal within two months.

No pending proceedings against Dr Sehgal

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The Central Administrative Tribunal ruled that PGIMER illegally withheld Dr Sehgal’s pension and retirement benefits, directing full payment within 2 months plus 6% interest

The court emphasised since no disciplinary/criminal cases were pending against the ex-dean, the institute had no legal basis to withhold his dues, quashing their GST-related justification as arbitrary

In its ruling, the tribunal noted that since no disciplinary or criminal proceedings were pending against Dr Sehgal at the time of retirement, PGIMER’s decision to withhold his benefits was “unsustainable in law”. The bench specifically quashed PGIMER’s May 3, 2023 order linking the release of benefits to GST deposit details, terming this condition “arbitrary and illegal”.

The tribunal further directed that Dr Sehgal be paid interest at 6 per cent per annum on all arrears, calculated from two months after his retirement until the actual payment date.

Dr  Sehgal, represented by counsel Karan Singla, had challenged PGIMER’s withholding of his retirement benefits. Singla argued successfully that in the absence of any pending proceedings against his client, the institute had no legal grounds to withhold the dues.

Tribunal member Suresh Kumar Batra, while pronouncing the order, emphasised that PGIMER must comply with the directions within the stipulated two-month period from receiving the order copy.