- 1 - HC-KAR NC: 2025:KHC:49076-DB WA No. 1321 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 25TH DAY OF NOVEMBER, 2025 PRESENT THE HON'BLE MR. JUSTICE D K SINGH AND THE HON'BLE MS. JUSTICE TARA VITASTA GANJU WRIT APPEAL NO. 1321 OF 2024 (S-R) BETWEEN: 1. BEML LIMITED BEML SOUDHA, NO. 23/1, 4TH MAIN ROAD, S.R.NAGAR, BENGALURU-560 027. REPRESENTED BY ITS CHAIRMAN AND MANAGING DIRECTOR, NOW REPRESENTED BY AGM (HR). 2. THE UNION OF INDIA, THROUGH DEPARTMENT OF DEFENCE PRODUCTION MINISTRY OF DEFENCE, GOVERNMENT OF INDIA, SOUTH BLOCK, NEW DELHI-110 011. REPRESENTED BY SECRETARY. NOW REPRESENTED BY DEPUTY SECRETARY. …APPELLANTS (BY SRI. SYED KASHIF ALI., ADVOCATE FOR SRI. PRADEEP.S.SAWKAR., ADVOCATE) AND: 1. V.R.S.NATARAJAN S/O S.V.RANGASWAMY, AGED ABOUT 71 YEARS, RESIDING AT MEENAKSHI, FLATS NO.35, CENATOP ROAD, 1ST STREET, CHENNAI-600 018. - 2 - HC-KAR NC: 2025:KHC:49076-DB WA No. 1321 of 2024 2. DEPARTMENT OF PERSONNEL AND TRAINING (DOPT), THROUGH ITS SECRETARY, MINISTRY OF PERSONNEL, PUBLIC GRIEVANCES AND PENSION NORTH BLOCK, NEW DELHI-110 001. …RESPONDENTS (BY SRI. P.S.RAJAGOPAL., SENIOR COUNSEL FOR SRI. ANAND.K.R., ADVOCATE FOR R1; SRI. H.SHANTHI BHUSHAN., DSGI FOR R2) THE WRIT APPEAL FILED UNDER SECTION 4 OF THE KARNATAKA HIGH COURT ACT, 1961, PRAYING TO SET ASIDE THE FINAL ORDER DATED 25.06.2024 PASSED BY THE LEARNED SINGLE JUDGE IN WP NO.19822/2014 AND ALLOW THIS APPEAL AND CONSEQUENTLY DISMISS THE WRIT PETITION. THIS APPEAL, COMING ON FOR ORDERS, THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE D K SINGH & HON'BLE MS. JUSTICE TARA VITASTA GANJU ORAL JUDGMENT (PER: HON'BLE MR. JUSTICE D K SINGH) This writ appeal has been filed impugning the judgment and order dated 25.06.2024 passed by the learned Single Judge in W.P. No. 192 of 2014. - 3 - HC-KAR NC: 2025:KHC:49076-DB WA No. 1321 of 2024 2. The parties are referred to by their ranking in the writ appeal for the sake of convenience. 3. The petitioner was working as the Chairman and Managing Director of BEML Ltd., a Government of India enterprise under the Ministry of Defence. Three FIRs came to be registered against him by the CBI. In all three cases, after investigation, the Investigating Officer submitted closure reports ('B' Reports) in the petitioner's favour, as no evidence of his culpability was discovered. The Court accepted the final reports in respect of two FIRs on 10.09.2012 and 29.09.2012. Regarding the third FIR, a closure report was filed on 24.11.2014. It is not known from the record whether this last report has been accepted by the Court or not. 4. The petitioner was placed under suspension by an order dated 11.06.2012. He remained under suspension until he attained the age of superannuation on 30.09.2012. Notably, no disciplinary proceedings were initiated against him during his service. - 4 - HC-KAR NC: 2025:KHC:49076-DB WA No. 1321 of 2024 5. As his retirement benefits were withheld, the petitioner filed W.P. No. 192 of 2014, seeking a writ of mandamus to direct the respondents to release his terminal benefits amounting to Rs. 53,82,312/- with interest at 18% per annum from 01.10.2012, the date they became due. 6. The learned Single Judge, in paragraph 12 of the impugned judgment, observed as follows: “12. Upon careful consideration of the documents placed on record and submission made by both the parties, this Court is unequivocally persuaded that action of respondent Nos.1 and 2 are manifestly unfair and warrant intervention. The records clearly reveal that no departmental proceedings were initiated against petitioner while he was in service. The long duration of 12 years during which petitioner has been deprived of his legitimate claim over terminal benefits and gratuity is patently excessive. The petitioner was placed under suspension on the basis of allegations linked to the three registered crimes. The petitioner’s suspension was ostensibly predicated of grave allegations. However, it is noteworthy that almost 12 years have transpired since imposition of suspension during which no substantial evidence has surfaced against the petitioner. Furthermore, it has emerged that in ongoing criminal proceedings, the Investigating Officer/CBI has absolved the petitioner of any involvement in the alleged offences as evidenced by the charge sheet provided by the petitioner before this Court.” - 5 - HC-KAR NC: 2025:KHC:49076-DB WA No. 1321 of 2024 7. Learned counsel for the appellant/respondents submits that under Rule 42 of the relevant Conduct, Discipline and Appeal Rules, 1976, a vigilance clearance is required even for a retiring employee. He contends that as one criminal case was pending at the time of retirement, the necessary clearance could not be given and therefore justified it is to withhold the retirement dues. 8. We take note that, in respect of the last case, the closure report was filed in November 2014. At the very least, the respondents should have released the retirement dues after this development. However, even after the investigating agency filed a report absolving the petitioner, the respondents chose to withhold the benefits, compelling him to approach this Court. 9. It is well-settled that gratuity is not a bounty but a statutory right accruing to an employee for services rendered. It becomes due and payable within 30 days of retirement. Therefore, we hold that the gratuity earned by the petitioner must be paid with statutory interest from - 6 - HC-KAR NC: 2025:KHC:49076-DB WA No. 1321 of 2024 01.11.2012 (i.e., 30 days after retirement) until the date of actual payment. 10. Regarding the Provident Fund (PF), it is not in dispute that the respondents have not credited the employer's contribution. They are directed to pay both the outstanding employer's contribution and the interest accrued thereon as per the relevant PF regulations. 11. For all other terminal benefits (excluding gratuity and PF), the petitioner is entitled to payment with simple interest at the rate of 6% per annum from 01.12.2014 (a reasonable period after the final closure report) until the date of payment. 12. In the result, we pass the following order: 13. The writ appeal is dismissed, and the judgment of the learned Single Judge is upheld, subject to the modifications regarding interest specified below. The respondents are directed to pay the petitioner: Gratuity with statutory interest from 01.11.2012. - 7 - HC-KAR NC: 2025:KHC:49076-DB WA No. 1321 of 2024 Provident Fund dues (employer's contribution) with applicable interest. All other terminal benefits with simple interest at 6% per annum from 01.12.2014. The aforesaid payments shall be made in full within a period of three months from today. (D K SINGH) JUDGE (TARA VITASTA GANJU) JUDGE TIN List No.: 1 Sl No.: 23 Digitally signed by DINESH KUMAR SINGH Location: HIGH COURT OF KARNATAKA Digitally signed by TARA VITASTA GANJU Location: HIGH COURT OF KARNTAKA