CHANDIGARH, April 10 — The Chandigarh Bench of the Central Administrative Tribunal has directed the Postgraduate Institute of Medical Education and Research (PGI) to release all retirement benefits to Dr Rakesh Sehgal, former Dean of the institute, within two months.
The tribunal ruled that PGI’s action of withholding Sehgal’s regular pension, gratuity, commutation of pension, and leave encashment lacked legal justification, as no disciplinary or criminal proceedings were pending against him at the time of retirement.
“The action of the respondents in withholding the applicant’s regular pension and retiral benefits is not sustainable in the eyes of law,” noted Tribunal Member Suresh Kumar Batra in the order.
Sehgal had approached the tribunal through his counsel, Karan Singla, challenging a PGI order dated May 3, 2023, which withheld his retirement benefits over pending clarifications related to Goods and Services Tax (GST) deposit details.
Singla argued that Sehgal had retired without any disciplinary, civil, or criminal proceedings initiated against him, either at the time of retirement or thereafter. “There is no legal ground for the institute to delay or withhold his pensionary dues,” he told the Tribunal.
The Bench found PGI’s justification “arbitrary and illegal” and quashed the relevant part of the May 3 order. It further ruled that Sehgal is entitled to interest on the arrears at six percent per annum, starting two months after his retirement and continuing until full payment is made.
The order directs PGI to disburse all pending dues within two months of receiving the judgment.
