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HC quashes Punjab circular denying benefits to retirees with pending cases

Holds travel concession and old age allowance cannot be withheld without statutory backing; directs release of dues within six weeks

4 min readChandigarhUpdated: Apr 6, 2026 10:03 PM IST

High Court quashes Punjab govt circular denying benefits to retirees with pending cases

The court quashed the December 22, 2022 circular and directed the release of all pending old age allowance and travel concession dues within six weeks. (File Photo)

The Punjab and Haryana High Court has struck down a Punjab government circular, dated December 22, 2022, which barred retired employees drawing provisional pension from receiving travel concession and old age allowance while departmental or judicial proceedings were pending against them.

Justice Harpreet Singh Brar allowed a writ petition filed by Nalni Kant and other retired employees of the Punjab State Warehousing Corporation (PSWC), declaring the Finance Department’s circular illegal, arbitrary and violative of constitutional provisions. The court directed the respondents to release all pending dues of old age allowance and travel concession to the petitioners and similarly placed retirees within six weeks. The judgment has been declared applicable in rem, extending the benefit to all identically placed pensioners, whether or not they approached the court.

The petitioners, who retired as warehouse managers, district managers and godown assistants from PSWC, had challenged the 2022 circular after their post-retirement benefits were stopped. PSWC had introduced a pension and gratuity scheme in 1996, with effect from January 1, 1986, placing its employees at par with state government employees for pension and allied benefits, including gratuity, leave travel concession (LTC) and medical facilities.

Under existing rules, state pensioners are entitled to travel concession, equivalent to one month’s basic pension every two years, and old age allowance, an additional pension ranging from 5 per cent at age 65 to 100 per cent at age 100 and above. Rule 6.18 of the Punjab Civil Services Rules (CSR), Volume II, explicitly terms this as “additional pension”.

The 2022 circular, however, directed that these benefits would not be paid to retirees facing pending proceedings and drawing provisional pension, and would be released only upon full exoneration.

Counsel for the petitioners, JP Rana and Sukhmandeep Singh, argued that the circular lacked statutory backing. While the Punjab CSR permits withholding of gratuity and leave encashment during the pendency of proceedings (Rules 2.2(c)(1) and 9.14), no such provision exists for travel concession or old age allowance. They contended that executive instructions cannot override statutory rules and that denying these benefits violated Articles 14, 16 and 300A of the Constitution, as pension is a valuable property right.

The additional advocate general for Punjab and counsel for PSWC defended the circular, saying PSWC employees follow state government instructions. However, they could not point to any statutory rule authorising the withholding of these two benefits.

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In its judgment, the court held that executive or administrative instructions cannot amend or override statutory rules and that a person cannot be deprived of retiral benefits without the authority of law, as mandated under Article 300A.

The court relied on Supreme Court judgments, including Dr Hira Lal v. State of Bihar (2020), and a full bench decision of the high court in Dr Ishar Singh v. State of Punjab (1994), which emphasised that pension rules must be interpreted liberally in favour of retirees to ensure social security in old age.

Justice Brar observed that provisional pension is paid at 100 per cent of the admissible amount and that old age allowance forms part of pension. Withholding it, therefore, effectively reduces pension below the entitled amount without legal authority.

Significant directives

The court quashed the December 22, 2022 circular and directed the release of all pending old age allowance and travel concession dues within six weeks. It held that the benefit would extend to all similarly situated retired employees of PSWC and, by extension, other state entities following Punjab CSR rules.

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The ruling draws a clear distinction: while the state can withhold gratuity and leave encashment during the pendency of proceedings, it cannot extend such restrictions to other pensionary benefits through executive instructions alone.

The judgment is likely to provide relief to hundreds of retired Punjab government and corporation employees who were denied these benefits solely due to pending inquiries or court cases, reinforcing that retiral benefits cannot be curtailed arbitrarily without statutory backing.

Manraj Grewal Sharma

Manraj Grewal Sharma is a senior journalist and the Resident Editor of The Indian Express in Chandigarh, where she leads the newspaper’s coverage of north India’s most politically and institutionally significant regions. From Punjab and Haryana to Himachal Pradesh and the Union Territory of Chandigarh, she oversees reporting at the intersection of governance, law, politics and society. She also reports on the diaspora, especially in Canada and the US. With a career spanning journalism across several countries, academia and international development, Manraj brings a rare depth of perspective to regional reporting. She is widely regarded as a leading chronicler of Punjab’s contemporary history and socio-political evolution, particularly its long shadow of militancy, federal tensions and identity politics. Her book, Dreams after Darkness, remains a definitive account of the militancy years and their enduring aftermath. Professional Background & Expertise A gold medalist in mass communication and a post-graduate in English literature, Manraj has a multifaceted career spanning journalism, academia, and international development. She was also awarded a fellowship by National Foundation of India and did several in-depth pieces on Manipur. Internationally, she has reported from Israel, US, UK, Myanmar, and Mauritius Her key focus areas include: Regional Politics, History, Agriculture, Diaspora, and Security. Of late, she has started focusing on Legal & Judicial Affairs: Much of her recent work involves reporting on high-stakes cases in the Punjab and Haryana High Court, ranging from environmental policy to civil rights. International Consulting: She previously served as a consulting editor for the Asia Pacific Adaptation Network and a publishing consultant for the Asian Development Bank (ADB) in Manila. Academia: For five years, she was the managing editor of Gender, Technology and Development, a peer-reviewed international journal at the Asian Institute of Technology, Bangkok. Recent Notable Articles (Late 2025) Her recent reportage focuses heavily on judicial interventions and regional governance: 1. Environment & Governance "‘NGT can’t test legality of policy’: HC hears challenge to Punjab’s ‘Green Habitat’ plan" (Dec 22, 2025): Covering a critical legal battle over whether the National Green Tribunal has the authority to strike down a state policy regularizing farmhouses on delisted forest land. "High court pulls up Punjab poll panel over audio clip probe" (Dec 10, 2025): Reporting on judicial concerns regarding the transparency and fairness of local body elections. 2. Legal Rights & Social Welfare "HC issues notice to Punjab, Haryana over delay in building old age homes" (Dec 22, 2025): Reporting on a contempt petition against top officials for failing to establish government-run homes for the elderly as promised in 2019. "Victims can appeal acquittals in sessions court without seeking special leave" (Dec 19, 2025): Highlighting a significant procedural shift in criminal law following a Supreme Court ruling. "HC upholds benefits for Punjab FCI officer acquitted in 20-year-old bribery case" (Dec 19, 2025): A report on the concept of "honourable acquittal" and its impact on employee benefits. 3. Human Rights & Identity "As Punjab denies parole to MP Amritpal Singh, HC asks it to submit ‘foundational material’" (Dec 1, 2025): Covering the legal proceedings regarding the radical preacher and sitting MP's request to attend Parliament. "Protecting life paramount: HC backs Muslim woman in live-in after verbal divorce" (Nov 6, 2025): Analyzing judicial protections for personal liberty in the context of traditional practices. Signature Beats Manraj is recognized for her ability to decode complex judicial rulings and relate them to the everyday lives of citizens. Whether it is a 30-year-old land battle in Fazilka or the political implications of Kangana Ranaut’s candidacy in Mandi, her writing provides deep historical and regional context. Contact @grewal_sharma on X manrajgrewalsharma on Instagram ... Read More

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