Bindeshwari Chaudhary vs State Of Bihar & Ors

The Supreme Court held that the withholding of 50% of gratuity and pension of the appellant, an Executive Engineer, was unjustified as the appellant acted in good faith based on the bank's confirmation of the bank guarantee under Section 47 of the Bihar Pension Rules. The Court established that an employee cannot be penalized for actions taken in the course of duty unless there is clear evidence of misconduct. The Court ordered the release of the withheld amounts, emphasizing the need for fair treatment of government employees in service matters.