DR. NAZRUL ISLAM vs UNION OF INDIA

The Supreme Court upheld the continuation of disciplinary proceedings against a retired employee under Rule 6(1) of the All India Services (Death-cum-Retirement Benefits) Rules, 1958, allowing for the withholding of pension or gratuity if grave misconduct is established. The Court clarified that the inquiry report's findings must be considered by the Central Government before any final decision on recovery is made. The Court directed the Central Government to conclude the proceedings within six months, failing which they would be deemed dropped.