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The National Accountability Bureau (NAB) cannot Withhold Pensionary Benefits of Retired Employees without Lawful Authority or Due Process --- Lahore High Court, Lahore

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The National Accountability Bureau (NAB) cannot Withhold Pensionary Benefits of Retired Employees without Lawful Authority or Due Process --- Lahore High Court, Lahore

Islamabad 04-04-2025: In a significant ruling safeguarding the rights of retired public servants, the Lahore High Court has declared that the National Accountability Bureau (NAB) cannot withhold the pensionary benefits of its retired employees without due process or lawful authority.

Mr. Justice Muzamil Akhtar Shabbir issued the judgment in [Writ Petition No. 6630 of 2022], filed by Petitioner retired NAB employee who had served in BPS-21. The petitioner challenged NAB’s action of withholding his pensionary benefits, gratuity, and other post-retirement entitlements despite no departmental or criminal proceedings pending against him.

The Court ruled that pensionary benefits are a vested right of a Civil Servant, protected under Section 18 of the Civil Servants Act, 1973. Any withholding of such benefits without legal justification amounts to a violation of fundamental rights under Articles 9 and 25 of the Constitution.

The Court rejected NAB’s defense that a complaint regarding the petitioner was pending scrutiny, observing that mere pendency of a complaint or initiation of a preliminary probe could not justify the denial of pensionary dues. It stressed that no rules or regulations allow such action unless the person is convicted or faces established liability through proper proceedings.

Mr. Justice Muzamil Akhtar Shabbir directed NAB to immediately release all pensionary and retirement benefits due to the petitioner and held that any delay in this regard was unwarranted and unlawful. The judgment reaffirmed that even under the NAB Employees Terms and Conditions of Services (TCS) Rules, 2002, and the Civil Servants (Pension) Rules, 1983, such benefits cannot be withheld arbitrarily.

Legal analysts view the ruling as a landmark in curbing administrative overreach and ensuring post-retirement security for government employees. The decision sets a precedent for similar cases where government institutions may have unjustifiably delayed or denied pension rights.