A bench headed by Justice J S Khehar said if misconduct or negligence entails pecuniary loss to the Government, then the loss caused can also be ordered to be recovered from the concerned employee.
It set aside the order of Calcutta High Court holding that proceedings can continue after superannuation only in cases in which pecuniary loss is caused to government exchequer.
"It is therefore apparent, that it is not only for pecuniary loss caused to the Government that proceedings can continue after the date of superannuation. An employee can be proceeded against, after the date of his retirement, on account of grave misconduct or negligence," it said.
The court passed the order on an appeal filed by West Bengal government challenging a High Court verdict.