Section 26 in The Orissa Contributory Provident Fund Rules, 1938
26.
Subject to the condition that no deduction may be made which reduces the credit by more than the amount of any contribution by Government with interest credited under Rules 10 and 11, before the amount standing to the credit of the subscriber in the fund is paid out of the Fund -(a)The Governor may direct the deduction therefrom and payment to Government of -(i)All amount representing such contribution and interest if the subscriber is dismissed from service due to misconduct, insolvency or inefficiency :Provided that where the Governor is satisfied that such deduction would cause exceptional hardship to the subscriber, he may by order, exempt from such deduction an amount not exceeding two-third of the amount of such contribution and interest which would have been payable to the subscriber, if he had retired on medical ground :Provided further that if any such order of dismissal is subsequently cancelled the amount so deducted shall, on his re-instatement in the service be replaced to his credit in the fund;(ii)all amounts representing such contribution and interest, if the subscriber within five years of the commencement of his service as such, resign from the service or ceases to be an employee under Government otherwise than by reason of death, superannuation, or a declaration by a competent medical authority that he is unfit for further service, or the abolition of the post or the reduction of establishment;(b)the Governor may direct the deduction therefrom and payment to the Government of any amount due under a liability incurred by a subscriber to Government.Note 1. - For the purpose of Sub-clause (ii) of Clause (a) of this Rule.(a)the period of five years shall be reckoned from the commencement of the subscriber's continuous service under Government;(b)resignation from service in order to take up appointment in another department of the State Government or under the Central Government or under a body corporate owned or controlled by Government or an autonomous organisation, registered under the Societies Registration Act, 1860 (21 of 1860) without any break and with proper permission of the State Government shall not be treated as resignation from Government service.Note 2. - The powers of the Governor under this rule may, in respect of the amounts referred to therein also be exercised by the authority competent to sanction an advance tor the grant of which special reasons are required under Rule 13.
