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1970 Supreme(SC) 56

J.C.SHAH, K.S.HEGDE, A.N.GROVER
General Manager, North East Frontier Railway – Appellant
Versus
Dinabandhu Chakraborty – Respondent


K.S. HEGDE, J.

(1) HIS is an appeal by special leave. The respondent herein was an employee of the N. E. F. Railway belonging to the Union of India. At the time of his retirement he held the post of Station Master. While serving as Station Master at Dinhat Station, it is said that in the remittances made by him on 8/02/1961, there was a shortage of Rs.3,000.00. The enquiry committee which went into the matter held that he was responsible for the loss in question. The respondent retired from service with effect from 16/09/1961. Thereafter he was entitled to receive provident fund standing to his credit. While paying the same, the appellant deducted a sum of Rs. 3,000.00. This action is said to have been taken on the authority of Rule 1341 of the said Railway Provident Fund Rules. The question is whether the deduction made is authorised by law. The High court held that the deduction in question is impermissible. It has accordingly issued a writ directing the appellant not to give effect to the order deducting the sum of Rs. 3,000.00. Aggrieved by that decision, the appellant has come up in appeal to this court.

RULE 1341 reads thus:

"DEDUCTION.-(1) Subject to the condit




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