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2008 Supreme(SC) 40

2008(1) Supreme 95
Supreme Court of india
(From Punjab and Haryana High Court)
C.K. Thakker & D.K. Jain, JJ.
S.K. Dua — Petitioner
versus
State of Haryana & Anr. — Respondents
Appeal (civil) 184 of 2008
Arising Out of Special Leave Petition (c) No. 21311 of 2005
Decided on : 09-01-2008

important point
The proposition that retiral benefits are not in the nature of ‘bounty’ needs no authority in support thereof.

Headnote:(a)Service Law – Retiral benefits – Interest thereon – The allegation that the appellant was charge sheeted just before retirement by an officer with mala fide intention of satisfying his vendetta appears to be prima facie correct – Further if payment of his retrial dues were delayed because of such action, he will be entitled to interest for the delayed payment. (Para 11)

       (b)Service Law – Interest on delayed payment of retrial dues – A retired Government servant could claim interest relying on Statutory Rules or Administrative instructions occupying the field, if any – However even in absence of such provisions, an employee can claim interest under Part III of the Constitution relying on Articles 14, 19 and 21 of the Constitution – The proposition that retiral benefits are not in the nature of ‘bounty’ needs no authority in support thereof – High Court was not right in dismissing the petition in limine even without issuing notice to the respondents. (Para 11)

       (c)Constitution of India – Article 26 – High Court dismissing the writ by a cryptic order – The writ petition ought to have been admitted by issuing Rule nisi and ought to have been decided on merits. (Para 12)

       Facts of the case:

       1.The appellant was working as an Engineer-in-Chief in the Department of Irrigation, Haryana.

       2.During the course of his duties as Head of the Department, he submitted reports in or about April-May, 1998 to the Government highlighting certain irregularities and mal-practices said to have been committed by Mr. S.Y. Quraishi, the then Secretary, Irrigation & Power and requested the Government to make enquiry through Central Bureau of Investigation (CBI).

       3.Government removed Mr. Quraishi as Secretary, Irrigation allowing him to work only as Secretary, Department of Power.

       4.The appellant has alleged that, as a measure of vendetta, Mr. Quraishi organized to send the appellant on deputation on May 15, 1998 to a lower and unimportant specially created post of Engineer-in-Chief, Command Area Development Agency by upgrading it just few weeks before his retirement.

       5.In addition to the said action, the appellant was served with three charge-sheets/ show cause notices in June, 1998, few days before his retirement.

       6.The appellant, however, retired on June 30, 1998 on reaching the age of superannuation.

       7.The appellant was paid provisional pension, but other retiral benefits were not given to him. The replies submitted by the appellant were accepted by the authorities and the appellant was exonerated of all the charges. All retiral benefits were thereafter given to him between June 11 and July 18, 2002.

       8.Thus, retiral benefits were given to the appellant after four years of his superannuation.

       9.The appellant as a senior citizen of 65 years of age approached the High Court by filing a writ petition for payment of interest for delayed payment of his dues. The High Court summarily dismissed the writ petition without even issuing notice to the respondents.

       Findings of the Court:

       High Court ought to have decided the matter on merits.

       Result : Appellant held to be entitled to interest for delayed payment. However matter remitted back to High Court for fresh consideration on merits.

judgment

C.K Thakker, J. —

1.Leave granted.

2.This appeal is directed against an order passed by the High Court of Punjab & Haryana at Chandigarh on July 7, 2005 in Writ Petition (C) No. 10025 of 2005. By the impugned order, the High Court dismissed the petition in limine relegating the appellant writ petitioner to avail a remedy by approaching a Civil Court.

3.Facts in brief are that the appellant was working as an Engineer-in-Chief in the Department of Irrigation, Haryana. According to him, he joined the service in Irrigation Department of the erstwhile State of Punjab in August, 1961 and was allocated to the Department of Irrigation and Power in the State of Haryana. He was promoted as Engineer-in-Chief on May 31, 1996 and worked in that capacity till he attained the age of superannuation in June, 1998. The appellant had an unblemished record of service for 37 years. During the course of his duties as Head of the Department, he submitted reports in or about April-May, 1998 to the Government highlighting certain irregularities and mal-practices said to have been committed by Mr. S.Y. Quraishi, the then Secretary, Irrigation & Power and requested the Government to make enquiry through Central Bureau of Investigation (CBI). According to the appellant, in pursuance of the complaint made by him, the Government removed Mr. Quraishi as Secretary, Irrigation allowing him to work only as Secretary, Department of Power.

4.The appellant has alleged that, as a measure of vendetta, Mr. Quraishi organized to send the appellant on deputation on May 15, 1998 to a lower and unimportant specially created post of Engineer-in-Chief, Command Area Development Agency by upgrading it just few weeks before his retirement. In addition to the said action, the appellant was served with three charge-sheets/ show cause notices in June, 1998, few days before his retirement. The appellant, however, retired on June 30, 1998 on reaching the age of superannuation. The appellant was paid provisional pension, but other retiral benefits were not given to him which included Commuted Value of Pension, Leave Encashment, Gratuity, etc. totaling to about Rs. 12 lakhs. They were withheld till finalization of disciplinary proceedings. The appellant submitted replies to the charge-sheets/ show cause notices, inter alia, denying allegations and asserting that they were uncalled for and were issued with mala fide intention and oblique motive. He further submitted that he had acted in public interest in salvaging damage likely to be caused to public exchequer. The replies submitted by the appellant were accepted by the authorities and the appellant was exonerated of all the charges. All retiral benefits were thereafter given to him between June 11 and July 18, 2002. Thus, according to the appellant though he retired in June, 1998, retiral benefits to which he was otherwise entitled, were given to him after four years of his superannuation.

5.The appellant has stated that, in the aforesaid circumstances, he was entitled to interest on the amount which had been withheld by the respondents and paid to him after considerable delay. He, therefore, made several representations. He also issued legal notice on June 3, 2005 claiming interest at the rate of 18% per annum for delayed payment. He had invited the attention of the Government to Administrative Instructions issued by the Government under which an employee is entitled to claim interest. Even otherwise, the action of non-payment of interest was arbitrary, unreasonable and violative of Articles 14 and 21 of the Constitution. There was, however, no reply whatsoever from the Government. The appellant as a senior citizen of 65 years of age then approached the High Court of Punjab & Haryana by filing a writ petition under Article 226 of the Constitution. But the High Court summarily dismissed the writ petition without even issuing notice to the respondents. The appellant has challenged the said order in the present appeal.

6.On Oct












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