Gratuity is exempt from attachment and cannot be withheld pending surcharge proceedings under the A.P. Cooperative Societies Act, 1964.

JUDGMENT

1. This petition is filed under Article 226 of the Constitution of India for the following relief:-

"...to issue a writ order or direction more particularly one in the nature of Writ of Mandamus directing the fourth respondent to pay the amount due and payable to the petitioner towards gratuity, leave encashment and arrears on account of pay revision scale for the period from 1/11/2017 to 30/6/2019 with interest at 12% per annum on the delayed payment, without causing any further delay and to pass such other order or orders......."

2. The case of the petitioner is that he was selected and appointed as Staff Assistant/ Supervisor in the District Cooperative Central Bank Limited, SPSR Nellore and joined duty on 16/7/2012 and after training he was posted to NDCCB Kota Branch at Kota and worked there from 1/8/2012 to 30/6/2019. The main grievance of the petitioner is that he was not paid terminal benefits. Therefore, he made representations on 6/10/2019 and 20/1/2021 to the 4th respondent seeking to release of his terminal benefits. Then, the 4th respondent informed him that the bank will settle terminal benefits on finalization of the surcharge enquiry. Basing on the vigilance report, the 4th respondent has terminated the petitioner from his service four days before his retirement on superannuation i.e., 26/6/2019, his retirement date is 30/6/2019 and also mentioned that treating the suspension period of four days as loss of pay besides recovery of loss caused to the bank. Basing on the inspection report, the 3rd respondent has initiated surcharge proceedings on 10/6/2020 under Sec. 600(1) of AP Cooperative Societies Act 1964 against the petitioner and other employees. Challenging the same the petitioner has preferred writ petitions vide WP Nos. 15532 of 20220 and 15541 of 2020 before this Court, which are pending consideration. It is further stated that since the specific exemption is given under the A.P. Cooperative Societies Rules 1964, the 4th respondent cannot withhold his terminal benefits on the ground that surcharge proceedings are pending, which is highly illegal and arbitrary. Hence, the present writ petition.

3. Counter affidavit is filed by the respondent denying all the allegations made in the petition and contended that the petitioner was retired from service of the Bank on 30/6/2022 and at the time of his retirement he was under suspension. While communicating the retirement intimation, the Bank has informed that the retirement benefits of the incumbent will be released on finalization of enquiries and charges pending if any. But after completion of enquiry, the enquiry officer concluded that the charges leveled against the charged employee is established and therefore the charge is held proved, the act of the employee comes under gross misconduct. Hence, by following the due procedure, the competent authority has issued the proceedings dtd. 2/3/2020 terminating the petitioner from service and the suspension period will be treated as loss of pay besides recovery of the effected loss caused to the Bank funds of Rs.2, 94, 37, 748.00 @ 18% of interest from tehd ate of disbursement of concerned loans. It is also stated that when an employee is terminated from the service he is not entitled to receive the terminal benefits and hence the Bank has not paid the terminal benefits to the petitioner.

4. Heard Smt M. Siva Jyothi, learned counsel for the petitioner and learned Government Pleader for Cooperation and Mr. Siva Prasad Reddy Venati, learned counsel appearing for the respondents.

5. During hearing, learned counsel for the petitioner while reiterating the averments made in the petition, submits that, the petitioner was retired from service only four days before his superannuation. Basing on the inquiry report, the 3rd respondent has initiated surcharge proceedings under Sec. 60(1) of the A.P. Cooperative Societies Act 1964, which is highly illegal and arbitrary. Therefore, he requests this Court to pass appropria