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2025 Supreme(Kar) 2056
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
ASHOK S.KINAGI, J.
Dr. B.Usha Wife Of Dr P C Jagdeesh - Appellant
Vs.
Government Of Karnataka - Respondent
Writ Petition No. 1126 of 2021 (S-RES)
Decided On : 10-12-2025
For the Appellant :Sri. Swamy N B N., And Smt. N.B. Lakshmi, Advocates
For the Respondent:Sri. B.J. Eshwarappa, AGA Sri. Rajesh, Advocate Sri. Shantharaju, Advocate
Demand for repayment without inquiry and opportunity violates principles of natural justice, necessitating fair process in administrative decisions.
Headnote:(A) Karnataka State Audit & Accounts Department - Government Order dated 30.05.2017 - Special allowances for doctors in administrative posts - Petitioner sought to quash demand for repayment of excess allowances - Court emphasized the necessity of enquiry before action is taken against an employee - Respondent failed to conduct any enquiry prior to issuing repayment notice. (Paras 1, 6, 14, 15)
(B) Right to be heard - Principles of natural justice - Insisting on refund without proper inquiry or opportunity to respond is arbitrary - Court emphasized the importance of fair process in administrative decisions, underscoring that remedies must allow an employee to contest allegations before repayment is demanded. (Paras 11, 15)
Facts of the case:
The petitioner, while serving as Assistant Registrar (Planning) under Rajiv Gandhi University of Health Sciences, claimed unpaid special allowances amounting to Rs. 21,01,985/- due to a demand notice arguing she was overpaid. The University issued the notice based on an auditor's objections, alleging entitlement to special allowance only for emergency services. (Paras 3-6)
Findings of Court:
The court found the demand for repayment arbitrary as there had been no enquiry conducted regarding the entitlement of the petitioner to the special allowance. The court directed the respondent to consider the petitioner's reply and provide a proper opportunity for a personal hearing. (Paras 15-18)
Issues: The core issues included the applicability of a Government Order concerning special allowances and whether due procedure was followed in demanding repayment from the petitioner. (Paras 6, 14)
Ratio Decidendi: The decision highlights the procedural impropriety of making demands for refunds without due inquiry and emphasizes the necessity for administrative bodies to respect principles of natural justice by providing opportunity for defense before decisions affecting financial interests are made. (Paras 11, 16)
Result: Writ petition is disposed of; the fourth respondent is directed to consider the petitioner's reply and provide a personal hearing within 8 weeks.
| Table of Content |
|---|
| 1. petitioner's employment and entitlements. (Para 2 , 3 , 4 , 5 , 6 , 7) |
| 2. respondent's objections to payment. (Para 8 , 9) |
| 3. petitioner's challenge to refund demand. (Para 11 , 12) |
| 4. lack of inquiry and notice response. (Para 14 , 15) |
| 5. legal precedent on show cause notices. (Para 16 , 17) |
| 6. court's directive for further proceedings. (Para 18) |
ORDER :
ASHOK S.KINAGI, J.
1. The petitioner filed this writ petition seeking for the following prayers:
a) issue a Writ of Certiorari or any appropriate Writ, direction or Order quashing Annexure E' the impugned demand No.RGU/EST/73/2014-15 dated 28.04.2020 issued by notice the fourth Respondent University, The Registrar (Administration), Rajiv Gandhi University of Health Sciences, Bengaluru;
b) Consequentially to issue a Writ of Mandamus or any appropriate Writ, direction or Order, directing the fourth Respondent University, The Registrar (Administration), Rajiv Gandhi University of Health Sciences, Bengaluru to pay her the total sum of Rs. 21,01,985/-(Rupees Twenty one Lakhs one thousand nine hundred and eighty five) i.e being the amount of Rs. 13,74,200/- (Rupees Thirteen Lakhs Seventy four thousand and two hundred) towards Special Allowance short paid; interest over the same amounting to Rs. 2,27,785/- (Rupees Two Lakhs Twenty Seven thousand seven hundred and eighty five) and also a further sum of Rs.5,00,000/- (Rupees Five Lakhs) towards damages as interest over short paid Special Allowance and loss of interest over the deducted and inordinately deposited pension amounts as well as interest over the deducted amounts and not yet deposited as on date from the date of deduction till the date of deposit towards pension scheme amounts as well as the employer's contribution for the period April 2019 to 7th January 2020;
c) Also Consequentially to issue a Writ of Mandamus or any other appropriate Writ, direction or Order, ordering the third Respondent -The Principal Director, Karnataka State Audit & Accounts Department, Bengaluru to initiate disciplinary proceedings against the sixth Respondent, Finance officer Mrs. Zohra Jabeen, who is deputed to th fourth Respondent Rajiv Gandhi University of Health Science Bengaluru; as well as the auditor who raised objection in violation Annexures A, B and C.
2. Brief facts leading rise to the filing of this petition are as follows:
3. The petitioner was deputed to the fourth respondent university i.e., the Rajiv Gandhi University of Health Sciences, Bengaluru, as an Assistant Registrar (Planning) on 29.01.2015 and she worked in the said post from 29.01.2015 to 07.01.2020.
4. The Principal Accountant General (A & E), Karnataka, Bangalore, i.e., fifth respondent authorised the Drawing and Disbursing officer of the fourth respondent university to draw and disburse the special allowances of the petitioner as she is entitled for the post of Graduate Diploma Qualification she possesses, a sum of Rs. 17,600/- per month from 29.01.2015 to 05.07.2015; Rs. 42,600/- per month from 06.07.2015 to 08.03.2018 and on completion of 6 years of service from 09.03.2018 to 07.01.2020 at Rs. 43,700/- per month.
5. Government order dated 30.05.2017 of the Health and Family Welfare Department, stipulates that doctors also working in administrative posts, are entitled to special allowance. The fourth respondent university paid Rs. 17,600/- per month as a special allowance during her entire service of 5 years in the fourth respondent university and thereby she was short paid special allowance of Rs. 13,74,200/-.
6. The fourth respondent university issued a notice dated 28.04.2020 vide Annexure-E stating that the auditor in the audit report had raised an objection to the payment of total special allowance of Rs. 6,70,503/- paid to the petitioner during the deputation towards special allowances when, she was not entitled for the same as per the Rules as she has not rendered service in the emergency department, but rendered the service to the University in the Administra
