IN THE HIGH COURT OF JUDICATURE AT PATNA
P.B. BAJANTHRI, ARUN KUMAR JHA, JJ.
Madhya Bihar Gramin Bank - Appellant
Versus
Atmesh Kumar Roy Son of-Gupteshwari Charan Sinha – Respondent
Letters Patent Appeal No.33 of 2021 In Civil Writ Jurisdiction Case No.17150 of 2017
Decided on : 02-01-2023
Leave Encashment - Retirement Benefits - Regional Rural Banks Act, 1976 (21 of 1976), Regulation No. 39, Regulation No. 45, Regulation No. 67 - The court discussed the relevant regulations under the Dakshin Bihar Gramin Bank (Officers and Employees) Service Regulations, 2010, particularly focusing on Regulation No. 39, Regulation No. 45, and Regulation No. 67. The court emphasized that an employee retired compulsorily as a measure of penalty is entitled to all retiral benefits, including monetary benefits, as if he has retired on the date of imposition of penalty. The court highlighted that withholding of Leave Encashment is not identified as a measure of penalty under Regulation No. 39, and therefore, if an employee is retired compulsorily as a measure of penalty, he is entitled to Leave Encashment and all other service benefits.
Fact of the Case:
The appellant challenged the order of the learned Single Judge, which allowed the respondent's writ petition seeking a writ of mandamus directing the bank to pay the amount due to the respondent against Leave Encashment upon his retirement.
Finding of the Court:
The court found that the appellant failed to establish a case to interfere with the order of the learned Single Judge, as the respondent, retired compulsorily as a measure of penalty, was entitled to all retiral benefits, including Leave Encashment.
Issues: The issues revolved around the entitlement of the respondent to Leave Encashment upon compulsory retirement as a measure of penalty, as per the relevant regulations under the Dakshin Bihar Gramin Bank (Officers and Employees) Service Regulations, 2010.
Ratio Decidendi: The court held that an employee retired compulsorily as a measure of penalty is entitled to all retiral benefits, including monetary benefits, as if he has retired on the date of imposition of penalty. Withholding of Leave Encashment is not identified as a measure of penalty under the relevant regulation, and therefore, the employee is entitled to Leave Encashment and all other service benefits.
Final Decision: The present L.P.A was dismissed, affirming the order of the learned Single Judge dated 16.09.2020, which allowed the respondent's writ petition for the issuance of a writ of mandamus directing the bank to pay the amount due to the respondent against Leave Encashment upon his retirement.
JUDGMENT :
P.B. BAJANTHRI, J.
In the instant L.P.A, appellant has assailed the order of the learned Single Judge dated 16.09.2020 passed in C.W.J.C No. 17150 of 2017. The respondent-Atmesh Kumar Roy in C.W.J.C No. 17150 of 2017 has prayed for the following relief:-
2. The learned Single Judge allowed the C.W.J.C No. 17150 of 2017 in favour of respondent-Atmesh Kumar Roy hence, the present appeal by the Madhya Bihar Gramin Bank.
3. On 01.12.2022 the following order was passed.
Regulation 67 refers to retirement and there is no specific words like retirement compulsorily as a measure of penalty or in the normal course retirement after completion of age of superannuation. In this regard learned counsel for the appellant is hereby directed to get instruction.
Relist this matter on 15.12.2022.”
4. Today learned counsel for the appellant vehemently contended that having regard to the imposition of penalty of compulsory retirement under Regulation No. 39 of Dakshin Bihar Gramin Bank (Officers and Employees) Service Regulations, 2010 (for short Regulations, 2010). Respondent is not entitled to relief sought in the writ petition.
5. Learned counsel for the appellant submitted that Regulation No. 2(a) deals with “Act” means the Regional Rural Banks Act, 1976 (21 of 1976). Further, he has pointed out Regulation No. 39(b) under explanation 2(i) proviso to contain that competent authority is empower to imposition of penalty. Further, he has pointed out Regulation No. 45.
6. Regulation No. 45 Reads as under:-
An officer or employee who is under suspension on a charge of misconduct and who attains the age of superannuation, shall be deemed to be in service even after the age of superannuation for the specific purpose of continuation and conclusion of the disciplinary proceedings and issue of final orders thereon.
(2) The officer or employee who is under suspension shall not be eligible for any subsistence allowance for the period beyond the date of superannuation.
(3) The officer or employee against whom disciplinary proceeding has been initiated shall cease to be in service on the date of superannuation but the disciplinary shall continue as if he was in service until the proceedings are concluded and final order is passed in respect thereof.
(4) The officer or employee against whom disciplinary proceedings has been initiated shall not receive any pay and/or allowances after the date of superannuation and also not be entitled for the payment of retirement benefits till the proceeding is completed and final order is passed th
The judgment establishes that leave encashment entitlement under Regulation 67 must be read in conjunction with Regulation 61(4) and applies to cases of death, retirement, or termination owing to ret....
The main legal point established in the judgment is the entitlement of an employee to leave encashment benefits upon compulsory retirement, as per Regulation 38 and judicial interpretations, and the ....
Compulsory retirement does not bar an employee from receiving gratuity or leave encashment under certain conditions as established in prior case law.
The main legal point established in the judgment is that the appellant was not entitled to withhold the leave encashment amount as a retiral benefit under Rule 25.13, and the respondent was not entit....
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