ORDER :

1. This writ petition is directed against the order dated 28.7.2019 (Annexure P-1) passed by the Permanent & Continuous Lok Adalat (Pensioners) (for short 'Lok Adalat'), Durg, whereby the learned Permanent Lok Adalat has directed the petitioner Department to pay 12% interest per annum on an outstanding amount of retiral dues of the respondent herein within a period of two months and intimate to it about compliance of the order.

2. Brief facts of the case are that the respondent was working as Naib Tahsildar. Departmental enquiry was instituted against him and order dated 23.9.1989 issued by the Commissioner, Raipur Division, Raipur, various charges have been levelled against him and vide order dated 15.2.2001 the respondent has been compulsory retired from service. Vide letter dated 1.6.2000, the Commissioner, Raipur Division, Raipur has initiated another departmental enquiry against the respondent for financial irregularities committed during his tenure, for which chargesheet was issued against him. Detailed departmental enquiry was conducted and the inqury officer submitted its inquiry report on 7.8.2006 before the disciplinary authority. The inquiry officer found charges No.1, 2 & 5 to be proved and charges No.3 & 4 to be partly proved. Thereafter, the disciplinary authority after considering the inquiry report passed an order dated 24.11.2018 imposing punishment of recovery, the amount to be calculated for which the respondent was held to be liable for financial irregularities. It was further held that the respondent would not be entitled for any backwages during the suspension period on the principles of 'No Work No Pay', but he would be entitled for continuity of service for the purpose of pension. Pursuant to such order, the Collector, Balod issued the order dated 4.1.2019 directing the respondent herein to deposit the recoverable amount to the tune of Rs.1,23,132/- to be deposited within 7 days. The respondent preferred an application before the Permanent Lok Adalat with an grievance that the petitioner Department has not released retiral dues in spite of several representations made by him. Further in the application it has been mentioned that in spite of the fact that departmental enquiry was dropped, the petitioner Department in an illegal manner has withheld the retiral dues.

3. Learned Permanent Lok Adalat after considering the application filed by the respondent as well as other fact available before it passed the impugned order directing the petitioner Department to pay interest @ 12% on withheld retiral dues from the date of retirement till the payment is made.

4. Ms Priyamvada Singh, learned counsel for the petitioners, would submit that in Permanent Lok Adalat the State has taken the specific stand that vide order dated 4.1.2019 the Collector, Balod issued a memo to the respondent as in departmental enquiry, loss to the tune of Rs.1,23,132/- has to be recovered from him. So on depositing of such amount, arrears can be released. She would further submit that as per service rules, only 10% amount of pension as well as 10% amount of gratuity of the respondent was withheld and after culminating the departmental enquiry and ascertaining the loss, the employee / respondent has duly communicated to deposit the said loss. She contended that learned Permanent Lok Adalat did not take up any conciliation proceedings between the parties and has directly decided the dispute by the impugned order, which is contrary to the procedure established under Section 22C of the Legal Services Authorities Act, 1987 (for short 'Act of 1987'). So, the impugned order is not sustainable and prays to quash the impugned order.

5. On the other hand, Mr.Ashok Swarnkar, learned counsel for the respondent, would submit that for recovery of amount to the tune of Rs.1,23,132/- to the loss of government exchequer, the respondent has already instituted civil suit. He would further submit that the Permanent Lok Adalat has rightly passed the orde