The recovery order and withholding of retiral dues without proper procedure and opportunity for the petitioner to be heard were illegal and arbitrary, and the petitioner was entitled to interest on the withheld amount.

ORDER :

1. This petition under Article 226 of the Constitution of India has been filed by the petitioner seeking for the following reliefs:

“(i) The Hon'ble Court may kindly be pleased to issue appropriate writ/writs, direction/directions, order/orders and to quash/set-aside the order dated 04.09.2015 (Annexure P-8) passed by the Appellate Authority cum Chairman, C.G. State Warehousing Corporation, Raipur, in Appeal Case No. 01/2015 and also the order dated 16.03.2012 (Annexure P-4) passed by the Managing Director of the respondent Corporation.

(ii) The Hon'ble court further be pleased to grant all the consequential benefits to the petitioner including the amount recovered under the order of recovery dated 16.03.2012.

(iii) The Hon'ble Court further be pleased to direct the respondents to pay the interest at the rate of 8% per annum upon the amount of retiral dues of the petitioner i.e. Rs. 9,76,744/- from 30.04.2008 upto 13.02.2015 which comes about Rs. 5,46,976/-.

(iv) The Hon'ble Court further be pleased to direct the respondents to refund the amount of Rs. 4500/- recovered from his salary towards loss due to shortage of Sugar during the tenure at Tilda, along with accrued interest from the dated of its recovery till the refund.

(v) The Hon'ble Court further kindly be pleased to call for the entire records of the case of the petitioner for kind perusal.

(vi) Any other relief, which the Hon'ble Court deems fit looking to the facts and circumstances of the case, may also be granted to the petitioner.”

2. Brief facts of the case as projected by the petitioner are that, the petitioner was initially appointed as Junior Technical Assistant in the M.P. State Warehousing Corporation functioning in the erst while State of Madhya Pradesh. After bifurcation of the State, the services of the petitioner was allocated to the State of Chhattisgarh. The petitioner was promoted on the post of Senior Assistant Manager and after about 34 years of continuous and unblemished service, he has superannuated on 30.04.2008 and retired from the post of Senior Assistant Manager. After his retirement, the retiral dues of the petitioner i.e. Provident Fund, Gratuity, Group Insurance etc. have not been paid to him by the respondent department.

3. Upon petitioner's representation, the respondent department replied that during the tenure of the petitioner, the respondent Corporation has suffered a loss of Rs. 46,29,030/- and payment of retiral dues is not possible till the write-off of the accounts in the joint meeting with the depositor Food Corporation of India and the respondent Corporation is held. Since, the retiral dues of the petitioner has not been paid to him, on 06.02.2012, he filed a Writ Petition (S) No. 643/2012 before this Hon'ble Court for direction to the respondents to pay his retiral dues along with interest. In the writ petition, after appearance of the respondents, return has been filed by them in which it has been averred that on 17/18.02.2012, the joint meeting of FCI and the respondent Corporation was held and it was found that during the tenure of the petitioner at Chittod, a loss of shortage occurred amounting to Rs. 1,44,341/- and the petitioner being branch manager of Chittod branch, is the ware-houseman and he is responsible for the loss, hence, the amount of Rs. 1,44,341/- was directed to be recovered vide order dated 16.03.2012 from the petitioner from his retiral dues.

4. Before passing the order dated 16.03.2012, there was no allegation of negligence, no any show-cause notice, no any departmental inquiry was conducted and even in the joint meeting with the FCI and the respondent department, the petitioner was not given any notice and opportunity to hear on the issue. Without hearing the petitioner and affording opportunity of hearing, the officers present in the joint meeting, held that the petitioner is at fault of loss to the tune of Rs. 1,44,341/- and liability has been fixed upon the petitioner and order of recovery has been pass