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2013 Supreme(Del) 2364

DELHI HIGH COURT
Valmiki J.Mehta, J.
Ashok Kumar Verma - Appellant
Versus
New India Assurance Co.Ltd. - Resopndent
W.P.(C) No. 6444/2011 & CM 13885/2013
Decided On : 10-10-2013

For the Appellant :Mr. R.K. Sahni , Mr. Arun Mittal, Advocates.
For the Respondent:Mr. Saurabh Prakash, Advocate.

Withholding terminal benefits without a specific rule would be violative of Article 300A of the Constitution of India.

Headnote:

Ex-gratia and Terminal Dues - Special Voluntary Retirement Scheme, 2004 - [SVRS Scheme] - [No specific act and section referenced] - The court held that the terminal benefits payable to an employee are not a bounty but are natural consequential rights on account of services being rendered by the employee. Withholding terminal benefits without a specific rule would be violative of Article 300A of the Constitution of India. The court directed the respondent to pay the amount of Rs.4,95,297/- to the petitioner along with interest at 7 ½ % per annum from the date of voluntary retirement.

Fact of the Case:

The petitioner sought direction against the respondent for the release of ex-gratia and terminal dues amounting to Rs.4,95,297/- along with interest, under the SVRS Scheme. The respondent contended that the dues were recovered on account of certain claims and that the petition was barred by delay and laches.

Finding of the Court:

The court found that the respondent had wrongly withheld the amount claimed by the petitioner and held that it is quite clearly payable to the petitioner. The writ petition was allowed, directing the respondent to pay the amount along with interest.

Issues: Dispute over the release of ex-gratia and terminal dues, contention of delay and laches raised by the respondent.

Ratio Decidendi: The terminal benefits payable to an employee are not a bounty but are natural consequential rights on account of services being rendered by the employee. Withholding terminal benefits without a specific rule would be violative of Article 300A of the Constitution of India.

Final Decision: The court directed the respondent to pay the amount of Rs.4,95,297/- to the petitioner along with interest at 7 ½ % per annum from the date of voluntary retirement.

JUDGMENT :

Valmiki J. Mehta, J.

1. By this writ petition, petitioner seeks direction against his erstwhile employer/respondent/New India Assurance Company Limited for release of the ex-gratia and terminal dues amounting to Rs.4,95,297/- alongwith interest. Petitioner took voluntary retirement under the Special Voluntary Retirement Scheme, 2004 (in short ‘SVRS Scheme’), and dues claimed by the petitioner are part of the dues payable on the application for voluntary retirement being accepted by the respondent.

2. The fact that this amount was due and payable to the petitioner under the SVRS Scheme is not disputed by the respondent in the sense that such dues were calculated/payable as ex-gratia and terminal dues, however, what the respondent contends is that these dues were recovered on account of certain claims of the respondent, and further that since then categorical position of refusal to make payment was known to the petitioner by communication dated 9.10.2007, the present petition is barred by delay and laches.

3. Let me at the outset reproduce the letter dated 9.10.2007 and which contains the necessary item-(j) with respect to which the disputes exist between the parties i.e the disputed amount of Rs.4,95,297/-.

“CORP:HRM: CL I CELL: 2007 9th October 2007 Mr. A.K.Verma A-127, Jhilmil Colony, Near Vivek Vihar Phase II Delhi 1100 95. Dear Sir, Re: Compliance of order of CIC dated 05.09.2007. In compliance to the order of CIC referred above, in F No. CIC/AT/A/2007/00701, the replies to the queries are as under:-

Item No.(f) No common uniform Perform had been formulated and circulated to Regional Offices to intimate the recovery due under non-personal audit query. The Regional Offices were to reflect this amount under this head when advising Head Office with regard to the total recoveries to be effected against any SVRP Optee. Item No.(j) A recovery of Rs.37,23,192/- was communicated to Head Office by Delhi R.O. II vide their letter ref. DRO II/HRM/CL I CELL/2004 dated 7th July, 2004 which was inclusive of recovery of Rs. 34,86,354/- under non-personal audit query. In the same stretch we would like to refer to letter dated 17.06.2004 of Mr. S.K. Mutneja, the then Assistant General Manager Delhi Regional Office-I whereby you were informed of the said Audit queries and which inter-alia also contain reference of your representation dated 11.05.2004 and your subsequent correspondence in the matter. On the basis of representation submitted by you, Delhi RO I constituted a Committee to examine the same and after perusal of all requisite documents/records the submitted their Report on 20.03.2007 recommending recovery of Rs. 4,95,297/- only. Please note that the settlement of dues was legitimately held up due to the representations submitted by your goodself and its examination by the Committee specifically formed to examine your grievance. Item No. (k) We are advising our Delhi RO I provide you the details of the settlement of terminal dues (with payment details) along with deductions effected under various heads. Item No. (m) The information sought by you is not readily available in material form and hence we are unable to provide the same. In terms of CIC’s order dated 05.09.2007 we are advising our Delhi RO I to communicate an appointment to you to enable you to visit our Delhi RO I at the appointed date and time to inspect the relevant records in case you are desirous for the same. We trust you shall find our reply in order. Yours truly (S P SINHA) Chief Manager.”

4. Learned counsel for the respondent has laid great emphasis on the doctrine of delay and laches and has placed reliance upon the judgments of the Supreme Court in the cases of Union of India (UOI) & Ors. Vs. Tarsem Singh (2008) 8 SCC 648 and State of Orissa & Anr. Vs. Mamta Mohanty (2011) 3 SCC 436. I need not refer to the paras of these judgments in detail inasmuch as surely it is an accepted legal proposition that a petition which is barred by delay and laches should ordi




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