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2020 Supreme(Guj) 698

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
Sangeeta K. Vishen, J.
Kishorebhai Babudas Puranverari – Petitioner
Versus
State Of Gujarat & others – Respondents
R/Special Civil Application No. 8890 & 13431 of 2018
Decided On : 21-09-2020

Advocates:
Advocate Appeared:
For the Petitioner:Mr Samir Afzal Khan, Advocate
For the Respondent:Mr Chinmay M Gandhi, Advocate

IMPORTANT POINT
The necessity for prompt payment of the retirement dues to a Government servant immediately after his retirement cannot be over-emphasised and it would not be unreasonable to direct that the liability to pay penal interest on these dues at the current market rate should commence at the expiry of two months from the date of retirement.

Headnote:

Gujarat Public Premises (Eviction of Unauthorised Occupants) Act, 1972 - Service Tenure – Notification - allotment of the quarters - Retiral dues - Pension and gratuity are no longer any bounty to be distributed by the Government to its employees on retirement but are valuable rights in its hands, and any culpable delay in disbursement thereof must be visited with the penalty of payment of interest - It is hard earned benefit which accrues to an employee and is in the nature of 'property' as per provisions of Article 300A of Constitution of India and which cannot be taken away without the due process of law; thirdly, withholding of quarters allotted to government employee while in service, is not a valid ground to withhold the disbursement - Government cannot be allowed to recover summarily alleged dues according to its whims in a vindictive manner by adopting different and discriminatory standards.

Facts of the case: Petitioners were appointed in the year 1983 as pumpmen for operating the pump at Aji Industrial Area, GIDC and since then have been working as pumpmen - Petitioners were allotted quarters in the year 1987 and rent towards the said quarters was deducted from the salary of the petitioners - Petitioners are residing in the said quarters and have spent almost substantial part of their life residing in the said quarters - Subsequently, GIDC issued another notification dated 18.10.2002, inter alia, resolving that all class-IV employees who are residing in the quarters shall be allotted such quarters as per the hire purchase system on the basis of the notification -

Findings of the court: It is clear, there is nothing on record to suggest that GIDC undertook the said exercise of preparing the papers of retiral dues of the petitioners, however, on the contrary, on the date when the petitioners were relieved, GIDC had an audacity to pass the orders withholding the retiral dues without any authority of law - On top of this, GIDC passed two orders, both dated 25.9.2018, requiring the petitioners to vacate the quarters - Evidently, there is a delay and/or lethargy on the part of GIDC in not releasing the retiral dues to the petitioners in time, which would definitely attract the penal interest to be paid to the petitioners.

Result: Petitions allowed

JUDGMENT :

1. The issues involved in both the petitions are similar. They are heard together and are being disposed of by this common judgment. The facts, as is discernible from the record of both the writ petitions, are as under.

2. The controversy raised in the captioned petitions is of withholding of retiral dues of the petitioners viz. contributory provident fund, group savings link insurance, gratuity, etc. (hereinafter collectively referred to the 'retiral dues') on the ground that the petitioners after retirement are in illegal occupation of the residential quarters allotted to them during their service tenure. The petitioners in both the petitions have prayed for direction to quash and set aside the orders dated 30.4.2018 and 31.7.2018 respectively, passed by the respondent authorities whereby, as aforesaid, retiral dues have been withheld.

2.1 The petitioners were appointed in the year 1983 as pumpmen for operating the pump at Aji Industrial Area, GIDC, Rajkot and since then have been working as pumpmen. The petitioners were allotted quarters in the year 1987 and rent towards the said quarters was deducted from the salary of the petitioners. The petitioners are residing in the said quarters and have spent almost substantial part of their life residing in the said quarters.

2.2 It is the case of the petitioners that the Gujarat Industrial Development Corporation (hereinafter referred to as 'GIDC') had issued a notification dated 27.4.1998 for allocation of residential quarters, apropos which the petitioners have applied for the allocation on hire purchase system. Subsequently, GIDC issued another notification dated 18.10.2002, inter alia, resolving that all class-IV employees who are residing in the quarters shall be allotted such quarters as per the hire purchase system on the basis of the notification dated 27.4.1998.

2.3 Apropos the notification issued by GIDC, the petitioners submitted fresh applications for allotment of the quarters on hire purchase system. The said applications were for allotting the quarters where the petitioners were residing. It is also the case of the petitioners that the petitioners fulfilled all the terms and conditions prescribed under the new notification dated 18.10.2002. The petitioners as per the requirement, have also paid an amount of Rs.2,000/- by way of demand draft. Since nothing was heard for 4 years, the petitioners made several representations to the concerned respondents; apropos which the section officer of Industries & Mines Department had addressed a letter to the Secretary, GIDC to consider the request of the petitioners for allotment of the quarters.

2.4 Thereafter, on 3.8.2008, the applications of the petitioners were processed on the office file. The Deputy Executive Engineer, GIDC considered the request of the petitioners and approved their applications. Similarly, respondent No.3 had also approved the applications together with the sketch, prepared of the quarters. Such allocation of quarters was approved by various authorities of GIDC vide entry nos.34, 35 and 36. All the formalities were over at the district level and General Manager of GIDC addressed a letter to respondent No.2 Managing Director, inter alia, requesting for necessary approval for allocation of the quarters. In the interregnum, the petitioners were transferred from Rajkot to Sanand which led to filing of the writ petition before this Court.

2.5 It is further stated that the petitioners contemplating eviction, filed writ petition being Special Civil Application No.1753 of 2016 and this Court, vide order dated 27.6.2018 partly allowed the writ petition with a direction to respondent No.2 to allow the petitioners to occupy the quarters which the petitioners were occupying by virtue of their service with GIDC and strictly in accordance with the terms and conditions of the allotment. By the said order, the petitioners were directed to file separate undertakings to GIDC, inter alia, stating that the petitioners w

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