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2022 Supreme(Guj) 377

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
BIREN VAISHNAV, J.
Ishwarbhai Manjibhai Patel - Petitioner
Versus
Director, Agriculture and Rural Finance - Respondent
R/Special Civil Application No. 7457 of 2020
Decided On : 07-04-2022

Advocates Appeared:
For the Petitioner: Mr. Jay B. Trivedi.
For the Respondent: Mr. Chirag B. Patel, Mr. Kurven Desai, AGP.

An employer cannot continue departmental proceedings after an employee's retirement, and the employee is entitled to all terminal benefits upon retirement.

Headnote:

APMC - Employee Retirement - Rules 19, 23, 24, 31(a) of Employees Services Rules - The court held that the APMC's decision to continue departmental proceedings after the employee's retirement was without authority of law. The employee was entitled to all terminal benefits upon retirement, including Provident Fund, Gratuity, and Leave Encashment.

Fact of the Case:

The petitioner, an employee of APMC, challenged the non-payment of retirement benefits. The APMC had withheld the benefits citing irregularities and initiated departmental proceedings after the petitioner's retirement.

Finding of the Court:

The court found that the APMC's decision to continue departmental proceedings after the petitioner's retirement was without authority of law. The petitioner was entitled to all terminal benefits upon retirement.

Issues: Non-payment of retirement benefits, validity of departmental proceedings after retirement.

Ratio Decidendi: The employer cannot continue departmental proceedings after an employee's retirement, and the employee is entitled to all terminal benefits upon retirement.

Final Decision: The petition was allowed, and the APMC was directed to compute and pay all terminal benefits to the petitioner within ten weeks.

JUDGMENT :

1. Rule returnable forthwith. Mr. Kurven Desai, learned Assistant Government Pleader waives service of notice of Rule for the respondent Nos.1 and 2 as well as Mr. C.B. Patel, learned counsel waives service of notice of Rule for respondent No.3 – Agriculture Produce Market Committee, Botad.

2. With the consent of the learned advocates for the respective parties, the petition is taken up for final hearing today.

3. Heard Mr. Jay B. Trivedi, learned counsel for the petitioner, Mr. C.B. Patel, learned advocate for respondent No.3 and Mr. Kurven Desai, learned Assistant Government Pleader for respondent Nos.1 and 2. Perused the record.

4. By way of this petition, under Article 226 of the Constitution of India, the petitioner had initially challenged the action of APMC – respondent No.3 in not paying the outstanding retirement benefits to the petitioner such as Provident Fund, Gratuity, Leave Encashment, Salary and Dearness Allowance. According to the petitioner, these amounts were not being paid though the petitioner had been relieved from his services with effect from 15.2.2020.

5. This Court, on 16.6.2020, after hearing the learned counsel for the petitioner, issued notice, making it returnable on 30.6.2020. Thereafter, the hearing of the petition, from time to time was adjourned.

6. When the petition was taken up for hearing on 12.10.2020, the learned counsel for the respondent placed before this Court a notice dated 3.10.2020 issued against the petitioner, by which, certain explanations were sought for, from him. The stand of the learned counsel for the respondent then was that the amount of gratuity, provident fund, leave encashment and salaries for certain periods were withheld, as an Inquiry Officer was appointed. This prompted the petitioner to amend the petition and bring on record the Show Cause Notice of 3.10.2020 and the documents together with the notice.

7. The facts in brief would indicate that the petitioner was appointed as an Inspector with the respondent – APMC, Botad on 1.9.1999. Thereafter, on 9.8.2008, he was transferred as Inspector to the Babarkot Sub-yard, Babarkot. On 16.8.2017, one Shri K.R. Ladola, Secretary went on leave, as a result of which, the Charge of the post of Secretary was handed over to the petitioner. As In-charge Secretary, on 6.10.2018, he addressed a letter to the Inspector of the APMC, Botad. The communication addressed to the Inspector indicated that certain vegetable vendors were carrying out certain irregularities in paying user charges for which complaints were received. The Inspector, therefore, in accordance with the powers vested with him should confiscate their Account Books and submit a report. The petitioner continued to remind the Inspector for submitting a report in compliance of the communication dated 6.10.2018.

8. On 13.11.2019, the petitioner submitted an application seeking to resign from his services of the APMC. The resignation was disapproved on 25.11.2019.

9. It appears that in the interregnum on 22.11.2019, two of the Directors addressed a letter to the petitioner questioning the action of the petitioner in addressing a communication to the Inspector on his powers to confiscate records in context of user charges not being paid by certain vegetable vendors. An explanation was sought asking the petitioner to furnish the report. Reminders were sent by the petitioner to the Inspector to submit a report and also the opinion of the District Registrar was sought as to whether such a report could be given to the Directors, to which, the Deputy Registrar opined that it cannot be so done in view of the pendency of a Court case.

10. On 6.1.2020, on account of certain personal reasons, the petitioner once again addressed a letter to the Chairman of the Committee requesting that he be relieved from his services and his resignation be accepted. The Chairman, by communication dated 8.1.2020 accepted the request of the petitioner writing to him that the petitioner would be treate

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