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2025 Supreme(Gau) 892

IN THE HIGH COURT OF GAUHATI, NAGALAND, MIZORAM AND ARUNACHAL PRADESH 
Kardak Ete, J.
Nagendra Lal Choudhury, S/O. Lt. Dr. Jogendra Mohan Choudhury – Petitioner
Versus
United Commercial Bank, Rep. By The Chairman And Managing Director And Ors. – Respondents
WP(C)/6360/2016
Decided On : 03-06-2025

Advocates:
Advocate Appeared:
For the Petitioner: Mr. R Sarkar, Mr. A Dasgupta, Mr. B Das, Mr. S Chakraborty
For the Respondent: Miss. S Goswami, Mr. S. C. Goswami, Mr P. C. Goswami

An employee removed from service due to misconduct is entitled to superannuation benefits as per Bipartite Settlement, despite delays, which justifies additional interest on unpaid dues.

Headnote:(A) Bipartite Settlement - Clauses 6(b) and 22 - Writ petition for retirement benefits - The petitioner, previously dismissed but later removed from service, claimed retirement benefits. The court found the petitioner entitled to benefits under Clause 6(b) of the Bipartite Settlement, notwithstanding Clause 22's restrictions - 17-year delay in payment justified 6% interest. (Paras 8-12)

(B) Public Interest - The court emphasized the need for prompt processing of retirement benefits to avoid undue delay and financial deprivation of the employee. (Para 13)

Facts of the case:
The petitioner served the bank for over 29 years, faced disciplinary action for loan irregularities, and was removed rather than dismissed, allowing claim for retirement benefits.

Findings of Court:
The court determined that the petitioner is entitled to his pension and other terminal benefits as per Bipartite Settlement provisions and court precedence in similar cases.

Issues: The main questions were regarding the entitlement of retirement benefits after removal from service and the applicable interest due to delays in payment.

Ratio Decidendi: The court upheld that employees entitled to superannuation benefits remain eligible under the Bipartite Settlement, affirming that delays in processing retirement benefits are unacceptable and entitled to interest.

Result: Writ petition allowed; the respondents directed to compute and release benefits expeditiously.

Table of Content
1. petitioner's employment history and disciplinary actions. (Para 2 , 3 , 4 , 5)
2. arguments for entitlement to retiral benefits. (Para 6 , 7)
3. application of precedent from sailendra nath kakati. (Para 8 , 10 , 11)
4. court’s directive to compute retirement benefits. (Para 9 , 12)
5. final orders regarding pension computation and payment. (Para 13 , 14)

JUDGMENT :

Kardak Ete, J.

Heard Mr. A. Dasgupta, learned Senior Counsel assisted by Ms. B. Das, learned counsel for the petitioner. Also heard Mr. P.C. Goswami, learned counsel for all the respondents.

2. By instituting this writ petition, the petitioner has prayed for a direction to the respondent authorities to pay the retirement benefits like gratuity, pension, leave encashment, etc.

3. The case of the petitioner, in brief, is that he initially joined as a Clerk in the UCO Bank on 29.11.1971. Thereafter, he was promoted to Junior Management Grade-I in 1980 and then, to the Middle Management Grade-II in the year 1997. While the petitioner was serving as the Middle Management Grade-II Officer and posted as Manager of Rangia Branch of the said Bank, vide order dated 25.08.2007, a show cause notice was issued to the petitioner to explain as to why disciplinary action should not be initiated against him for certain irregularities. It is alleged that despite transfer from Rangia Branch to Rajgarh Road Branch and being relieved, continued to work as Manager and irregularly sanctioned some loans by violating the Bank’s guidelines, thereby, exposing the Bank to serious financial risks. The details of the irregularities in disbursing loans were annexed with the show cause notice. The petitioner filed his response to the said show cause notice. Thereafter, the petitioner was placed under suspension, contemplating departmental proceedings.

4. The memorandum containing Article of Charges and statement of allegations was issued and served to the petitioner and after due process, the departmental enquiry commenced and on 20.02.2008, the Enquiry Officer submitted his report. The copy of the enquiry report was furnished to the petitioner to which the petitioner filed his reply.

5. On the basis of the enquiry report, the disciplinary authority vide order dated 28.03.2008, imposed the penalty of dismissal from service which would be disqualification for future employment and other penalties against the respective charges, against the petitioner. The petitioner filed a statutory appeal on 09.05.2008. The petitioner has approached this Court by filing WP(C) No.4798/2008. This Court, vide order dated 07.08.2025, disposed of the said writ petition with a direction to the appellate authority to consider and dispose of the appeal and pass reasoned order. Accordingly, the appellate authority, vide order dated 28.09.2025, has disposed of the appeal, modifying the order from dismissal from service to removal from service which shall not be disqualification for future employment and other penalties against each of the charges including recovery of Rs.9,00,000/- (Rupees nine lakh) only, from the petitioner.

6. Mr. A. Dasgupta, learned Senior Counsel for the petitioner submits that although the petitioner has initially challenged the order of removal from service and recovery of Rs.9,00,000/- (Rupees nine lakh) only, from the petitioner and for the grant of retiral benefits including gratuity, pension, leave encashment, etc., now grievance is only for payment of retiral benefits in terms of the judgment and order of this Court dated 01.05.2025, in WP(C) No.5939/2014 ( Sailendra Nath Kakati vs. the UCO Bank and others ). He submits that the case of Sailendra Nath Kakati (Supra) squarely covers the case of the petitioner. Therefore, similar relief may be granted to the petitioner.

7. Mr. P.C. Goswami, learned counsel for the respondent Bank fairly submits that the judgment of Sailendra Nath Kakati (Supra), relied by the learned Senior Counsel for the petitioner would cover the case of the present

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