Recovery of leave encashment from retirees is impermissible without due process, including affording notice and an opportunity to defend against claims of wrongful payment.

JUDGMENT :

Ranjan Sharma, J.

Petitioner-Mahesh Dutt Sharma, a retiree, has come up before this Court, seeking the following reliefs:-

“i). That the respondents may kindly be directed to release the remaining amount of Rs. 3, 34, 709/- as leave encashment to the applicant alongwith upto date interest.

ii) That the respondents may also be directed to place the applicant in higher pay scale after completion of 16 years of service as executive officer under Assured Career Progression Scheme from due date i.e. 01.01.2014.

iii) That the respondent may also be directed to re-fix the pension of the applicant on the last basic pay plus allowances drawn by him.

iv) That the arrear re-fixation may kindly be released with interest from the date due.”

2. At the very outset, learned counsel for the petitioner states on Instructions that he does not presses the relief Nos. (iii) and (iv) for refixation of pay and the refixation of pension in the instant proceedings with liberty to pursue the same separately hereinafter.

[Statement Taken on Record].

FACTUAL MATRIX:-

3. Case set by Mr. Aditya Kaushal, Learned Counsel is that the petitioner joined service as Clerk in Notified Area Committee, Jawalamukhi [Kangra] in the year 1977. He was promoted as an Assistant Secretary in the year 1982 and then as Secretary in 1984. In pursuance to orders dated 24.11.1997, (Annexure A-1), the petitioner was promoted as an Executive Officer in pay scale of Rs. 7000-10980 on 28.11.1997 and after the completion of 8 years of service, the petitioner was given the higher pay scale of Rs 7220-10980 w.e.f. 28.11.2005 [Annexure A-3]. It is averred that though the Respondent No.3-Municipal Council Jawalamukhi had passed a Resolution on 23.12.2013 [Annexure A-7] approving to give the next /higher grade pay of Rs 7440 under ACP Scheme on completion of 16 years of service as an Executive Officer on 28.11.2013 but this benefit which was due from 1.1.2014 was not given. The petitioner retired from service as Executive Officer in Municipal Council Jawalamukhi on 30.04.2016.

3(i). In the above backdrop, the first grievance of the petitioner is that upon superannuation on 30.04.2016, though a total amount of Rs. 6,95,330/- was due and payable to him as leave encashment but an amount of Rs. 3,34,709/- was withheld and the same has not been not released as yet. The second grievance of petitioner is that in pursuance to orders dated 24.11.1997, Annexure A-1, the petitioner joined as Executive Officer on 28.11.1993 and he completed 16 years of service as Executive Officer on 27.11.2013 and upon completion of this service, the petitioner became eligible and entitled to be placed in higher grade pay under the Assured Career Progression Scheme w.e.f. 01.01.2014 but the benefit of ACP on completion of 16 years has also not been released to the petitioner as yet. Thus, the prayer is made for releasing the unpaid amount of Leave Encashment of Rs.3,34,709/- and for release of Assured Career Progression Scheme on completion of 16 years of service as Executive Officer w.e.f. 01.01.2014 under the applicable ACP Schemes with all benefits.

PROCEEDINGS BEFORE STATE ADMINISTRATIVE TRIBUNAL

4. Petitioner filed OA(D) No. 71 of 2018 before the State Administrative Tribunal when, notices were issued to the respondents.

STAND OF RESPONDENT NO. 3 IN REPLY-AFFIDAVIT:

5. Pursuant to the issuance of notice, the Respondent No.3-Municipal Council Jawalamukhi filed a Reply-Affidavit dated 25.07.2018, through Executive Officer Municipal Council Jawalamukhi.

5(i). In Para 3 of Reply-Affidavit, the Respondent No.3, has not disputed the factual matrix of the case. It is borne out from the Reply-Affidavit that the petitioner retired from service as Executive Officer