IN THE HIGH COURT OF HIMACHAL PRADESH AT SHIMLA
Ranjan Sharma, J.
Bihari Lal - Appellant
Versus
State of Himachal Pradesh and another - Respondent
CWPOA No. 4320 of 2020
Decided On : 24-12-2025
JUDGMENT :
Ranjan Sharma, Judge
Petitioner, Bihari Lal, having served as Rigman [Class-III] and retired as Driller had filed an Original Application No. 2276 of 2018 before Learned State Administrative Tribunal; and upon abolition of the Tribunal, the matter came to be transferred to this Court, as CWPOA No. 4320 of 2020, seeking the following reliefs: -
(i) That the impugned action of the respondents by illegally taking FDR of Rs.1,50,000/- in lieu of release of retiral benefit of the applicant may be declared as null and void;
(ii) That the respondents may kindly be directed to release the FDR of Rs.1,50,000/- in lieu of release of retiral benefit of the applicant which has wrongly and illegally been taken by the respondent along with interest.
FACTUAL MATRIX:
2. Case as set up by Learned Counsel is that petitioner was appointed as Rigman [Class-III] and upon joining service on 08.05.1981 though permanent headquarter of the petitioner was fixed in Geology Wing of Industries Department at Shimla but the Respondents posted/deployed the petitioner at various places for carrying out geological operations and ancillary work from time to time. Petitioner was lastly deployed at Karla in Tehsil Sundernagar, District Mandi in March 2005 and he was promoted as Driller (Class-II) in the year 2015 and he served as such till his superannuation on 31.03.2016. During his tenure as Karla his work conduct and performance had been satisfactory throughout. On superannuation, the petitioner was entitled for the release of entire retiral benefits inaccordance with the applicable Services Rules but, surprisingly, the Respondent-Department had withheld and retained an amount of Rs.1,50,000/- [Rs. One Lakh Fifty Thousand] in the form of FDR on 08.08.2016 from Leave Encashment of the petitioner without complying with the principles of natural justice and without authority of law. It is in this backdrop, that the grievance of the petitioner is that the action of the State Authorities in withholding an amount of Rs 1, 50,000/- [Rs One Lac Fifty-Thousand only] from the retiral benefits {Leave Encashment} of the petitioner in violation of the principles of natural justice and by acting contrary to the statutory rules was highly unfair, unjust, illegal, arbitrary and unconstitutional.
STAND OF STATE AUTHORITIES IN REPLY:
3. Pursuant to the issuance of notice on 03.05.2018, the Respondents have filed the Reply- Affidavit dated 31.05.2018 of Director of Industries, Himachal Pradesh, Shimla.
3(i). Perusal of the Reply-Affidavit indicates that petitioner was appointed as Rigman [Class-III, Non Gazetted] in the year 1981 in Respondent-Department and permanent headquarter of the petitioner was fixed at Geological Wing at Shimla on 08.05.1981 but the petitioner was deployed at various places. Reply Affidavit indicates that while the petitioner was posted at Karla in Tehsil Sundernagar, he retired from service on attaining the age of superannuation on 31.03.2016. Reply indicates that an audit/test check of the accounts of office of the State Geologist, Geology Wing, Department of Industries, Shimla was conducted for the period upto 11/2015 by the Audit Party of Accountant General, Himachal Pradesh, Shimla and the said audit party detected over payment of allowances beyond 180 days amounting to Rs.23.45 lakh to various incumbents, including the petitioner by treating incumbents on tour and based on audit report, the Respondent-Department withheld an amount of Rs1,50,000/- from the Leave Encashment by retaining the said amount in form of FDR on 08.08.2016.
3(ii). Reply-Affidavit further states that as per Supplementary Rules 73 and the Decision No 1 [Annexure R-1], an employee who is posted away from permanent headquarter to another place is entitled for “Daily allowance” for period upto 180 days and beyond 180 days no such daily dearness allowance was admissible. However, after expiry of 180 days such a deployed employee, who was posted away from permanent headquarter “A”
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