High Court of Judicature at Madras
VINOD K. SHARMA
S. Natarajan
Versus
The Registrar, Co-operative Societies (Housing), Tamil Nadu Housing Board Building & Others
Writ Petition No.23900 of 2011 & M.P.No.2 & 3 of 2011
Decided On :Decided on: 27-01-2012
Certiorari - Withholding Retirement Benefits - Sec.81 of the Tamil Nadu Co-operative Housing Society Act, 1983 - Sec.81, 1999 SCC 666, 2008 Writ L.R. 104
Fact of the Case:
The petitioner sought to quash an order for enquiry and withholding of retirement benefits. The petitioner retired after 39 years of service and was subject to an enquiry under Sec.81 of the Tamil Nadu Co-operative Housing Society Act, 1983, just a day prior to retirement.
Finding of the Court:
The court found the withholding of retirement benefits to be arbitrary and without jurisdiction, as the relationship of Master and Servant ends upon retirement. The court also cited relevant case law to support its decision.
Issues: Enquiry and withholding of retirement benefits after the petitioner's retirement.
Ratio Decidendi: The court held that departmental proceedings against the petitioner after retirement were without jurisdiction, citing relevant case law to support its decision.
Final Decision: The departmental proceedings against the petitioner and the order withdrawing the retirement benefits were quashed. The court also directed the settlement of the entire terminal benefits of the petitioner within a month.
1. The petitioner has approached this Court with the prayer for issuance of a writ in the nature of Certiorari, to quash the order dated 30.07.2011 and 02.08.2011 ordering enquiry against the petitioner as also the consequential order dated 30.07.2011 withholding the petitioners retirement benefits.
2. The petitioner was employed as the Secretary In-charge, Tirupur Co-operative Housing Society Ltd. and attained the age of superannuation on 31.07.2011 after rendering 39 years of service.
3. The case of the petitioner is that during his entire service carrier, he was not subject to any kind of disciplinary or criminal proceedings, rather he was given regular promotion, as he joined as a Peon on 19.06.1972 and attained the post of Secretary.
4. It is pleaded case of the petitioner that just a day prior to the retirement of the petitioner, on the complaint filed against functioning of the Society, an enquiry under Sec.81 of the Tamil Nadu Co-operative Housing Society Act, 1983, was ordered, on the allegation that loss of Rs.1.5 Crores was caused to the Tirupur Co-operative Housing Society by disbursing the arrears of salary to the employees on account of revision of pay and that there was misuse of funds in construction of additional class rooms for Tirupur Kumaran College for Women, being run by the Society.
5. The case of the petitioner is that there was no specific allegation or charge memo against the petitioner, as enquiry under Sec.81 was against the functioning of the Society in general without any employee being named therein.
6. The action of the respondents therefore in withholding the retirement benefits of the petitioner is totally arbitrary and cannot be sustainable in the eye of of law.
7. The writ petition is opposed by the learned counsel for the respondents on the ground that the enquiry against the petitioner was ordered, a day prior to the retirement and the respondents were justified in withholding the retirement benefits of the petitioner, pending enquiry initiated prior to the retirement.
8. It is also the stand of the respondents, that by way of impugned order, the retirement benefits of the petitioner have been withheld subject to the petitioner being exonerated in the enquiry. The petitioner therefore cannot have any grievance with the order passed, as it is not open to the petitioner to challenge the enquiry proceedings before this Court at this stage, as the petitioner has the remedy to take all the defenses in the enquiry proceedings.
9. On consideration, this Court finds that the stand taken by the respondents is totally misconceived. It is not open to the respondents to hold any departmental enquiry against the petitioner after the date of retirement as relationship of Master and Servant comes to an end. The departmental proceedings against the petitioner is prima facie without jurisdiction and cannot be a ground to withhold the retirement benefits.
10. This view find support from the judgment of this Court inthe case of K.Balasubramaniamvs. The Registrar of Co-operative Societies (Housing)and two others) (W.P.No.5074 of 2009 and M.P.No.1 of 2009 decided on 11.06.2009) holding therein as under:
"(7) On the other hand, the learned counsel appearing for the third respondent would submit that since the petitioner had been allowed to retire without prejudice to the charge memo issued to him, the third respondent can proceed with the disciplinary proceedings. However, I am unable to agree with the contention of the learned counsel appearing for the third respondent since when once the petitioner had been allowed to retire from service and he retired from service, the third respondent cannot proceed with the disciplinary proceedings. No doubt, the petitioner had been allowed to retire without prejudice to the charge memo issued to him. Even then, the third respondent cannot proceed with the disciplinary proceedings against the petitioner. This view has been taken by the Honble Apex Court a
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