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2010 Supreme(Mad) 3743

High Court of Judicature at Madras
THE HONOURABLE MR. JUSTICE M.M. SUNDRESH
T.R. Krishnamoorthy
Versus
The Managing Director Tamil Nadu Housing Board, Nandanam, Chennai & Others
W.P.NO.12194 OF 2003 & W.P.M.P.NO.15298 OF 2003
Decided On : 27-08-2010

Advocates Appeared:
For the Petitioner:M/s. R. Vaigai, Advocate.
For the Respondents:R1 & R2 - A. Vijayakumar TNHB, Advocate, R3 - M/s. C. Devi, Government Advocate.

A retired employee cannot be held liable for alleged occurrences that happened during the employee's service, especially when no departmental proceedings were initiated during the service and the employer-employee relationship had ended after retirement.

Headnote:

Show Cause Notice - Recovery of Loss - Retired Employee - The court held that the petitioner, a retired employee, cannot be held liable for the alleged loss caused by delay in finalizing the cost of construction, especially when no departmental proceedings were initiated during the petitioner's service and the employer-employee relationship had ended after retirement.

Fact of the Case:

The petitioner, a retired Allottee Service Manager, was issued a show cause notice for the recovery of a sum of money allegedly lost due to delay in finalizing the cost of construction of flats. The petitioner challenged the orders issued by the respondents in a writ petition.

Finding of the Court:

The court found that the petitioner cannot be held liable for the alleged loss, especially considering that no departmental proceedings were initiated during the petitioner's service and the employer-employee relationship had ended after retirement. The court set aside the impugned orders and allowed the writ petition.

Issues: The issues revolved around the liability of a retired employee for alleged loss caused during the employee's service, the initiation of proceedings after retirement, and the sufficiency of the show cause notice issued to the petitioner.

Ratio Decidendi: The court held that a retired employee cannot be held liable for alleged occurrences that happened during the employee's service, especially when no departmental proceedings were initiated during the service and the employer-employee relationship had ended after retirement. The court also emphasized the insufficiency of the show cause notice and the lack of findings about the actual persons responsible for the alleged loss.

Final Decision: The court set aside the impugned orders and allowed the writ petition, ruling in favor of the petitioner. No costs were awarded, and the connected miscellaneous petition was closed.

Judgment :-

1. The petitioner was working as an Allottee Service Manager with the 1st respondent. After working in the said capacity, the petitioner retired from service on 30.04.1983. After the retirement of the petitioner, the first respondent issued a show cause notice dated 11.02.2002 stating that on account of the delay caused by the petitioner and in view of the deliberate failure on his part along with some other officials in intimating the final cost of 174 flats constructed in the Madurai Mill Colony, the respondent board has incurred a loss of Rs.3,39,250/-. Therefore, the said amount was sought to be taken against the petitioner for recovering a sum of Rs.31,584/-being the proportionate amount of loss caused by the petitioner.

2. The petitioner gave a reply stating that other persons who are working along with the petitioner from the month of October 1977 to March 1984 are only responsible for the alleged loss. It was further stated in the reply that the Allotment Section is not empowered to finalise the cost of construction and the completion of Report Section should have intimated the final cost to the Allotment Section. The petitioner also stated that he was not in-charge of the allotment from the month of October 1984 to March 1986.

3. According to the petitioner that only after 1984 the final price was intimated to the allottees who filed writ petitions and obtained interim orders. However without giving any reply to the petitioner, an order was passed by the 1st respondent directing the petitioner to pay a sum of Rs.31,584/-. The petitioner filed a further appeal to the 3rd respondent who in turn has confirmed the order passed by the 1st respondent. Challenging the above said orders, the present writ petition has been filed.

4. The learned counsel appearing for the petitioner submitted that the alleged occurrence was for the period starting from 1976 to 1979. It is further submitted that the finalisation is not the duty of the petitioner but it is only the Completion of the Report Section which is responsible for the same. It is also submitted that in any case for the alleged occurrence which was from 1976 to 1979, the action cannot be taken nearly 10 years after the retirement of the petitioner.

5. According to the petitioner that the involvement of the other persons have not been taken into consideration and on a mechanic application of mind, the petitioner was asked to make out proportional loss. The learned counsel for the petitioner further submitted that in pursuant to the impugned orders recovery was sought to be made in the pension granted to the petitioner. Therefore, the learned counsel submitted that the writ petition will have to be allowed.

6. Per contra, the learned counsel appearing for the respondents 1 and 2 submitted that the petitioner was in-charge at the relevant point of time and therefore the impugned orders passed have to be sustained. It is further submitted that the fixation of the loss to the Housing Board and the petitioner should have coordinated with the Completion of Record Section, the finalisation of the cost made after 1984 was quashed by the Honourable Court on the question of delay. Therefore, the writ petition is liable to be dismissed.

7. Admittedly, the petitioner was working with the respondents 1 and 2 in his capacity as Allottee Service Manager, the finalisation has to be done by the Completion of Report Section. It was stated by the respondents that the petitioner should have coordinated with the Completion of Report Section. When the duty is cast upon the Completion of Report Section, the petitioner cannot made liable for the same. In any case, the amount of proportionate liability cannot be fastened on the petitioner as in the case of other persons who are primarily responsible for finalising the cost, the respondents have not given any finding about the dereliction of duty by the responsible officers whose duty is to finalise the cost. Merely because of the petit




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