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2025 Supreme(Ori) 468

IN THE HIGH COURT OF ORISSA, CUTTACK
SANJAY KUMAR MISHRA, J.
Mohan Behera - Petitioner
Versus
Managing Director, Odisha Lift Irrigation Corporation Limited, Bhubaneswar And Another - Opp. Parties
W.P.(C) No.17399 of 2018
Decided On : 12-11-2025

Advocates:
Advocate Appeared:
For the Petitioner:Mr. Somanath Mishra, Advocate
For the Opp. Parties :Mr. B.K. Sharma, Sr. Advocate

Natural justice mandates that no recovery from an employee's salary should occur without notice and a fair hearing, particularly when assessing responsibility for misappropriation or theft.

Headnote:(A) Odisha Service Code - Principles of Natural Justice - Fair play in action requires that no order which affects an employee's civil rights should be made without notice and an opportunity to be heard. (Paras 14-16)

(B) Writ Petition - Recovery of salary - Employee could not be held responsible for thefts that occurred at the workplace without a proper inquiry or establishing personal culpability. (Paras 15-16)

Facts of the case:
The petitioner, a Junior Engineer in the Odisha Lift Irrigation Corporation, challenged an order for recovery of funds from his salary due to thefts occurring during his tenure without a proper inquiry or having been given the opportunity to respond.

Findings of Court:
The court opined that the recovery order was unjustified in the absence of any formal finding or inquiry establishing the petitioner's responsibility for the thefts.

Issues: The primary issue was whether the petitioner could be held liable for thefts occurring at the workplace without any inquiry or a chance to present his defense.

Ratio Decidendi: The court noted the importance of principles of natural justice and concluded that the unilateral deduction from the petitioner's salary was illegal and unjustified.

Result: The impugned order dated 26.09.2018 was set aside, and the petitioner was entitled to refund of the deducted amount with interest.

Table of Content
1. petitioner's challenge to recovery order. (Para 1 , 2)
2. details of theft incidents and communications. (Para 3 , 4 , 5)
3. petitioner's denial of responsibility for thefts. (Para 6 , 7 , 8)
4. court's scrutiny of recovery decision and due process. (Para 10 , 11 , 12 , 13)
5. rejection of unilateral recovery actions. (Para 14 , 15 , 16)
6. setting aside of recovery order against petitioner. (Para 17)
7. direction to refund amount with interest. (Para 18 , 19)

JUDGMENT :

S.K. Mishra, J.

The Petitioner, who is working as Junior Engineer (Civil) in the Opposite Parties-Corporation i.e. Odisha Lift Irrigation Corporation Limited, shortly hereinafter, “OLIC Ltd.”, has preferred the present writ petition with a prayer to set aside office order dated 26.09.2018 (Annexure-6), so far as it relates to the Petitioner, and to pass further appropriate order, as deemed fit and proper, in the facts and circumstances of the case.

2. So far as Office Order dated 26.09.2018, it is a common order, vide which the Financial Advisor and Chief Accounts Officer, OLIC Ltd. (Opposite Party No.2) ordered to recover the alleged outstanding amount under Corporation H/A-18(03) from the existing employees of the Corporation, as per the list enclosed to the said order, including the present Petitioner, whose name finds place at Sl. No.24 of the said list.

3. The admitted facts on record, which compelled the Petitioner to knock the door of this Court, is that while the Petitioner was working as Junior Engineer, L.I. Division, Berhampur, repeated thefts occurred in the Central Store of the Corporation. Some materials were stolen from the said store on three occasions during the year 2004 & 2005, for which F.I.Rs. were lodged before the local Police Station by the Petitioner. The Executive Engineer, L.I. Division, Berhampur also informed the Managing Director of the Corporation (Opposite Party No.1) vide his letter dated 03.10.2007 regarding such theft of stock materials from the Central Store of the L.I. Division, Berhampur.

4. Pursuant to such communication of the Executive Engineer, L.I. Division, Berhampur dated 03.10.2007, the Superintending Engineer, Southern Circle, OLIC Ltd. Berhampur also wrote to the Director (Technical), OLIC Ltd., Bhubaneswar suggesting therein to drop the amount shown as outstanding against the Petitioner, who was the In-charge of the Central Store, Berhampur. The Petitioner also, on being asked by the Executive Engineer, L.I. Division, Berhampur, submitted a compliance report dated 21.10.2017, so far as a sum of Rs.1,24,774.20, which was booked against him towards shortage of stock materials in the Central Store due to thefts occurred during his incumbency, i.e., on 18.08.2004, 14.12.2004 and 27.11.2005. Such compliance report being forwarded to the Financial Advisor and Chief Accounts Officer (Opposite Party No.2), it was returned vide letter dated 04.12.2017 to the Executive Engineer, L.I. Division, Berhampur (Ganjam) advising to verify the same at his end and report to him immediately. Pursuant to such communication, the concerned Executive Engineer did the needful and reported to the Opposite Party No.2 vide letter dated 30.01.2018.

5. However, without considering the said communication made by the Executive Engineer, the Opposite Party No.2 issued the common Office Order dated 26.09.2018 (Annexure-6) for recovery of the outstanding amount from various employees/officers, including the Petitioner, without any prior communication, thereby giving him an opportunity to have his say in the said regard.

6. Though the writ petition was pending since 2018, after about six years, a Counter Affidavit was filed on behalf of the Opposite Parties in January, 2025, taking a stand therein that the concerned Executive Engineer, vide his communication dated 18.09.2018, proposed to recover the said amount from the Petitioner, as the said amount was shown as an outstanding amount against him. It has further been stated in the Counter Aff

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