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2007 Supreme(P&H) 2202

PUNJAB & HARYANA HIGH COURT
Permod Kohli, J.
Tilak Raj
Versus
Punjab State Co-operative Societies
Civil Writ Petition No. 13212 of 2005,
Decided On : DECEMBER 19, 2007

Employer's obligation to release retiral benefits under the Voluntary Retirement Scheme after unconditionally accepting the request for voluntary retirement, despite pending inquiries.

Headnote:

Voluntary Retirement Scheme - Employee Rights - The court quashed the order imposing conditions on the release of retiral benefits under the Voluntary Retirement Scheme, emphasizing that the employer was not obligated to accept the request for voluntary retirement due to pending proceedings, but having accepted it unconditionally, imposing conditions later was unwarranted and illegal.

Fact of the Case:

The petitioner, a Weaving Technician, applied for voluntary retirement which was accepted unconditionally. However, a later order imposed conditions on the release of retiral benefits due to pending inquiries against him.

Finding of the Court:

The court quashed the order imposing conditions on the release of retiral benefits, stating that the employer was not obligated to accept the request for voluntary retirement due to pending proceedings, but having accepted it unconditionally, imposing conditions later was unwarranted and illegal. The petitioner was entitled to interest on the amount due after the expiry of 60 days from the date of his retirement.

Issues: Imposition of conditions on the release of retiral benefits under the Voluntary Retirement Scheme due to pending inquiries against the petitioner.

Ratio Decidendi: The employer was not obligated to accept the request for voluntary retirement due to pending proceedings, but having accepted it unconditionally, imposing conditions later was unwarranted and illegal.

Final Decision: The court allowed the writ petition, quashed the order imposing conditions on the release of retiral benefits, and directed the respondents to pay all retiral benefits to the petitioner within a period of four months, along with interest at the rate of 4% per annum on the amount due after the expiry of 60 days from the date of his retirement.

Judgment

Permod Kohli, J.

1. The petitioner was serving as a Weaving Technician with respondent No. 1, Society. The Society came out with a Voluntary Retirement Scheme for its employees which was circulated on 24.02.2003. The petitioner applied for his Voluntary Retirement on 26.08.2004 and his request was accepted vide order 23.03.2005 and he was retired from service with effect from 31.03.2005. It is, however, mentioned in the order that the dues payable under the scheme shall be released to him within 60 days from the date of retirement as per Rule 7 of the said scheme. On the date of retirement i.e. 31.03.2005, the impugned order dated 31.03.2005 (Annexure P-4) was passed whereby earlier order dated 23.03.2005 retiring the petitioner from service, was modified and it was directed that the dues payable under the scheme shall be released to him subject to the decision of the pending inquiries against him.

2. Aggrieved of this order, the petitioner filed the present writ petition. It is stated that in his application for Voluntary Retirement under the Scheme, the petitioner specifically indicated against Clause 14 that disciplinary proceedings are pending against him. He has also disclosed that minor punishment has been awarded to him during the service. It has been argued on behalf of the petitioner that the petitioner never concealed any fact from the respondents. Learned counsel for the petitioner has also placed reliance upon the

"Note Appended" to the Scheme, which reads as under :-

"Note :

In case disciplinary action is pending against an employee, who has sought Voluntary Retirement, the disciplinary authority shall, after considering all facts, convey to the Competent Authority whether the request of the employee should be accepted or not. In case the disciplinary authority decides that the request of such an employee for Voluntary Retirement be not accepted, the same shall be communicated to the employee in writing and he shall have a right to make an appeal as provided under Section 9 (v)."

This note clearly indicate that the respondents were entitled to refuse the request of the petitioner, if so desired by the Disciplinary Authority in the event any disciplinary proceedings were pending against him. Admittedly, the respondents accepted the request of the petitioner for Voluntary Retirement without any reservation or condition as is evident from the order dated 23.03.2005 (Annexure P-3).

3. In the written statement filed, it is mentioned that while working as Incharge, Production Centre, Amritsar, the petitioner has committed various acts of omission and Commission, due to which disciplinary action was initiated against him. It is also stated that on the basis of the Special Audit Report, recovery proceedings have been initiated against the petitioner.. It is, however, stated that no disciplinary proceedings were pending at the time of his retirement. The only ground for modification of the order is that the respondents have initiated recovery proceedings against the petitioner under the provisions of The Punjab Cooperative Societies Act, 1961. It is further mentioned that complaints and the Special Audit Report were pending before the Enquiry Officers appointed by the Registrar, Cooperative Societies, Punjab,Chandigarh, against the petitioner under the provisions of the Act, when order dated 23.03.2005 (Annexure P-3) was passed.

4. I have heard the learned counsel for the parties at length.

5. Voluntary Retirement Scheme itself provided for acceptance or refusal of the request for Voluntary Retirement. The employer i.e. respondent No. 1 was not under any obligation to accept the request of the petitioner in view of the pendency of the proceedings against him before the Registrar, Cooperative Societies, Punjab,Chandigarh, but for whatever reason the request has been accepted without any condition or reservation. It is also admitted in the written statement that no disciplinary proceedings were/are pending against th


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