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2023 Supreme(P&H) 3068

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
RAJ MOHAN SINGH, J.
Bhagat Ram Aggarwal – Petitioner
Versus
Haryana Warehousing Corporation & Ors. – Respondents
CWP NO.11049 of 2015(O&M)
Decided On : 23-02-2023

Advocates Appeared:
Mr. D.S. Rawat, Advocate; For the Petitioner
Mr. Lekh Raj Sharma, Advocate; For the Respondents

Headnote:(A) Haryana Warehousing Corporation Employees Pension Regulations, 1996 - Regulation 10(2)(ii) - Recovery of losses from retiral benefits - Writ petition challenging recovery exceeding four years of allegations, invoking prohibition under said Regulation - The orders from the respondent corporation quashed; recovery of Rs.7,84,717/- beyond initial amount was unlawful. (Paras 2, 12, 18)

(B) The principle established is that recovery proceedings initiated post-retirement should strictly adhere to specified time limits to ensure fairness and legality. (Paras 12, 14, 17)

(C) The differentiation in treatment among employees in similar positions raises questions of equality and justice, reinforcing the need for uniform application of regulations. (Paras 8, 17)

Facts of the case:
The petitioner, having retired on 30.06.2005, faced recovery orders exceeding four years post his retirement for alleged misconduct from gratuity. Appeals were dismissed on procedural grounds without addressing the core issue of time limitation.

Findings of Court:
The Court found the recovery actions by the corporation to be in violation of the mandatory provisions of Regulation 10(2)(ii) leading to quashing of all impugned orders.

Issues: The primary issues were the legality of the recovery actions beyond the four-year limitation; whether the orders were made in contravention of governing regulations; and the inequality in treatment amongst similarly situated employees.

Ratio Decidendi: The Court emphasized that disciplinary actions and recoveries from a retired employee's dues must adhere to the mandatory time limits set forth in the applicable regulations, underscoring need for procedural regularity.

Result: Writ petition allowed; all impugned orders set aside and recoveries ordered to be refunded with interest.

Table of Content
1. regulation 10 governs pension recovery. (Para 1 , 2 , 3)
2. petitioner's arguments against recovery procedures. (Para 4 , 8 , 10 , 12)
3. court's observations on jurisdiction and penalties. (Para 5 , 6 , 9 , 11 , 13)
4. respondents' counterarguments on procedure. (Para 14 , 15 , 16)
5. writ petition allowed; recoveries set aside. (Para 18)

JUDGMENT

Mr. Raj Mohan Singh, J.

The petitioner has preferred this writ petition for the issuance of an appropriate writ in the nature of certiorari, quashing the impugned order dated 06.11.2009 (Annexure P-3) passed by the respondent No.3 and also the order dated 05.06.2014 passed by the respondent No.2 in appeal. The challenge has also been made to the order dated 05.01.2015, vide which the second appeal of the petitioner was dismissed on the ground of non-maintainability and order dated 17.03.2015 passed by the respondent No.3, vide which even balance amount has been ordered to be recovered from the pension of the petitioner. The writ in the nature of mandamus is also sought, directing the respondents to release all the retiral benefits recovered from the petitioner along with interest in terms of instructions dated 20.02.2002 issued by the Finance Department.

2. The petitioner was working in the respondent-Department. He got his age of superannuation on 30.06.2005 and ultimately, superannuated from the services of the respondent Corporation. After the retirement, the petitioner being a retired employee is governed by the Haryana Warehousing Corporation Employees Pension Regulations , 1996. Regulation No.10 of the aforesaid 1996 Regulations is reproduced hereasunder:-

    "Regulation 10. Recoveries of losses from the pension.

    (1) The competent authority reserves to himself the right of withholding or withdrawing a pension or any part of it, whether permanently or for a specified period, and the right of ordering the recoveries from pension of the whole or part of any pecuniary loss caused to the Corporation, if in a departmental or judicial proceedings, the pensioner is found guilty for grave mis-conduct or negligence during the period of his Service.

    Provided that such departmental proceedings, if instituted while the employee was in Service, whether before his retirement, shall after the final retirement of the employee, be deemed to be proceeding under this regulation and shall be continued and concluded by the authority by which it was commenced, in the same manner, as if the employee had continued in Service. Final order under this regulation shall be passed by the competent authority.

    (2)Such departmental proceedings, if not instituted, while the employee was in Service, before his retirement,

    (i) Shall not be instituted save with the sanction of the Executive Committee;

    (ii) Shall not be instituted in respect of any event which took place more than four years before such institution; and

    (iii) Shall be conducted by such authority and in such place as the executive committee may direct and in accordance with the procedure applicable to departmental proceedings in which an order of dismissal from service could be made in relation to the employee during the Service.

    (3) No such judicial proceedings, if not instituted while the employee was in Service, whether before his retirement, or during his re-employment, shall be instituted in respect of a cause of action which arose or an event which took place more than four years before such institution; and

    (4) The Executive Committee shall be consulted before final orders are passed.

    (5) (i) Where any departmental or judicial proceedings is instituted under these regulations or where a departmental proceedings is continued under these regulations against an employee who has retired on attaining the age of compulsory retirement or otherwise, he shall be paid during the period commencing from the date of his retirement to the date of conclusion of such proceeding, when final orders are passed, a provisional pension not exceeding the maximum p

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