SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

1999 Supreme(All) 1004

IN THE HIGH COURT OF ALLAHABAD
BEFORE THE HONble O. K. SETH, J.
JAGDISH NARAIN CHOPRA - Appellant
Versus
ALLAHABAD DISTRICT COOPERATIVE BAND LTD. - Respondents
Civil Misc. Writ Petition 14162 Of 1996
Decided On : 07/21/1999

Advocates Appeared:
A.K.Goyal, T.P.SINGH

An audit objection cannot be kept pending for an indefinite period, and employees are entitled to receive their retirement benefits earned by their years of service.

Headnote:

Audit Objection - Retiral Benefits - The court held that the audit objection against withholding the disbursement of the retiral benefits does not seem to be bonafide and appears to have been lapsed by reason of an inordinate delay and negligence on the part of the respondents. The court emphasized that an audit objection cannot be kept pending for an indefinite period and that the petitioner is entitled to receive his retirement benefits earned by his years of service.

Fact of the Case:

The petitioner retired and was paid his provident fund but not his gratuity and other terminal benefits due to an audit objection raised in 1984, which was only communicated to him after his retirement in 1996.

Finding of the Court:

The court found that the audit objection was not communicated to the petitioner during his tenure in service and that the delay in disbursing the retiral benefits was unjustified. The court ordered the respondent to pay the balance retiral benefits with interest.

Issues: Delay in payment of retiral benefits due to an audit objection, communication of audit objection to the petitioner, and justification for withholding the disbursement of benefits.

Ratio Decidendi: The court held that an audit objection cannot be kept pending for an indefinite period and that the petitioner is entitled to receive his retirement benefits earned by his years of service.

Final Decision: The writ petition succeeded, and the court ordered the respondent to pay the balance retiral benefits with interest within six months. A writ of mandamus was issued, and no costs were awarded to the petitioner.

( 1 ) THE petitioner after his retirement had been paid the amount of his provident fund due to him. But the Gratuity and other terminal benefits were not paid to him on the ground as disclosed in the counter Affidavit that there was an audit objection in respect of certain accounts when the petitioner was posted in Hewett Road branch. Such statements were made in paragraph 2 of the Counter affidavit In Rejoinder Affidavit, the petitioner has clarified that he was posted in Hewett Road Branch sometimes in between 1980 and 1984. The audit objection was in respect of the provident fund amount of Nagar Mahapalik, Allahabad in respect of their employees that were transferred to the sundry Creditors account in the Bank nagar Mahapalika was asked to furnish the details of the individual account number of the employees so that the provident fund amount received by the bank could be credited in the respective individual account of the employees. The Nagar Mahapalika had furnished the details some of its employees without furnishing the details of the others. Therefore, part of the amount was transferred to the individual accounts. After such transfer, a sum of Rs. 1,50,000/- still remained in the Sundry creditors Account and could not be credited in the individual accounts till the petitioner was in Hewett Road branch. It is alleged that on this ground, the audit objection was raised. In paragraph 4 and 5, the above statement has been made in the Rejoinder Affidavit. Whereas in paragraph 6, the petitioner has contended that he was never informed about the audit objection until it was disclosed in the Counter Affidavit. Neither any notice to show cause was ever issued on the petitioner nor there was any finding that the petitioner was responsible nor there was any material to show that the bank had ever suffered any loss.

( 2 ) IF there was an audit objection in respect of an account in 1984, in that event, it was open to the bank to take steps so long the petitioner was in employment. The petitioner had retired sometimes in 1995 and this ground of audit objection is being raised only when the retirement benefits became due that too, by a letter dated 13th July, 1996. Nothing has been disclosed that the alleged audit objection was ever communicated to the petitioner during his tenure in service.

( 3 ) IN such circumstances, after hearing Mr. A. K. Goyal learned counsel for the petitioner and Mr. T. P. Singh learned counsel for the respondent, it appears that the audit objection against withholding the disbursement of the retiral benefits does not seem to be bonafide and appears to have been lapsed by reason of an inordinate delay and laches and negligence on the part of the respondents. Bank having not come out with cases that the bank had ever suffered any loss on account of such audit objection due to inaction on the part of the petitioner, it would not be justify delay in or denial of payment of retiral benefits. Even if, there was any audit objection, the same ought to have been clarified and resolved in the meantime. An audit objection cannot be kept pending for an indefinite period. After a person has put in his youth and the prime of life in the service of the bank, he is entitled to receive his retirement benefits which is not a charity shown to him but is a deferred payment which he had earned by reason of his service rendered.

( 4 ) THEREFORE, the respondent shall pay the balance retiral benefits payable to the petitioner as early as possible preferably, within a period of six months from the date of copy of this order is communicated to the concerned respondent. The amount due shall carry interest @ 12% simple during the period it became due and till it is paid.

( 5 ) IN the result. The writ petition succeeds and is allowed. Let a writ of mandamus do accordingly issue. However, there will be no order as to costs. Let a certified copy of this order be given to the counsel for the petitioner on payment of usual charges. Petiti



Click Here to Read the rest of this document

1
2
3
4
5
6
7
8
9
10
11
SupremeToday Portrait Ad
supreme today icon
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon Back to top