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2023 Supreme(All) 2677

IN THE HIGH COURT OF ALLAHABAD
SUNITA AGARWAL, VIKAS BUDHWAR, JJ.
M.S Rana - Appellant
Versus
Union of India And 2 Others - Respondents
SPECIAL APPEAL NO. 413 OF 2022.
Decided On : 07-07-2023

Advocates appeared:
For the Appellant : In Person.
For the Respondents: A.S.G.I., Krit Raj Singh, Pankaj Rai.

Headnote:(A) Constitution - Article 226 - Service Law - The court addressed the authority's interpretation of disciplinary punishment, highlighting that the substitution of compulsory retirement with a lower grade must align with established benefits formulas. The appellant's claim for proper computation and related retirement benefits was upheld. (Paras 30-56)

(B) Labour and Industrial Law - Service Regulations - The principles of procedural fairness were discussed regarding the behavioral expectations on financial due recoveries from employees by banks, which should adhere strictly to statutes. (Paras 35-50)

(C) The court determined that punitive measures should reflect the severity of misconduct without inflicting excessive financial detriment, emphasizing a balanced approach to employee penalties. (Paras 41-62)

Facts of the case:
The appellant faced disciplinary action resulting in removal from service; procedural lapses were identified regarding the imposition of the penalty. It culminated in multiple legal proceedings, with past judgments influencing current decisions about retirement dues and penalties.

Findings of Court:
The punishment previously imposed was found disproportionate. The appellant's rightful computation of terminal benefits, including adjustments for past service duration, was affirmed, and a monetary compensation for undue delays was mandated.

Issues: The legitimacy of the disciplinary authority's actions, proper retirement benefits computation, and recovery of amounts attributed to misconduct were examined.

Ratio Decidendi: The court ruled that disciplinary actions must reflect fairness, ensuring a reasoned approach to the penalties imposed, with the employer required to justify any financial recoveries sought against an employee.

Result: The appeal was allowed, setting aside previous judgments restricting the calculation of retirement benefits.

Table of Content
1. writ petition for pension benefits. (Para 2 , 3)
2. appellant's disciplinary history. (Para 4 , 5 , 6)
3. court's determination of punishment. (Para 11 , 12 , 13)
4. adjustment of retirement benefits. (Para 36 , 37 , 38)
5. judgment set aside and petition allowed. (Para 62 , 63)

JUDGMENT

Sunita Agarwal, J.

Heard Sri M.S. Rana the writ petitioner/appellant in person, Sri Pankaj Rai and Sri Namit Srivastava learned Advocates appearing for the respondent bank.

2. This special appeal is directed against the judgement and order dated 20.4.2022 passed by the learned Single Judge in dismissing the Writ Petition No.27947 of 2018 ( M.S. Rana v. Union of India & others) filed by the appellant/petitioner namely MS. Rana. Sri MS. Rana, the appellant has appeared in person to argue the appeal. Shri Pankaj Rai and Sri Namit Srivastava have appeared for the respondent-bank. The writ petition, out of which the instant appeal has arisen, was filed with various reliefs amongst other as under:-

    "(i) issue a writ, order or direction in the nature of mandamus of commanding the respondent to fix the last drawn salary of the petitioner for fixation of basic pension and other terminal dues after its' fitment in revised pay scale effective from 01-11-2007 instead of 01-11-1997 as the services of petitioner was allowed to be continued till the date of superannuation i.e. 30-09-2009 by this Hon'ble court on decision WP no.562/2013 on 30-09- 2013, placed at Annexure-1 and accordingly payment of the pension, arrear of pension and other retiral benefits with 24% per annum with compound interest: due to culpable delay after adjusting the amount paid by respondent to petitioner.

    (ii) issue a writ, order or direction in the nature of mandamus of commanding the respondent to fix basic pension after adding FPA and PQP as per rules in revised last pay drawn.

    (iii) issue a writ, order or direction in the nature of mandamus of commanding the respondent to refund the amount of Rs.21.20 lakhs which has been recovered by respondent without complying the directions given by this Hon'ble court in review petition no. 101363/2016 dated 11-12-2017 for passing the final order by competent authority regarding recovery of losses.

    (v) issue a writ, order or direction in the nature of mandamus of commanding the respondent to pay difference amount of interest the PF/VPF from 01-10- 2004 to 18.8.2018 which is approximately 1.98 Lacs with interest of culpable delay.

    (vi) issue a writ, order or direction in the nature of mandamus of commanding the respondent to pay the difference amount of subsistence allowance from 1.11.2002 to 5.8.2004 (22 months) on account of wage revision effective from 01.11.2002 with 24% compound interest due to culpable delay.

    (vii) issue a writ, order or direction in the nature of mandamus of commanding the respondent to refund excess amount of interest Rs. 15869/- wrongly charged on amount of 56% from 27-11-2009 to 30-04-2018 instead of 11-12-2010 to 30-04-2018 with interest of culpable delay."

3. Besides the above, prayer was made for issuance of mandamus for award of interest on the arrears of pension and gratuity at the rate of 24% (compound interest) as also to award damages to the writ petitioner on account of culpable delay and harassment caused to him.

4. This case has a chequered history. The facts, in brief, relevant to decide the matter at hand are that the appellant/petitioner was suspended while working as an officer MMG Scale-III in Bank of Baroda. The charge sheet was served on him on 06.06.2002 and a order of removal of the appellant from service of the bank had been passed by the disciplinary authority on 05.08.2004. The order passed by the disciplinary authority was affirmed in appeal vide order dated 15.02.2005 passed by the departmental appellate authority. The appellant herein had preferred a Writ Petition No.30055 of 2005. During pendency of the said writ petition, the appellant had attained the age of superannuation on

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