ORDER :

Heard learned counsel for the petitioner and learned counsel for the respondents.

2. This petition is filed by the petitioner to declare the impugned action of the 2nd respondent in not releasing balance leave salary fixed deposit along with interest as totally illegal, without jurisdiction and in violation of Articles 14, 16, 21 and 300-A of the Constitution of India apart from being in violation of the 1st respondent Bank Employees Service Regulations and law laid down by the High Court of Andhra Pradesh and further direct the respondents to release the petitioner’s withheld leave salary fixed deposited along with interest with all consequential reliefs and benefits.

3. The case of the petitioner, in brief, is as follows:

a) The 1st respondent bank is a A.P. State partnered District Cooperative Central Bank established under the AP Co-operative Societies Act and is an instrumentality of the State within the meaning of the Article 12 of the Constitution of India. The petitioner lastly worked as Asst. General Manager and retired on attaining the age of superannuation on 28.02.2009. During 2005, it was brought to the knowledge of the petitioner about the alleged misappropriation regarding the purity of Gold pledged to the bank by one of the loanees to avail gold loan during 1996 and the same was informed to the 1st respondent, who also lodged a police complaint.

b) The petitioner was issued with charge memo on 16.04.2005 vide Rc.No.B9/935/G.L./2004-05 alleging misappropriations of the year 2002. The petitioner submitted detailed explanation on 23.05.2005 denying all the allegations that he has no role in giving loans against the gold and that he never had the custody of the gold. The 1st respondent not satisfying with the explanation submitted by the petitioner, appointed an Enquiry Officer on 20.10.2005 vide Rc.No.B9/935/GL/2004-05.

c) Thereafter, the enquiry officer was changed by the 1st respondent on 30.12.2006 vide Rc.No.B9/935/GL/2004-05. Since, then the enquiry is still pending. On 28.02.2009, the petitioner retired as Assistant General Manager on attaining the age of Superannuation of 58 years vide Rc.No.B9/Estt./2008-09, dated 28.02.2009 with condition subject to disposal of pending charges.

d) All the retirement benefits were released except eight months leave salary was not released. The petitioner made a representation to the 1st respondent to release the leave salary worth Rs.2,00,000/- as he met with an accident and he was in need of money to meet expenses. The 1st respondent was willing to release the leave salary on condition that Rs.80,000/- will be taken as a fixed deposit as security and upon giving an understanding that the same will be adjusted towards the bank, if the case against the petitioner is proved. As the petitioner is in pathetic state, he has given undertaking dated 24.08.2009 to the effect that the fixed deposit so taken shall be treated as security to be adjusted towards the bank in the event if the case is decided against him.

e) The bye-laws of the District Central Co-operative Bank, Warangal does not have any provision to continue disciplinary proceedings after retirement and in such an event retirement benefits cannot be withheld after the employee has retired. Till date the enquiry is pending and the respondents are not releasing the leave salary along with interest even after retiring as early as on 28.02.2009. Aggrieved by the same the writ petition is filed.

3. The counter affidavit filed by the 2nd respondent, in brief, is as follows:

a) The 2nd respondent admitted the facts those that are not specifically admitted in the counter. All the retirement benefits of the petitioner were already released subsequent to his retirement including the leave encashment. The allegation that terminal benefits regarding part of leave encashment was withheld in lieu of departmental proceedings is absolutely false. The petitioner executed letter dated 24.08.2009 that his terminal benefits were paid conseq