Neutral Citation No. - 2023:AHC:143148-DB

Court No. - 29

Case :- SPECIAL APPEAL No. - 340 of 2023

Appellant :- Executive Officer, Nagar Palika Parishad Nautanwa

Respondent :- Mohd. Siddique And Another

Counsel for Appellant :- Ashok Kumar Tiwari,Ganesh Datt

Mishra

Counsel for Respondent :- C.S.C.,Rajesh Kumar Chaudhary

Hon'ble Mrs. Sunita Agarwal,J.

Hon'ble Anish Kumar Gupta,J.

The affidavit of the Executive Officer, Nagar Palika Parishad,

Nautanwa, District Maharajganj filed today is taken on record.

The said affidavit has been filed in compliance of the order dated

4.7.2023 passed by us, wherein the appellant was directed to

furnish explanation as to why interest be not awarded to the writ

petitioner for default on the part of the appellant in payment of

retiral dues in time.

In various paragraphs of the affidavit, it is sought to be stated by

the appellant that Nagar Palika Parishad, Nautanwa, District

Maharajganj is a small local body. The amount of taxes realized by

the Nagar Palika Parishad such as house tax and water tax are not

sufficient to meet the financial implication of the Nagar Palika

Parishad such as salary and retiral dues of the employees working

therein. It is stated that monthly financial budget allocated by the

4th State Finance Commission had been decreased since 2019. The

allocation of monthly financial budget issued by the State is not

sufficient to meet the obligations of the appellant. During Covid-

19 pandemic, budget for the month of May, 2020 and June, 2020

had not been provided by the 4th State Finance Commission. Due

to decrease in the income of Nagar Palika Parishad, it has suffered

heavy financial loss and more than 1 Crore is due to the employees

towards retiral/terminal dues. More than 44 lacs is due towards

salary of 65 employees working in the Nagar Palika Parishad and

approximately 5 lacs and odd is due towards Safai Karmchari

engaged on contract basis.

The Submission, thus, is that the appellant is not in a position to

meet the total liability of more than 1 Crore 77 Lacs towards

salary/retiral dues and wages payable to its employees.

Taking note of the said explanation, we are of the view that it is the

duty of the appellant who is holding the post of the Executive

Officer, Nagar Palika Parishad, Nautanwa, District Maharajganj, to

take adequate measures to realize the taxes pending as on date and

further measures to increase the income of the Nagar Palika

Parishad, Nautanwa, District Maharajganj which is an autonomous

body.

The Nagar Palika Parishad is required to increase its income by

taking appropriate measures and cannot remain dependent upon

the financial support of the State. There is no detail with regard to

the dues towards Nagar Palika Parishad of taxes etc.

The appellant namely the Executive Officer, Nagar Palika

Parishad, Nautanwa, District Maharajganj shall bring the said

position before the Additional Chief Secretary/Principal Secretary,

Department of Urban Development, Government of U.P.,

Lucknow to find out the solution to the problems being faced by

the local body as on date.

In any case, the employees cannot be deprived of their salary and

retiral benefits. The delay on the part of the appellant in payment

of retiral dues of the respondent/writ petitioner, based on the

explanation of financial crunch being faced by the Nagar Palika

Parishad, Nautanwa, District Maharajganj, is not acceptable.

No interference is called for in the order of the learned Single

Judge, wherein direction has been given to make payment of retiral

dues with interest at the rate of 8% per annum from the due date to

the date of actual payment.

It has been placed before us that after filing of the instant appeal,

the entire payment of retiral dues has been made to the writ

petitioner.

The appellant is directed to pay interest as per the direction given

by the learned Single Judge within a period of one month from

today.

Subject to the above observati