The court affirmed prior rulings restricting recovery processes based solely on unchallenged circulars while clarifying adherence to established service rules.

JUDGMENT

(WP(C) Nos.15278/2019, 19845/2019)

Both these writ petitions have been preferred by the employees of the Kerala State Beverages (Manufacturing and Marketing) Corporation Ltd., challenging both the recovery of the amount and the reimbursement of sums already paid pursuant to the liability fixed on them. In fact, the issue with respect to the recovery had already been considered by this Court in WP(C) No. 21217 of 2018 and connected matters, wherein the circulars in this regard had been under challenge, and ultimately the Court found that, by the time it considered the writ petition, certain amounts had already been paid by the employees, and the Court accordingly disposed of the said writ petition with the following directions:

“i. The circular dated 20.12.2017 issued by the Managing Director of the respondent Corporation (Ext.P3 in WP(C)

No.32713 of 2019) is set aside.

ii. It is declared that the respondent Corporation cannot proceed against its employees on the basis of the afore circulars.

iii. It is further declared that the respondent Corporation can proceed for the realisation of the loss suffered by the respondent Corporation from its employees, only with reference to the provisions of the Service Rules approved by the Government pursuant to G.O.(MS) No.4/86/TD dated 07.01.1986.

iv. The concluded processings on the basis of the circulars dated 08.04.2011, 20.12.2016 and 20.12.2017 against the employees of the respondent Corporation, who have not challenged such recovery steps, are not to be affected by the principles laid down in this judgment.'

2. Later, the matter was considered by the Division Bench. Now, the issues that remain in these writ petitions relate to the further recovery pursuant to the refixation of the amount, as well as the reimbursement of the amount already paid. As the issue has attained finality, this Court finds that, since there is no challenge against the circulars in these writ petitions, the matter cannot be reopened. However, in these cases, it is noted that, with respect to the payment effected by the employees in one case, i.e., W.P.(C) No. 15278 of 2019, the prayers pertain to a further refixation of liability. That cannot be permitted, since the entire issues have already been settled in the judgment of this Court dated 18.11.2025 in W.P.(C) No. 21217 of 2018. As the matter has already been considered by this Court, the refixation of the amount on the basis of the circulars cannot be allowed.

3. As regards the prayer in W.P.(C) No. 19845 of 2019, which concerns the recovery of the amount, it also cannot be considered by this Court, as the said issue had been examined earlier. This Court cannot now enter into a finding so as to reopen the matter. Under such circumstances, W.P.(C) No. 19845 of 2019 cannot be allowed. Likewise, the prayer regarding further recovery under the circulars, which had already been interfered with by this Court, cannot be reopened. Those findings were rendered on the basis that the principles of natural justice had not been complied with while fixing the liability. However, it was specifically held by this Court that the respondent Corporation is free to proceed with the realisation of the loss suffered by it from its employees, only in accordance with the provisions of the Service Rules approved by the Government pursuant to G.O.(MS) No.4/86/ TD dated 07.01.1986. Under such circumstances, the further steps taken pursuant to the approved Service Rules are left open.

Under such circumstances, W.P.(C) No. 15278 of 2019 is disposed of with a direction that no further fixation of liability shall be made on the basis of the earlier circulars which have already been interfered with by this Court. W.P.(C) No.19845 of 2019 is dismissed, as the prayer cannot be allowed.