Pending surcharge proceedings bar release of retirement benefits despite exoneration in prior proceedings.

ORDER

The impugned order passed by the second respondent in Na.Ka. 1766/

2016/ Sa Pa dated 04.07.2025, is put under challenge in the present Writ Petition. Consequently, the petitioner has sought for a direction to the respondents to disburse the retirement benefits, namely, Encashment of Leave Salary, Special Provident Fund, General Provident Fund, Unearned Leave on Private affairs, Death cum Retirement Gratuity and Subsistence Allowance / Provisional Pension to the petitioner along with interest at the rate of 12% p.a., within the time limit as fixed by this Court.

2. Heard the learned counsels appearing on either side. With the consent of both sides, the present Writ Petition is taken up for final hearing at the admission stage itself.

3. The brief facts of the case leading to the filing of the present Writ Petition are as follows:-

(i) During the petitioner’s tenure as Manager at Central Co-operative Bank Ltd., Ootacamund, a surcharge proceedings dated 25.03.2015 & 31.03.2015 were initiated against the petitioner and few others for allegedly misappropriating the funds of the Society viz., J333, the Nilgiris District Teachers Co-operative Thrift and Credit Society, Udhagamandalam to the tune of Rs.83,67,562/-. Subsequently, criminal proceedings were also initiated as against the petitioner and others and the same were pending. Thereafter, the Deputy Registrar of the Society issued a show cause notice and in turn, the petitioner submitted a detailed explanation. Despite the said explanation dated 20.10.2014, the Deputy Registrar of the Co-operative Society, held that the petitioner is liable to pay a sum of Rs.83,59,000/- on the ground that the petitioner cleared the cheques presented for collection in the Central Operative Society.

(ii) Aggrieved over the same, the petitioner preferred Appeals in C.M.A.Nos.06 and 07 of 2017 before the Tribunal under the Tamil Nadu Co- operative Societies Act, 1983 and the said Appeals were allowed by an order dated 28.11.2022. When the said order had attained finality, in fact, there is nothing as against the petitioner to invoke the surcharge proceedings. In the meantime, the petitioner retired from service on 31.05.2017 on superannuation, however, the respondent failed to disburse the retirement benefits on the ground that the criminal cases are pending against the petitioner. Though legal notices was served upon the respondents and that the petitioner was discharged by the Appellate Authority, the Authorities have failed to disburse the retirement benefits and hence, the present Writ Petition.

3. The learned counsel for the petitioner would submit that the petitioner has been suffering a lot without the retirement benefits at the age of 67 years and had submitted a detailed representation to the respondents seeking to disburse the retirement benefits for which the second respondent had sent a communication indicating that the retirement benefits would be disbursed subject to the out come of the criminal case. He contended that when the surcharge proceedings itself as against the petitioner were absolved and the he was discharged from the departmental proceedings itself, there is no point in keeping the retirement benefits of the petitioner and the criminal proceedings cannot be an impediment for retaining the retirement benefits, thereby pleaded to set aside the impugned order. He further submitted that the present impugned order has been passed by the second respondent, stating that the surcharge proceedings in Tha.Thee No.1 of 2019 Sa.Pa dated 20.04.2020 is kept in abeyance on the ground of pendency of the appeals filed against the surcharge proceedings in Dha.Thee Nos.1/2014 and 2/2014, without providing any opportunity to the petitioner to place the orders passed by the