Recovery from retiral benefits cannot be made based on stale claims or audit objections if no disciplinary proceedings were pending at the time of retirement and no final punishment order was implemented during the employee's service tenure.

HARPREET SINGH BRAR, J. (Oral)

1. The petitioner has approached this Court by way of the present writ petition under Articles 226/227 of the Constitution of India, praying for issuance of a writ in the nature of mandamus directing the respondents to release the retiral benefits of the petitioner along with interest in view of the order dated 15.09.2022 (Annexure P-2) passed by this Court in CWP-27594-2018.

2. On 27.03.2026, the following order was passed by this Court:-

“Learned counsel for the petitioner inter alia contends that the entire retiral dues of the petitioner have not been paid and an amount of Rs.5,33,151/- was deducted from the retiral dues on the basis of the audit reports for the year 2013-2014 and 2014-2015 on account of some deficiency of loss for which no disciplinary proceedings were ever initiated against the petitioner and further in the absence of any show cause notice or disciplinary proceedings, the amount from the retiral dues merely on the basis of audit reports is not permissible and he has relied upon Rajinder Singh vs. UHBVN , CWP-36946-2025 and Omi Devi vs. UHBVN , 2012(4) SCT 153

Mr. Agnihotri has filed his Power of Attorney on behalf of respondent No.3, which is taken on record. Registry to tag the same at an appropriate place.

Learned counsel for respondent No.3 seeks short accommodation to have complete instructions.

List on 07.05.2026

To be taken up immediately after the urgent list”

3. Learned counsel for respondent No.3 has filed written statement in the Court today, which is ordered to be taken on record. Registry is directed to place the same at an appropriate place. Copy thereof, has been supplied to the learned counsel for the petitioner during the course of the hearing.

4. Learned counsel for respondent No.3 submits that the petitioner was placed under suspension on account of allegations pertaining to embezzlement vide order dated 26.07.1980 (Annexure R-3/1). It is further submitted that thereafter a charge-sheet dated 24.01.1981 (Annexure R-3/2), along with statement of allegations, was served upon the petitioner and a regular departmental inquiry was conducted against him and upon conclusion of the inquiry proceedings, the petitioner was allegedly found guilty and recovery of an amount of Rs.88,311/- was ordered against him. It has further been contended that since the aforesaid amount could not be recovered during the service tenure of the petitioner, the same, along with accrued interest, was recalculated and quantified as Rs.6,13,151/-, which has subsequently been adjusted from the retiral dues payable to the petitioner upon attaining the age of superannuation on 31.05.2024.

5. I have heard learned counsel for the parties and have gone through the record of the case with their able assistance. It transpires from the record that after rendering long years of service with respondent No.3-Society, the petitioner retired from service on 31.05.2024. However, despite retirement, the retiral dues payable to the petitioner were not released, compelling him to approach this Court by way of filing CWP-27594-2018, which came to be allowed vide judgment dated 15.09.2022 (Annexure P-2). While disposing of the said writ petition, this Court had directed the respondents to release the retiral dues of the petitioner along with interest @ 6% per annum from the date the amount became due till its actual realization, in terms of the Full Bench judgment of this Court in A.S. Randhawa (supra).

5.1 It further emerges from the record that despite the aforesaid directions, the respondents failed to release the entire retiral dues to the petitioner, thereby constraining him