IN THE HIGH COURT OF JUDICATURE AT MADRAS

DATED: 30/01/2004

CORAM

THE HONOURABLE MR. JUSTICE N.KANNADASAN

WRIT PETITION No.3071 of 1997

and

WMP No.5166 of 1997

S.Ramar Pandian .. Petitioner

-Vs-

Chief Executive Officer,

Tamil Nadu Khadi and

Village Industries Board,

"Kuralagam',

Chennai 600 108 .. Respondent

This writ petition is filed under Article 226 of the

Constitution of India praying for the issue of a Writ of

Certiorarified Mandamus, calling for the records relating to the proceedings

of the Chief Executive Officer, Tamil Nadu Khadi and Village Industries Board

"Kuralagam", Chennai-600 108 (the respondent herein) in this Rc.No.12637/P1/94

dated 20.1.1997 and to quash the same in so far as it related to the entire

Clause-3 of the Order relating to the recovery of the sum of Rs.1,58,405/-

from the petitioner and direct the respondent to pay the petitioner all the

amounts withheld by the respondent pursuant to the impugned order, with

interest at the rate of 18% per annum from 20.1.1997 till the date of

disbursement.

!For Petitioner : Mr.S.Subbiah

^For Respondent : Mr.B.Diwakar

:ORDER

By consent of both the parties, the main writ petition itself

is taken up for final hearing.

2. The above writ petition is filed by the petitioner

challenging Clause-3 of the proceedings of the respondent in Rc.No.12637/P1/94

dated 20.1.1997 in so far as it relates to the recovery of a sum of Rs.1

,58,405/- and for a consequential direction, directing the respondent to pay

the amounts withheld along with the interest at the rate of 1 8% from

20.1.1997 till the date of disbursement.

3. It is contended by the petitioner that he has joined the

services of the State Government in its Khadi Department as Grade-I Assistant

during the year 1959 and during the year 1960 when a separate Department was

constituted viz., Tamil Nadu Khadi and Village Industries Board (hereinafter

called as the "Board"), he was absorbed as Grade-I Assistant. The petitioner

has served as Grade-I Assistant from 1964 to 1977 and later on he was promoted

as Central Khadi Officer in the year 1989 and again promoted as Assistant Khad

i Officer with effect from 1.1.1991. On attaining the age of superannuation,

the petitioner was permitted to retire from the services through the

proceedings of the respondent in Rc.No.16466/94/G-IV(1) dt.28.3.1994 with

effect from 31.3.1994. The said order of retirement proceeds to the effect

that the individuals mentioned therein, numbering 11 employees, were permitted

to retire from their services and the concerned Officers were requested to

relieve them after obtaining necessary undertaking in respect of any amount

which is found to be recoverable from them later on. Except the above

observation, the said order of retirement does not attach or reserve any

condition in respect of the employees including the petitioner. However, even

at the earlier point of time, the Assistant Director of the respondent-Board

has issued a memo dated nil.6.1993, which proceeds to the effect that a sum of

Rs.1,55,590.25 representing sale proceeds was not collected, while the

petitioner was in service as Grade-I Assistant at Tiruvellore depot for the

period from 1963-64 to 1978-79. The petitioner has submitted a reply to the

said memo and it is only thereafter, he was permitted to retire without

reserving any right to initiate disciplinary proceedings. Subsequently, the

respondent-Board has sent a further memo on 4.8.1994, reiterating the same

averments of the earlier memo, to which the petitioner has submitted a reply.

Thereafter, the respondent-Board, by a letter dated 26.2.1996 has informed the

petitioner that a sum of Rs.1,4 1,207.70 is still remaining as outstanding and

he was directed to explain in detail about the non-recovery of the said

amount. As per the directions, the petitioner appeared in the Office and

explained the steps that he has initiated to recover the amount and also

pointed out that the other Officers of the Board have failed to initiate st