Bombay High Court High Court

Unknown vs Maharashtra Agro Industrial on 5 February, 2010

Bombay High Court
Unknown vs Maharashtra Agro Industrial on 5 February, 2010
Bench: F.I. Rebello, A. R. Joshi
                                                                    16.wp.1930-05                    1
             This Order is modified/corrected by Speaking to Minutes Order




                          IN THE HIGH COURT OF JUDICATURE AT BOMBAY
                                ORDINARY ORIGINAL CIVIL JURISDICTION




                                                                                            
                               WRIT PETITON NO.1930 OF 2005 




                                                                    
    Mr.Dhairyasheel A. Jadhav,                               ]
    Aged : 59 years, Indian                                  ]
    Inhabitant, residing at                                  ]
    E-504, Kalpita Enclave,                                  ]




                                                                   
    Swami Nityanand Marg,                                    ]
    Andheri (East), Mumbai                                   ]
    - 400 069.                                               ]       ..Petitioner.
          Versus




                                                     
    Maharashtra Agro Industrial                              ]
    Development Corporation Ltd.,   ig                       ]
    A Government of Maharashtra                              ]
    Undertaking, having its office                           ]
    at Rajan House, Prabhadevi,                              ]
                                  
    Mumbai - 400 025.                                        ]       ..Respondent.


                                      ...
          


    Mr.Neel Helekar, Advocate for the Petitioner.
    Mrs.Anjali Purav, Advocate for Respondent No.1.
       



                                      ...

                                      CORAM :  F. I. REBELLO & 





                                               A.R. JOSHI,  JJ. 

DATED : FEBRUARY 05, 2010.

ORAL JUDGMENT (PER F.I.REBELLO,J).:

1. Rule. By consent heard forthwith.

2. The petitioner superannuated in the services of the Maharashtra Agro

Industrial Development Corporation Ltd., (Respondent No.1) on

31.12.2003. At the relevant time, he was working as Manager

::: Downloaded on – 09/06/2013 15:34:55 :::
16.wp.1930-05 2
This Order is modified/corrected by Speaking to Minutes Order

(Project). The petitioner was relieved from the service by issuing

letter dated 31.12.2003 after close of office hours. The letter further

sets out that the petitioner had done valuable contribution in the

development and prosperity of the Corporation.

3. According to the petitioner, after the petitioner was served with the

relieving order, a memorandum came to be served upon him on the

very same day i.e. 31.12.2003 alleging misconduct when the

petitioner was working as Fertilized Manager (Fertilization) in the

Fertilizer Divn. of the Corporation in Head Office. According to the

petitioner, the chargesheet is false and fabricated. The petitioner has

filed a reply to the said chargesheet.

4. After being allowed to superannuate and as no enquiry was initiated

when the petitioner was in service, according to the petitioner, he is

entitled to gratuity and consequently he submitted an application

under Rule 7 of the Payment of Gratuity Act on 18.7.2004. The

respondents however have not paid the gratuity and hence an

application was made to the controlling authority. According to the

petitioner when the respondent came to know about it, an order of

enquiry was initiated by issuing order on 4.2.2005 and appointing an

enquiry officer to conduct the enquiry.

5. It is the case of the petitioner that the respondents have no power to

conduct enquiry against the petitioner after his

::: Downloaded on – 09/06/2013 15:34:55 :::
16.wp.1930-05 3
This Order is modified/corrected by Speaking to Minutes Order

superannuation/retirement, from the service of the respondent.

Further there is no relationship of employer and employee. As

gratuity has not been paid and enquiry is being proceeded with the

present Petition.

6. The respondents have filed their reply. The major contention in the

reply is that the chargesheet issued on 31.12.2003 was in respect of

the lapses / misconduct during the year 2001-02 and 2002-03 and that

relieving was subject to the enquiry being conducted against the

petitioner in respect of the chargesheet dated 31.12.2003.

ig The

memorandum to initiate enquiry was initiated on 31.12.2003 when he

was allowed to retire. It is specifically set out that the petitioner is

governed by the Maharashtra Civil Services (Discipline and Appeal)

Rules and an enquiry under the said rules can be conducted even

after superannuation where such an enquiry has been initiated before

superannuation. It is further set out that Rule 27 of the Maharashtra

Civil Services (Pension) Rules, 1992 provides for conducting an

enquiry against the employee after superannuation and in view of the

said provisions and underlying principle and principle analogous

thereto an enquiry can be continued after superannuation.

7. At hearing of this Petition, on behalf of the petitioner it is submitted

that respondent No.1 has not adopted the Maharashtra Civil Services

(Pension) Rules, 1982 which permit an enquiry to conduct even after

::: Downloaded on – 09/06/2013 15:34:55 :::
16.wp.1930-05 4
This Order is modified/corrected by Speaking to Minutes Order

superannuation and in these circumstances the question of continuing

the enquiry does not arise. The Maharashtra Civil Services

(Discipline & Appeal) Rules do not provide for continuing enquiry

which was initiated at the time when the employee was in service.

The learned Counsel relies on the judgment of the Supreme Court in

Bhagirathi Jena Vs. Board of Directors, O.S.F.C. and others

reported in (1999) 3 Supreme Court Cases 666 in support of his

contention that in absence of the provisions for continuing an enquiry

the enquiry cannot be continued.

8. On behalf of the respondent, the learned Counsel fairly concedes that

they have not adopted the Maharashtra Civil Services (Pension)

Rules, 1982. However, places reliance on the judgment of the

Supreme Court in U.P. State Sugar Corporation Ltd., & Ors. Vs.

Kamal Swaroop Tondon reported in 2008 II CLR 563. It is

submitted that the enquiry can be continued once it was initiated. It

is, therefore, submitted that the action of the respondent is legal.

9. We have heard the learned Counsel for the parties. We may gainfully

refer to sub rule 27 (2)(a) of the Maharashtra Civil Services (Pension)

Rules, 1982, which reads as under.

“27. Right of Government to withhold or withdraw pension.
(1) …..

(2)(a) The departmental proceedings referred to in sub-rule (1), if
Instituted while the Government servant was in service whether
before his retirement or during his re-employment, shall, after the

::: Downloaded on – 09/06/2013 15:34:55 :::
16.wp.1930-05 5
This Order is modified/corrected by Speaking to Minutes Order

final retirement of the Government Servant, be deemed to be
proceedings under this rule and shall be continued and concluded by
the authority by which they were commenced in the same manner as
if the Government servant had continued in service.”

It is thus clear that in the event departmental proceedings was

instituted it can be continued and concluded “as if the Government

servant has continued in service”. Thus, by a deemed fiction though

relationship of employer and employee has ceased, the rules continue

the relationship pursuant to which the departmental proceedings can

be proceeded with. There is no provision in the Maharashtra Civil

Services (Discipline & Appeal) Rules, which provide for

continuation of enquiry for major misconduct by issuing of

chargesheet. The penalties are set out under Section 5. If a

Government servant is not in service then none of those penalties can

be imposed. Thus, any enquiry initiated and in which there is no

provision for continuing enquiry must cease on the employee being

allowed to superannuate, in the absence of the provisions like rule 27

of the Maharashtra Civil Services (Pension) Rules, 1982.

10. Let us now examine the authorities cited at Bar to consider the

contentions urged on behalf of the petitioner herein.

In Bhagirathi Jena (supra), we may gainfully refer to paragraph

Nos.6 & 7 which read as under :

“6. It will be noticed from the abovesaid regulations
that no specific provision was made for deducting any

::: Downloaded on – 09/06/2013 15:34:55 :::
16.wp.1930-05 6
This Order is modified/corrected by Speaking to Minutes Order

amount from the provident fund consequent to any
misconduct determined in the departmental enquiry nor
was any provision made for continuance of the
departmental enquiry after superannuation.

7. In view of the absence of such a provision in the
abovesaid regulations, it must be held that the

Corporation had no legal authority to make any
reduction in the retiral benefits of the appellant. There is
also no provision for conducting a disciplinary enquiry
after retirement of the appellant and nor any provision

stating that in case misconduct is established, a
deduction could be made from retiral benefits. Once the
appellant had retired from service on 30-6-1995, there
was no authority vested in the Corporation for

continuing the departmental enquiry even for the
purpose of imposing any reduction in the retiral benefits

payable to the appellant. In the absence of such an
authority, it must be held that the enquiry had lapsed and
the appellant was entitled to full retiral benefits on

retirement.”

Thus, it is clear that only in the event that there is a

provision for continuing the enquiry, the enquiry can be

continued. The Supreme Court noted the judgment in the case

of Takhatray Shivadattray Mankad v. State of Gujarat

reported in 1989 Supp (2) SCC 110, but distinguished it on

the ground that there was specific provision in the form of Rule

241-A which enabled imposition of a reduction in the pension

or gratuity of a person after retirement.

11. The question is whether the judgment in the case of Kamal

Swaroop Tondon (supra) has taken a view which is different

::: Downloaded on – 09/06/2013 15:34:55 :::
16.wp.1930-05 7
This Order is modified/corrected by Speaking to Minutes Order

than the view taken in Bhagirathi Jena (supra). Both the

judgments are of co-ordinate Benches. The judgment in

Bhagirathi Jena (supra) has not been considered in Kamal

Swaroop Tondon’s case (supra). On the facts there, it will be

clear that the respondent had superannuated and show cause

notice was issued after retirement i.e. after office hours at 6:45

p.m. on January 31, 2000. The contention urged on behalf the

Corporation before the Supreme Court was firstly that if

relationship of employer and employee continues and the

proceedings can be continued and consequently under the U.P.

State Sugar Corporation Ltd. General Service Rules, 1988 such

proceedings could have been initiated even after an employee

has retired since they related to the recovery of losses caused to

the Corporation by the respondent – employee. The learned

Supreme Court observed that retiral benefits are earned by an

employee for long and meritorious services rendered by

him/her. They are not paid to the employee gratuitously or

merely as a matter of bounty. It is paid to an employee for

dedicated and devoted work. The Court then referred to the

principles of gratuity.

On behalf of the respondent herein it is contended that the

::: Downloaded on – 09/06/2013 15:34:55 :::
16.wp.1930-05 8
This Order is modified/corrected by Speaking to Minutes Order

ratio of the judgment in Kamal Swaroop Tondon’s case

(supra) is that there can be no rigid, inflexible or invariable

test as to when the enquiry should be continued and when they

should be allowed to be dropped. The Court then observed the

effect of delay in conducting the enquiry and observed that

there cannot be laid down a universal proposition that if there

be delay in initiation of proceedings for a particular period they

must necessarily be quashed. The Court went on to observe

from the case law considered that it is clear that the

proceedings could have been continued since they were

initiated for recovery of loss sustained by the Corporation due

to negligence on the part of the respondent employee.

It may be noted that it was not in dispute that the

proceedings could have been initiated even after the employee

had retired since relating to recovery of loss caused to the

Corporation as there were rules for that purpose.

12. In our opinion, it is no doubt true, that the gratuity is a

terminal benefit and is subject to the terms and conditions.

Withholding of the gratuity can therefore be only if there be the

provisions for withholding it in the Act or if there being any

service condition which so provide. A person cannot be

::: Downloaded on – 09/06/2013 15:34:55 :::
16.wp.1930-05 9
This Order is modified/corrected by Speaking to Minutes Order

charged for a misconduct if it does not constitute a misconduct

within the definition of misconduct either in terms of the

standing order or the service regulations. Similarly no enquiry

can be conducted for misconduct if there being no statutory

provisions. In the absence of any statutory provisions for

continuing the enquiry, in our opinion, the ratio of Bhagirathi

Jena’s case (supra) which has directly dealt with the issue

would be applicable. In the case of Bhagirathi Jena (supra)

the Court itself noted the effect of absence of a provision. In

our opinion, therefore, the ratio of Bharirathi Jena’s case

(supra) would squarely apply. The enquiry therefore against

the petitioner after his superannuation in the absence of a

provision to continue enquiry is without authority of law.

13. In view of the above, the following order :

:: O R D E R ::

[i] Rule is made absolute in terms of prayer clause (a), which

reads as under :

“(a) That this Hon’ble court be pleased to issue a writ of
certiorari or a writ in the nature of mandamus or any other
appropriate writ direction or order under Article 226 of the
Constitution of India and direct the action of the
respondent of conducting the enquiry against the

::: Downloaded on – 09/06/2013 15:34:55 :::
16.wp.1930-05 10
This Order is modified/corrected by Speaking to Minutes Order

petitioner to be illegal and bad in law and further direct
the respondent to withdraw the action of the departmental
enquiry against the petitioner.”

[ii] In the facts and circumstances of the case, there shall be

no order as to costs.

     (A.R.JOSHI, J.)                                        (F.I. REBELLO,J.)




                                            
                          
                         
      
   






                                                           ::: Downloaded on - 09/06/2013 15:34:55 :::