IN 3&3 HIGH CQURT OF xaemeeaaa AT BAweALGR5_
aaeas EHIS THE 2am 333 6? MARCH 2eG§e,3
PRESENT:
$52 HON'fiLE ea. JUSTECE N. Renae ,:%
ANS _ ._ . K
THE RGN'BLE MR. JUSTE£E A§5,eeAcHEAy§RE: '
¢..._.:"'
N7'
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WRIT A??EAL No.382é"QF 200
BETWEEN: - .~w.f=
1. State Benk3Qf;Myse:e,e _ x '"
a boéy cefisfiiiuted under thej _
Frovisiona ef the State Beak ef Indie
{Subsidiary Banks}«Ae:; 1959;
Head 0ffi¢e3,Banga;§xe-369 009,
Rep. hynizs Mahegingefiirecter.
2. State Benk*Qf"My3Qre'.
Empleyeeéfi Previdegt Fund;
State Bank C§_Myscre Eeilding,
xv K;G: Read, Bafiqaee:e--36Q O09,
Reé. gy its Trustees. ... A?PELLANTfS
:uvefB§A§fi;vS:V;§arasimhan, fidv.E
z'* AND3
ze*gK;S.Vasޤeva Tatachar,
__" Qged about 62 years,
4_$/9. K;S.Srinivaea ?etacher,
Eatlief werkieg as Office:
'*_"In Middle Management Grade Seelemll,
u State Bank of Mysore,
'a "PPS Section, Head Gffice,
" " "8ang&l<3pre-«S60 009. . . . R}?.3?OE'§DEi'*5T/S
{By Sri. P.S.Rejagapal, Senier Edvecate.} M//,w
2 WA N0.3826/G2
Thia Writ Appaai is filed u!Sec.4 0fz_th@
Karnataka High caurt Act, praying to set a3;d§"the
Order passed in W.P. NQ.6435f23QQ dated 13.G3,2Q@2;,
This Writ Appeal Gaming on for ,§re1imin:fy"'
Hearing, this day Kumar J., deliverwd the fQl$¢w;ngr._
J{3DGME§¥?Z' T A 'i'
The appellants have §xefe:red"tbis w;itWap§éal,t
chaliengiag the orde: passed_fiy"the léarned single
Judge; setting aside §nfiexéré95C"$hd*E" to the writ
patitien, undtrt@hich tfie¥a§§é;;afitéttava saught to
recmver thg»$r§§%§i¢§§y"§@nSi¢fiHtétd and also the
ameunt gag 't§t;t§§!bba%iA't%§m} the provifient fund
contribfl?iQh£flt*
2. At,$fie 'réSfi¢n§@%t was warking in the 1st
appellantwbadk, '*5 He retired. fremt service on
C 3G,O6:1§§§.'x Howéfiér, pxiar to his zetirament,
distipiéfiarytgrficeedings were initiated.against him
and twas _ke§t' unéez saspension pending enquiry.
n_4?bough héjzetired on 3G.G6.l999, for the gurpose of
*«Ac¢ntifi§in§ disciplinary preceedings, E3 was deemed
=£0'Q@ continued in service. He was paid provisienai
Kpéhsion after ratéxement ti?l he was §ismi3sed fram
servicé after the enquiry. Itt is not in dispute
that the raspondent had borrcwed housing loan frem
'&@covef ghe éues ta {ha bank an account of housing
$QanS}=_aéVaficeS, license fee and other recoveries
Aqaséggfihe previsionai gansian, which is a gart sf
,fihéi pénsiea fgomi which alas the amaunts can be
~iféc0ve§ed. Inscfar 33 the recovgry of the provident
wfuné is cencerned, he submits that the responéent
4 WA NO.3826ffi2
baak to initiate approgriate proceedings is reqgver
tha iaans, which are due ta the bank in accéffiaficg
with iaw and thus he set aside Annexuxesfifiréfifiififii
and a direction was issued. {Q mtfia ;a§§eiififiiSiit§'
pravide tfie entire pxevisianai:pen5i$mia#fiiaig§,:h@{
pravident fund in terms<i0§ fifi@i'Saidri9f§§;E'in_i
additien ta Cash equivalent %é%a;&s2§riviie§e leave
if avaiiable to the r%$§ond§n§i&é§%in5 Ag@iieved by
the same, the bank has gfi@fiegfi4fi'Ehi§igiit apgeal.
é. firi, 2fl$fV$N§r§éifi§§$;uiwlearned counsel
appearing f$:Vi#§ha§§g§fi3fi§$;C§§£ends under Section
§§ cf tfie $fat§i§%@%-fif{¥3SQi% Employees' {?ension)
Reguiatisns " i995iiVEh@;éjfiafter referredi ta as
"Reguiatians"xfsr_*sh0rfi}, the bank is emtitiad. to
fron» {he cfimmfltatien vaiae mf tha pensiea or the
pemsionzé: the famiiy penfiion. Whafi that being the
has given in writing that tha bank csuid recaver any
5 WA No.3826fO2
amount due from him to the bank from the aforesaid
pxoviéent fund contribution and eherefore, he oeeoot
have any grievance. ?he learned single Jedge has j
committed. serious error in ignopgng the"=eEofesaid_'
statutory provisions as well as the pnoertaking oi j
the respondent and therefore1_ the, EearneoA.oofineeio
submits that the impugoed Gide: _is ‘3fiéole eto be
quashed.
5. Per contra, the learned Cofiheel apgearing
for the respondent %Q??@t£eo the ieofioned order.
6. oTHewfecEeEareeeot in oispute. The short
question that arises fofi on: consideration is;
e» WheEeer*othe-«oank can make any
A fieooyeries ffom the provisional pension
V» ano_’wheehe; from the provident fund
A*.’oofiteihfiE§oe’of the empioyee, the loans
@oe f;5§e£he employee could be adjusted
to the loans due to the empioyerebank?
V”7g: Regulaiions 69 deals with the recovery of
benk’s dues is as under:
“fiecoverg gg Baek’s dues: The Bank
sheik be entitled to recover the dues to the
Bank on aooount of housing ioane, advances,
6 NR No.3826fG2
licenge fees, Qthex recaverias and
récoveries dua ta staff cowepezative czedgt
seeiety from the commutatio§T vaiue 0fiu tfi&_
ge§si0m 0: the pension 35 th@ .wf§mil§ r
pansign.”
Hmwever, Regulations 46 deais with érdvisicna; V
p@nsion, which reaés as under:
“Pzcvisiemal Pensiqg. W C1}An_ empléyee
whu has r@tir@d_ on attaining the_ age of
superannuafiflah 0% Qfiherwi$@gah§’égainst whom
any depa%tm%§tal QfZjué;éial proceeding are
institfited §r Qheié dé§érEméntal proceedings
ar§ ébntihué&[‘fiffircviéiéhai pension, aqual
to {hé ma2ifififi §%§§i®n which wcaid have been
admissible to him} would be allowed subject
tQ_ adfaatmafit T fiéainst final retirament
_b%n@fifis séncfiimned to him, upcn conclusian
A<_§f {fie yrgceedings but no recevery shall be
$ fiad§¥yh@r@ the pension finally sanctioned :5
'U léss"£hafl the pxovisianal Qension or the
fiénxibfi is reducad or hflthheid etc. either
pe%m&hentiy 3: far a specified period.
{2} In sucfi cases the gratuity' shall
set be paid ts such. an empioyaa umtii the
conclusion of the preceedings against him.
The gratuity shall be paid :9 him an
conclusion of the proceedings subject ta the
decigisn of t§e yrocaeding. Any racoveries
"gtovieieeel._penSion;"where the pension is finally
V$anctioned*ie less than the provisional pension or
xt'the'*:esoondent is not entitled for provisional
_§efieiofi after the departmefitei enquiry. Because of
u an Order of dismissal, the provisional pension paid
i"oeenot be recovered. No recovery could be made from
7 WE No.3826/S2
to be made from an employee shall be
adjusted against the amount of gratuity
payable.” ‘ ‘ V A
8. Reguiatioes 46 eeecificaiiy’ deaieiiwiteloefi
case of an employee who hae retited on~etteieiogxtee*a
age of superannuation andffl ag5inét»”iwfi¢m»4iég§
departmentai oz judicial pzoceeoieee are igiiifipfiedio
or continued, in which evefite hie sertioe ie oeemed
to have been contineed for et;e”*purpoSe’Aof said
investigation; fherefofe} the respondent continues
to work as _eetlief,’i”ffleE”§es} hot been paid any
saia§y.{ He has been paid the provisional pension.
Therefore; the’ eferesaia «provision makes it clear
that non reo4€;v:e¢’il3!_’;sha_li”‘”be made from the aforesaid
the’ peesioef ii reduced or withheid etc., either
permaeeptiy or for a specified geriod. Therefore,
the said provisional pension. It is in that
context, the learned single Judge has rightly held
K/_
8 NA Ne.3826/G2
it is gm the nature of a subsistence allowance, We
zould say it was eaid in lieu 05 Salary andxea he
had already reached superannuation and h1§_Ser§iee$l.
waa centinued enly fer the purpose _of’u§on&eeting *
enquiry, he was paid a provisiOQal,pehs3efi,’whiefi la
in lieu of the work he wee perfe:ming.W Lt is}noL_l
the amount paid t0 the emeleyeeuafteeeefilrement.
in that View of the ee%:e®e%%@e;§%@he ll§§£ of the
express provision coeealeed fin, {fig greguiatiens,
Regulations 49’ll$’ net ,g§p2:§é§ié,f” The case is
covered undef §e§uia§:§§§”4§;’l us such recevery is
permissiblem:fi;l3Q;-‘iherefore, the learned aingle
Judge rightly’eeifieei§e=§fineXure–“C” as illegal.
9,., :a§c§;:-3 as lladfiusting the employee’s
‘prQvifien;;fund Cdntfibution is concerned, all that
§he*TemplQyeee states in his letter is that he
underiakee fie make good, if the liabilities exceed
‘tee termlfial benefits. But, he wanted the terminal
ll eenefips Nincledieg the provident fund contributien
.fiO be Settled. it dees eat mean that the employee
‘efiésleuthorised the empleyex to adjust the prevident
ufund contribuéion towards the emeeet, whieh is
legally’ receverable. However, the leained single
9 WA §o.3826fG2
3udge hag resazved tha libérty is tha bank to
racsver tha amount due from the employee in a magnet
knowfi ts law. ?herefore, that §art of .§h§ Vfl:$e;
aiso do not call for intazferenca. Hence{ we §fi n§§
find any merit in this app@a1& §fi3 §a$§ t§e
following:
GRDER
The writ appeal i$”di$mis$e&};V
Z.A. Nos}; Cgfid ‘2. bf 2Ufi3 ara ordered. to be
Sd/..
Judge
Sd/-o
Judge
‘5~ Ksm*