High Court Kerala High Court

M.Shamsudeen vs Govt.Of Kerala on 6 August, 2008

Kerala High Court
M.Shamsudeen vs Govt.Of Kerala on 6 August, 2008
       

  

  

 
 
  IN THE HIGH COURT OF KERALA AT ERNAKULAM

OP.No. 18664 of 2001(V)



1. M.SHAMSUDEEN
                      ...  Petitioner

                        Vs

1. GOVT.OF KERALA
                       ...       Respondent

                For Petitioner  :SRI.C.UNNIKRISHNAN (KOLLAM)

                For Respondent  :GOVERNMENT PLEADER

The Hon'ble MR. Justice P.N.RAVINDRAN

 Dated :06/08/2008

 O R D E R
                            P.N.RAVINDRAN                          CR
                       =====================
                         O.P.No.18664 of 2001
                      ======================
                Dated this the 6th day of August, 2008

                               JUDGMENT

The petitioner is a pensioner. He retired from service as District

Supply Officer, Thiruvananthapuram on 31.7.1998 on attaining the age

of superannuation. This Original Petition is filed challenging Ext.P1 order

dated 7.5.2001 issued by the State Government, whereby, the appeal

filed by the petitioner against the order passed by the Commissioner of

Civil Supplies on 5.1.2000 fixing the sum of Rs.25,696/- as his liability

and directing recovery of the said amount from his death cum retirement

gratuity, was rejected. The petitioner has also sought disbursement of

the retirement benefits in full together with interest thereon at 18% per

annum, from the date of his retirement. The brief facts of the case are

as follows:

2. While the petitioner was working as District Supply Officer,

Thiruvananthapuram, the authorisation issued to two authorised

wholesale distributors, AWD No.29 run by Sri.G.Ramesan at Naruvamood

and AWD No.30 run by M/s Ahammed Khan & Company at

Balaramapuram was suspended pending enquiry, under Clause 51(8) of

the Kerala Rationing Order 1966, by the Deputy Controller of Rationing,

South Zone, Kollam. The order suspending the authorisation of the

aforesaid authorised whole sale distributors was communicated to the

O.P.No.18664/2001 2

Taluk Supply Officer, Neyyattinkara, who, on 12.10.1997 took over the

stock of rationed articles available with the aforesaid two authorised

wholesale distributors and entrusted it with AWD No.T22 at Kattakada

run by APVN & Co. and AWD No.24 at Neyyattinkara run by

Smt.Sarasamma respectively. The value of the stock seized from AWD

No.29 was Rs.11,27,847/- and from AWD No.30 was Rs.9,68,229/-. In

his letter, No.CS2-5954/97 dated 13.11.1997, the petitioner directed the

Taluk Supply Officer, Thiruvananthapuram to deposit the value of the

stock in the Syndicate Bank, Statute Branch, Thiruvananthapuram.

According to the petitioner, such a direction was issued on the erroneous

assumption that government orders permitted dealers in rationed

articles to avail loan facilities from banks. On realising that the said

facility is available only to authorised retail distributors and not to

authorised wholesale distributors, the petitioner corrected the mistake

committed by him and directed the Taluk Supply Officer, Neyyattinkara to

deposit the amount in revenue deposit in the Sub Treasury. The money

was accordingly deposited in the Sub Treasury, Neyyattinkara. For having

directed the Taluk Supply Officer to deposit the value of the seized

rationed articles in the Syndicate Bank, instead of depositing it in

revenue deposit, disciplinary action was initiated against the petitioner

and a memo of charges was issued to him on 18.5.1998.

3. The charge against the petitioner was that he had, with ulterior

motives colluded with the suspended authorised wholesale distributors

O.P.No.18664/2001 3

and allowed private individuals to handle government money indefinitely

in violation of Article 269 (21) of the Kerala Financial Code, Volume I and

the standing directions issued by the State Government and the Board of

Revenue regarding the mode of remittance of the value of rationed

articles held by suspended authorised wholesale distributors. It was also

alleged that by the said act, he caused financial loss to the Government.

On receipt of the memo of charges, the petitioner submitted Ext.P2

reply dated 20.7.1998 denying the charges. Shortly thereafter, the

petitioner retired from service on 31.7.1998. The Commissioner of Civil

Supplies found the petitioner and the Taluk Supply Officer guilty of the

charges and directed recovery of the sum of Rs.51,392/- from them in

equal moieties. The liability of the petitioner was fixed at Rs.25,696/=.

The petitioner thereupon filed an appeal before the State Government

followed by O.P.No.29734 of 2000 in this Court praying inter alia for an

expeditious disposal of the said appeal. By judgment delivered on

23.10.2000 in O.P.No.29734 of 2000, this Court directed the State

Government to dispose of the appeal filed by the petitioner against the

order passed by the Commissioner of Civil Supplies, within three months

from the date of receipt of a copy of the judgment. By Ext.P1 order

passed on 7.5.2001, the appeal was rejected. This Original Petition was

thereupon filed seeking the following reliefs:

i) issue a writ of mandamus or any
appropriate writ, order or direction
commanding the respondents to disburse entire
pensionary benefits legally due to the petitioner

O.P.No.18664/2001 4

along with interest @ 18% p.a. from 31.7.1998
forthwith.

ii) issue a writ of certiorari or any other
appropriate writ, order or direction quashing
Ext.P1 and declare that no amount is liable to
be recovered from the DCRG of the petitioner.

4. While this Original Petition was pending, a consolidated liability

certificate was issued on 7.11.2001 fixing the sum of Rs.78317/- as the

petitioner’s liability. The petitioner thereupon filed O.P.No.26912 of 2002

in this Court challenging the liability certificate inter alia on the ground

that the liability was fixed more than 3 years after his retirement from

service. The first item of liability noted in the said certificate was the

sum of Rs.25,696/- referred to in Ext.P1 which is impugned in this

Original Petition. The second item of liability was the sum of Rs.52,621/-

payable to the Kerala State Civil Supplies Corporation. By judgment

delivered on 18.12.2003, a learned Single Judge of this Court allowed

O.P.No.26912 of 2002, and quashed the fixation of liability on the short

ground that the fixation was beyond the time limit of three years

stipulated in Note-3 to Rule 3 of Part III, KSR. In view of the said

judgment, this Original Petition was closed with the observation that no

further orders are required. The respondents in O.P.No.26912 of 2002

carried the matter in appeal. By judgment delivered on 29.6.2005 in

W.A.No.1233 of 2004, a Division Bench of this Court held that the

fixation of liability in respect of item No.2 of the liability certificate was

beyond the time limit of three years. To that extent, judgment of the

O.P.No.18664/2001 5

learned Single Judge in O.P.No.26912 of 2002 was upheld. As regards the

sum of Rs.25,696/-, which is a subject matter of this writ petition, the

Division Bench held that the fixation of the said amount as petitioner’s

liability was made within time. The judgment of the learned Single Judge,

in so far as it related to the said item of liability was set aside. The

petitioner had brought to the notice of the Division Bench, which

disposed of Writ Appeal No.1233 of 2004, that this Original Petition was

closed as unnecessary by the learned Single Judge in view of the

judgment impugned in the Writ Appeal and that in the light of the view

taken by the Division Bench, he may be allowed to pursue his remedies

regarding that part of the liability. Taking note of the said submission,

the Division Bench of this Court in Writ Appeal No.1233 of 2004

observed as follows:

“At this point of time counsel for the petitioner
pointed out that on the basis of the impugned
judgment O.P.No.18664 of 2001, wherein he
had challenged the fixation of liability on merit
has been closed. It is his own creations.
Therefore he has to find out the way out. He
shall be free to pursue his remedies, whatever,
available against that judgment. It shall not
detain us from setting aside that part of the
judgment which quashes the first part of
Ext.P2 liability certificate.

In the result, the appeals are allowed in
part setting aside that part of the judgment
which quashed item No.1 in Ext.P2 liability
certificate. In every other respect the judgment
is sustained. Whatever balance amount
available to the petitioner shall have to be
disbursed within two months.”

5. In the light of the observations made by the Division Bench, the

O.P.No.18664/2001 6

petitioner filed R.P.No.801 of 2005 in this Original Petition. By order

passed on 16.2.2006, the review petition was allowed and the judgment

closing this Original Petition was recalled. That is how this Original

Petition has come up before me for hearing.

6. I have heard Sri.C.Unnikrishnan, the learned counsel appearing

for the petitioner and Sri.K.Sandesh Raja, the learned Government

Pleader appearing for the respondents. I have also considered the

submissions made at the bar by the learned counsel appearing on either

side and the pleadings and the materials made available to me.

7. In this Original Petition, the petitioner contends that though he

had initially issued an order on 13.11.1997 directing the Taluk Supply

Officer to remit the value of the rationed articles seized from AWD No.29

and AWD No.30 in the Syndicate Bank, Statute Branch,

Thiruvananthapuram, immediately on realising the mistake, he directed

the Taluk Supply Officer to deposit the amount in revenue deposit in the

Sub Treasury, Neyyattinkara. The petitioner further states that the value

of the seized rationed articles was not deposited in the Syndicate Bank

as alleged and that the delay in remittance of the value of the seized

rationed articles in revenue deposit in the Sub Treasury, Neyyattinkara

was due to the delay in realising the value thereof from AWD No.T22

and AWD No.24, with whom the seized rationed articles were entrusted.

The petitioner also contends that the suspended authorised whole sale

distributors had already paid for the rationed articles when they lifted it

O.P.No.18664/2001 7

from the Food Corporation of India and that the value of the seized

rationed articles handed over to the substitute authorised whole sale

distributors is not money belonging to the Government. The learned

counsel for the petitioner contended that the entire amount was payable

to the suspended authorised whole sale distributors and that the interest

on the money realised from the substitute authorised wholesale

distributors was also payable to the suspended authorised wholesale

distributors only. It is further contended that the claim for interest, if

any, can arise only from the owner of the stock, namely, the suspended

authorised wholesale distributors and that the Government have no right

to retain and appropriate the value of the seized rationed articles. The

learned counsel for the petitioner also contended that the right of the

Government, if any, is only to recover the amounts payable by the

suspended authorised wholesale distributors towards their liability to the

Government if orders in that regard have been issued in terms of Clause

51(8) of the Kerala Rationing Order and that as no such order had been

passed against the suspended authorised wholesale distributors, it

cannot be said that any loss has been caused to the Government merely

because the petitioner had initially directed remittance of the value of

the seized rationed articles in the Syndicate Bank.

8. The second respondent has filed two separate counter affidavits

resisting the writ petition. It is contended that by directing the Taluk

Supply Officer to remit the value of the rationed articles seized from AWD

O.P.No.18664/2001 8

No.29 and AWD No.30 in the Central Bank of India in violation of the

departmental standing orders, the petitioner has caused loss to the

Government. In this context, it is relevant to note that while in Ext.P1 it

is stated that the petitioner directed the money to be remitted in the

Syndicate Bank, in paragraph-6 of the counter affidavit dated 27.9.2006,

it is stated that the petitioner directed the Taluk Supply Officer to remit

the value of the seized rationed articles in Central Bank of India. On

noticing this disparity I called for and perused the records in Writ Appeal

No.1233 of 2004. In Writ Appeal No.1233 of 2004 also, the respondents

herein had contended that the petitioner directed the Taluk Supply

Officer to remit the value of the seized rationed articles in Central Bank

of India, violating the departmental standing orders. In the counter

affidavit filed by the respondents in O.P.No.26912 of 2002 also, in

paragraph-2, it is stated that the petitioner directed the Taluk Supply

Officer to remit the value of the seized rationed articles in Central Bank

of India violating the departmental standing orders. I also noticed that

the respondents do not have a case either in the counter affidavit filed

by them in O.P.No.26912 of 2002 or in Writ Appeal No.1233 of 2004

that the value of the seized rationed articles was actually deposited in

the Syndicate Bank or in the Central Bank of India. The reason for fixing

the sum of Rs.25,696/- as the petitioner’s liability to the Government or

materials to show that it represents one half of the actual loss caused

to the Government due to the misconduct/negligence of the petitioner is

O.P.No.18664/2001 9

not also discernible from the pleadings therein. In the counter affidavits

filed in this writ petition also the reason for fixing the said amount as

the petitioner’s liability or materials to show that it represents one half of

the actual loss caused to the Government are not placed on record. What

was the basis for arriving at the estimate of the loss caused to the

Government is not discernible from the pleadings. The date on which

the value of the rationed articles was realised from the substitute

authorised wholesale distributors is not disclosed. The date on which the

amount was remitted in the Sub Treasury is also not set out. Whether

there was any inordinate delay in remitting the money in the Sub

Treasury after it was realised from the substitute authorised wholesale

distributors is also not stated.

9. It is now settled by a series of decisions of this Court, the latest

of which is the decision of the Full Bench of this Court in Raveendran

Nair v State of Kerala (2007(1)KLT 605) that the Government have the

right to order recovery from the pension including gratuity, the whole

or any part of the pecuniary loss caused to the Government, besides the

right to withhold or withdraw the pension or any part thereof,

permanently or for a specified period. It is also now well settled that

while the right to withhold pension or any part thereof can be exercised

invoking Rule 59(b) of Part III KSR even if no pecuniary loss has been

caused to the Government, the right to effect recovery can be exercised

only if any pecuniary loss has in fact been caused to the Government due

O.P.No.18664/2001 10

to the inaction/negligence or misconduct of the pensioner. It is also

settled by the decision of a Full Bench of this Court in Xavier v Kerala

State Electricity Board (1979 KLT 80) that disciplinary proceedings

commenced against a government servant while he was in service can be

continued after his retirement for the purpose of ordering the recovery of

any pecuniary loss caused to the Government. The Full Bench in Xavier’s

case (supra) held that the disciplinary enquiry initiated against a

government servant while he was in service gets transmuted into an

enquiry under Rule 3 of Part III KSR on his retirement, for the purpose of

ordering the recovery of any pecuniary loss caused to the Government by

reason of his misconduct or negligence. In Vasudevan v Secretary to

Government, Vigilance (B)Department (1979 KLT 489), a Division Bench

of this Court following the decision of the Full Bench of this Court in

Xavier v Kerala State Electricity Board (supra) held that after

retirement, the disciplinary proceedings initiated against a government

servant before his retirement can be continued for the limited purpose of

recovering the loss, as contemplated by Rule-3 of Part III KSR. In the

instant case, in view of the decision of this Court in Writ Appeal No.1233

of 2004 to which the petitioner and the respondents herein are parties

and the principles laid down by this Court in the decisions referred to

above, the order passed by the Commissioner of Civil Supplies on

5.1.2000 directing recovery of the sum of Rs.25,686/- from the death

cum retirement gratuity payable to the petitioner and Ext.P1 order

O.P.No.18664/2001 11

affirming it cannot be faulted either for the reason that they were passed

after his retirement or for the reason that the liability was not fixed

within three years thereafter. Then the only question that remains to be

considered is whether the fixation of the sum of Rs.25,696/- as the

petitioner’s liability is sustainable in law and on facts.

10. As noticed earlier, Ext.P1 proceeds on the basis that the

petitioner directed the Taluk Supply Officer to remit the value of the

seized rationed articles in Syndicate Bank, Statute Branch,

Thiruvananthapuram. In the counter affidavit filed by the respondents in

this Original Petition, it is contended that the petitioner directed

remittance of the money in Central Bank of India. In O.P.No.26912 of

2002 and in Writ Appeal No.1233 of 2004 also the stand taken is that

the petitioner directed remittance of the money in Central Bank of India.

There is no material produced before me or available in the judges

papers in Writ Appeal No. 1233 of 2004 to which the petitioner and the

respondents herein are parties, to show that the value of the rationed

articles realised from the substitute authorised wholesale distributors

was in fact deposited either in Syndicate Bank or in Central Bank of

India. There is also no pleading much less any proof as regards the date

on which the value of the rationed articles seized from the suspended

authorised wholesale distributors was realised from the substitute

authorised wholesale distributors and the date on which the said

amount was deposited in the Sub Treasury in revenue deposit. In short,

O.P.No.18664/2001 12

there is no material to show that due to the erroneous direction issued

by the petitioner, which was later withdrawn, there was any delay in

remittance of the amount in the revenue deposit after it was realised

from the substitute authorised wholesale distributors. There is also no

material to show that the money had been deposited after it was

realised from the substitute authorised wholesale distributors either in

the Syndicate Bank or in the Central Bank of India. There is also no

material to show that the Government was in any way entitled to the

value of the rationed articles seized from the suspended authorised

wholesale distributors and realised from the substitute authorised

wholesale distributors, or any part thereof. Whether any amount was due

from the suspended authorised wholesale distributors to the Government

and as a result of the erroneous direction issued by the petitioner, the

Government suffered any loss on that count is also not discernible from

the pleadings or the materials produced in the case. It is not in dispute

that the money was deposited in revenue deposit in the Sub Treasury.

How the Government sustained the loss of Rs.51,392/- (one half of

which is fixed as the petitioner’s liability) is also not discernible. Clause

51(8) of the Kerala Rationing Order 1966 empowers the District Collector

or any officer of the Civil Supplies Department not below the rank of a

Taluk Supply Officer to amend, vary, suspend or cancel the appointment

of an authorised wholesale distributor, if on inspection of the stock and

accounts any shortage or excess in the quantity of rationed articles in

O.P.No.18664/2001 13

the stock is found or any irregularities in the accounts are detected or

there is non-compliance with any of the directions issued by the

competent authorities or there is contravention of the provisions of any

order issued under Section 3 of the Essential Commodities Act, 1955.

Clause 51(8) also to order forfeiture of whole or any part of the amount

deposited by the authorised wholesale distributor as security under sub

clause (5) of Clause 51 and also to order realisation of the amount

equivalent in value to the cost of the rationed articles including the cost

of any quantity of rationed articles misappropriated by falsification of

accounts and all sums collected in excess by way of transport charges,

handling charges, profit, etc. and gained by the authorised wholesale

distributor due to incorrect fixation of price or any other defect in

calculation. Sub-clause (8B) of Clause 51 of the Kerala Rationing Order,

1966 states that all sums found due to the Government by virtue of the

agreement executed by the authorised wholesale distributor under

Clause 51(6) shall be recovered from the authorised wholesale distributor

and his movable and immovable properties under the provisions of the

Kerala Revenue Recovery Act as though such sums are arrears of land

revenue. The said provision also stipulates that for the purpose of

recovery, the quantum of liability of the authorised wholesale distributor

shall be adjudicated by the Government or the Commissioner of Civil

Supplies or the District Collector or any officer of the Civil Supplies

Department not below the rank of a Taluk Supply Officer after giving the

O.P.No.18664/2001 14

authorised wholesale distributor an opportunity of being heard. It has

not been pleaded or proved that any order had been passed under sub-

clause (8) of Clause 51 of the Kerala Rationing Order, 1966, fixing any

liability on the suspended authorised wholesale distributors and that any

amount was ordered to be realised from them, under sub-clause (8B). It

has not also been pleaded or proved that due to the direction issued by

the petitioner on 13.11.1997, which was later withdrawn, the

Government could not realise any amount due from the suspended

authorised wholesale distributors after orders were passed under sub-

clauses (8) and (8B) of Clause 51 of the Kerala Rationing Order, 1966.

Since the suspended authorised wholesale distributors had furnished

security, forfeiture of the security does not depend upon realisation of

the value of the rationed articles from the substitute authorised

wholesale distributors and its deposit in the Sub Treasury in revenue

deposit. There is thus total lack of material to show that due to the

direction issued by the petitioner on 13.11.1977, which was admittedly

withdrawn later, the Government suffered any pecuniary loss. In short,

the liability fastened on the petitioner by the Commissioner of Civil

Supplies has not been shown to be the pecuniary loss caused to the

Government.

11. Under Rule-3 of Part III KSR, the Government can recover only

the actual pecuniary loss which it has suffered due to misconduct/

negligence of the government servant. To invoke Rule-3, pecuniary loss

O.P.No.18664/2001 15

should have been in fact caused to the Government. Even the loss

caused to a government organisation can be recovered, but it is not

possible for the Government to realise the loss caused to a private

individual, except in cases where the Government had to compensate

that private individual due to the wrongful act of the government servant.

In the instant case, the entitlement of the Government to the sum of

Rs.51,392/- has not been established. There is no material except the

mere assertion by the State Government that the petitioner and the

Taluk Supply Officer have caused a loss of Rs.51,392/- to it, to hold that

the Government had in fact suffered any pecuniary loss and that the

petitioner is liable to re-imburse one half of the said sum of money to

the Government.

12. In Kolappa Pillai v State of Kerala (1982 KLT 551), Kochu

Thommen (J) (as his lordship then was) held as follows:

“The object of this rule is not to inflict a
punishment upon a retired government servant, but
to recover from him amounts to recompense the
Government for the loss caused by him. This recovery
may be made either by withholding or withdrawing a
pension or by specifically ordering recovery from the
pension payable to him. In all these cases recovery is
made by resort to denying the petitioner so much
pension as will make up for the loss caused to the
Government. This is the object of Rule 3. Although
such recovery may cause hardship to the person
affected, it is not by way of punishment that that
recovery is made, but only to adjust against specific
loss found to have been caused by the person, I
cannot accept the contention that, even where no loss
is found to have been caused, amounts can be
withheld, withdrawn or recovered from pension
merely because a proceeding initiated under the
C.C.&A Rules is transmuted as a proceeding under

O.P.No.18664/2001 16

the K.S.R. The object of the law in allowing such
transmutation is not to inflict a punishment upon the
retired government servant, but to make him pay for
the pecuniary loss which he has caused. This rule
cannot be of any avail to the Government unless loss
has been caused and found to have been caused”

(emphasis supplied)

13. In George v Tahsildar Cochin (1992 (2) KLT 919) Sreedharan

(J) (as his lordship then was) held, following the decision in Kolappa

Pillai v State of Kerala (supra) that, if the misconduct alleged against

the government servant is not one causing pecuniary loss to the

Government, no proceeding as contemplated by Rule-3 to withhold

payment of the death cum retirement gratuity can be initiated against

him. In Mary v State of Kerala (1994(2) KLT 853) a learned Single Judge

of this Court held that there must be a casual connection between the

act of the employee and the pecuniary loss incurred by the government.

It was held that as Rule-3 employs the words ‘loss caused to the

government’ (emphasis supplied), the essence of the right to invoke

that provision is that the Government servant concerned must have

caused pecuniary loss to the Government and that there must be a

casual connection between the loss caused and the act or omission of

the employee. In Raveendran Nair v State of Kerala (2007(1) KLT

605) the Full Bench of this Court drew a distinction between withholding

or withdrawing the pension or any part thereof and the right to order

recovery from the pension of the whole or part of any pecuniary loss

O.P.No.18664/2001 17

caused to the Government. As regards the former, it was held that the

Government has the power, even if no pecuniary loss has been caused to

it to withhold or withdraw the pension or any part thereof, whether

permanently or for a specified period. As regards the latter, the Full

Bench held that recovery of the pecuniary loss is compensatory in

nature. It was held that where the misconduct of the employee/pensioner

has caused pecuniary loss to the Government, they can exercise both

rights and if no pecuniary loss is involved, the first right, namely, the

right to withhold or withdraw the pension or any part thereof alone can

be exercised. The principle that emerges from the aforesaid decisions is

that while the Government have the right to recover the pecuniary loss

caused to it by the employee or the pensioner, it must be established

that the misconduct or negligence of the employee/pensioner resulted in

pecuniary loss to the Government. The fact that the Government

suffered pecuniary loss has to be established in the disciplinary enquiry,

if such enquiry was initiated while the employee was in service or in

proceedings initiated against the pensioner under Rule 3 of Part III,

K.S.R.

14. In the instant case, as noticed by me earlier, there is no

material apart from the mere assertions in Ext.P1 and in the counter

affidavits to show that the Government had actually suffered any

pecuniary loss. It has not been shown that due to the wrong direction

issued by the petitioner on 13.11.1997 to his subordinate, the Taluk

O.P.No.18664/2001 18

Supply Officer, which was later withdrawn, the Government in fact

suffered any pecuniary loss. There is no finding that the said erroneous

direction was complied with and it resulted in pecuniary loss to the

Government. The entitlement of the Government to the sum of

Rs.51,392/- has not been stated with clarity. On what count, the

Government suffered the loss of Rs.51,392/- is not discernible. Whether

the money was in fact deposited in the Syndicate Bank/Central Bank of

India ,whether it was directly remitted in the Treasury, whether there was

any inordinate delay between its realisation from the substitute

authorised wholesale distributors and remittance in revenue deposit in

the Sub Treasury are not set out. Apart from the mere assertions in the

pleadings and in Ext.P1 that the Government have suffered a loss of

Rs.51,392/- and that the petitioner is liable to make good one half of

that sum of money, there is no cogent material on the basis of which, it

can be held that the misconduct or negligence of the petitioner caused

loss to the tune of Rs.51,392/- to the Government. In short, everything is

left to guess work. In my opinion, there is also no material to show that

there was any casual connection between the act of the petitioner and

the alleged loss. There is no material at all to show that any pecuniary

loss was in fact caused to the Government by reason of the petitioner’s

conduct.

For the reasons stated above, I hold that Ext.P1 is not sustainable

in law. I, accordingly quash Ext.P1 and direct the respondents to disburse

O.P.No.18664/2001 19

to the petitioner, the sum of Rs.25,696/- withheld from his death cum

retirement gratuity, together with interest thereon at 6% per annum from

1/10/1998 (two months after the date of his retirement) in terms of the

direction issued by the Apex Court in State of Kerala v Padmanabhan

Nair(1985 KLT 86). The payment as directed above shall be made within

two months from the date of receipt of a copy of this judgment.

The Original Petition is allowed as above. No costs.

P.N.RAVINDRAN, JUDGE

css/

O.P.No.18664/2001 20

P.N.RAVINDRAN, J.

O.P.No.18664 of 2001

JUDGMENT

.8.2008

O.P.No.18664/2001 21