High Court Kerala High Court

P.K.John vs The Life Insurance Corporation Of on 28 May, 2009

Kerala High Court
P.K.John vs The Life Insurance Corporation Of on 28 May, 2009
       

  

  

 
 
  IN THE HIGH COURT OF KERALA AT ERNAKULAM

WP(C).No. 115 of 2008(L)


1. P.K.JOHN, SENIOR BRANCH MANAGER (RETD)
                      ...  Petitioner

                        Vs



1. THE LIFE INSURANCE CORPORATION OF
                       ...       Respondent

2. THE CHAIRMAN, LIFE INSURANCE CORPORATION

3. THE SECRETARY (PERSONNEL/ADMINISTRATION)

                For Petitioner  :SRI.GEORGE JACOB (JOSE)

                For Respondent  :SRI.S.EASWARAN

The Hon'ble MR. Justice S.SIRI JAGAN

 Dated :28/05/2009

 O R D E R
                            S. SIRI JAGAN, J.
                -------------------------------------------------
                       W.P.(C)No. 115 OF 2008
                -------------------------------------------------
                 Dated this the 28th day of May, 2009


                                JUDGMENT

By this writ petition, the petitioner is compelled to embark on

the 9th round of litigation for certain service benefits in view of the

adamant attitude of the respondents in refusing to grant the said

benefits in accordance with the judgments of this Court. The facts

necessary for the disposal of this writ petition may be summarised as

under.

2. The petitioner entered the service of the 1st respondent

Corporation as a Development Officer. He was promoted as

Assistant Branch Manager on 20.05.80. While he was working so,

criminal proceedings were initiated against the petitioner, which

ended in his conviction on 13.11.92. He filed an appeal against that

conviction. While so, he was placed under suspension based on the

conviction in the criminal case on 19.12.92. Subsequently based on

the very same conviction he was dismissed from service on 12.11.93.

Later on, his appeal was allowed and the conviction was set aside

and he was honourably acquitted, by judgment dated 22.11.93. After

WPC : 115/08
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acquittal, he filed representations seeking reinstatement in service.

But he was reinstated in service only on 08.04.94. Thereafter he

requested for his due promotions on par with his juniors. That also

fell on deaf ears. He approached this Court and obtained a judgment

in his favour. Still the respondents did not find it necessary to give

him promotion on par with his juniors. Therefore, he again

approached this Court by filing OP No.26520/99. A learned Single

Judge of this Court allowed that writ petition and directed the

respondents to give promotions to the petitioner reckoning his

seniority in the cadre of Branch Manager with effect from 06.05.88 on

par with his juniors. It was further made clear that the respondents

shall issue consequential orders granting monetary benefits to the

petitioner. Ext.P3 is the judgment of the learned Single Judge.

Respondents challenged that judgment in WA No.568/07. By Ext.P4

judgment, while confirming that part of the judgment of the learned

Single Judge directing promotion on par with his juniors, the Division

Bench set aside the other part directing payment of emoluments and

directed the 2nd respondent to consider and pass orders on the

question of monetary benefits arising from the orders to be passed

WPC : 115/08
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as directed by the learned Single Judge. Pursuant to that Ext.P10

order has been passed, in which the petitioner’s claim for promotion

as Divisional Manager was denied. He was given promotion as

Senior Branch Manager with effect from 23.05.92. However, that

was made notional up to 23.12.94 and monetary benefits were

granted only with effect from 24.12.94. Petitioner is challenging

Ext.P10 order to the extent it denies him promotion to the post of

Divisional Manager and emoluments for the period from 23.05.92 to

23.12.94.

3. According to the petitioner, in so far as in Ext.P3 judgment

of the learned Single Judge directing promotion to the petitioner

reckoning his seniority in the cadre of Branch Manager with effect

from 06.05.88 on par with his juniors has been upheld by the Division

Bench, he should have been given every promotion which was given

to his immediate junior in accordance with his seniority as on

06.05.88. Petitioner is entitled not only to promotion as Senior

Branch Manager but also to the further promotion as Divisional

Manager is the contention raised by the petitioner. He further

submits that for denying him monetary benefits for the period from

WPC : 115/08
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23.05.92 to 23.12.94 no reason whatsoever has been given in

Ext.P10. Therefore, according to him, he is entitled to monetary

benefits arising from the promotion with effect from 23.05.92 also.

The petitioner therefore seeks the following reliefs:

“i) to issue a writ in the nature of certiorari quashing Ext.P7
order to the extent it denies to the petitioner promotion to the cadre

of Divisional Manager during 1995-96 as had been done in the

case of his juniors.

i a) to issue a writ in the nature of certiorari or other

appropriate writ or order to quash Ext.P10 to the extent the same

denied the petitioner promotion to the cadre of Divisional Manager,

with consequential monetary benefits and monetary benefits from

23.5.1992 till 24.12.1994 in the cadre of Senior Branch Manager.

ii) to issue a writ in the nature of mandamus or other

appropriate writ order order directing the respondents to grant the

petitioner all monetary benefits in the cadre of Senior Branch

Manager from 23.5.1992 till the date of his promotion as Divisional

Manager.

iii) to issue a declaration that the petitioner is entitled to be

promoted to the cadre of Divisional Manager during 1995-96 on a

par with is juniors with reference to his seniority to the cadre of

Branch Managers as on 6.5.1988 with all consequential and other

monetary benefits.

iv) to issue a writ in the nature of mandamus directing the

respondents to recompute all the retiral benefits of the petitioner

reckoning his promotions to the cadre of Senior Branch Manager

and Divisional Manager and to grant the same to him within a

WPC : 115/08
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stipulated time-frame.”

4. A counter affidavit has been filed by the respondents

denying the claims of the petitioner. According to the respondents,

the entitlement of the petitioner for promotion as Divisional Manager

was specifically raised by the petitioner before the Division Bench

and in Ext.P4 judgment the Division Bench had categorically held

that the petitioner is not entitled to that promotion. That being so, the

petitioner cannot now rake up that issue again for claiming promotion

as Divisional Manager is the contention raised by the counsel for the

respondents. So far as the claim for monetary benefits is

concerned, the learned counsel for the respondents contends that in

so far as the petitioner had not worked for the period in question as

Senior Manager, he is not entitled to any monetary benefits arising

from the promotion till 23.12.94 when he joined as Senior Manager.

5. I have considered the rival contentions in detail.

6. In so far as the rights of the parties have been finally

concluded by Ext.P4 judgment, I am expected to consider in this writ

petition only as to whether all benefits as directed by Ext.P4

judgment has so given to the petitioner by the respondents. The

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operative portion of Ext.P4 judgment reads as follows:

“19. Though the petitioner had a contention that he is also
entitled to promotion to the post of Divisional Manager, on such

direction was issued by the learned Single Judge and in the

absence of any appeal by the Officer concerned, we do not

think that we will be justified to consider such claim raised on

behalf of the respondent herein.

20. In the result, the writ appeal is partly allowed and the

judgment of the learned Single Judge to the extent it directs

payment of emoluments is set aside. The matter is required to

be considered as directed above by the second respondent

afresh and pass appropriate orders. The second respondent

shall also consider and pass orders(after refixing the last drawn

pay) on the retiral benefit payable to him on that basis. The

above decision shall be complied with as expeditiously as

possible, at any rate, within three months from the date of

receipt of a copy of this judgment.”

7. The contention of the learned counsel for the respondents is

that paragraph 19 quoted above categorically deny the petitioner the

promotion as Divisional Manager. On the other hand, the learned

counsel for the petitioner submits that, that paragraph does not

categorically deny promotion to the petitioner as Divisional Manager.

It only said that in so far as there is no appeal by the petitioner

against the judgment, the Division Bench was not justified in

considering such a claim raised by the petitioner who was only a

WPC : 115/08
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respondent in the writ appeal. According to him, the relief of

promotion to the petitioner reckoning his seniority in the cadre of

Branch Manager with effect from 06.05.88 on par with his juniors

granted by the learned Single Judge has been upheld by the Division

Bench. Therefore he is entitled to all promotions which his

immediate junior had enjoyed before the date of retirement of the

petitioner is the contention of the petitioner. I am unable to

countenance the contention of the petitioner in that regard.

Paragraph 19 of the judgment is very clear to the effect that the

petitioner’s contention that he is also entitled to promotion to the post

of Divisional Manager has been specifically rejected, since according

to the Division Bench no such direction was issued by the learned

Single Judge, against which the petitioner had not filed any appeal.

As such, I do not think that the petitioner can, in view of paragraph

19 of Ext.P4 judgment now again claim promotion to the post of

Divisional manager without getting a clarification of Ext.P4 judgment

from the Division Bench, even if the Division Bench has misread

Ext.P3 judgment of the learned Single Judge in that regard.

8. But it is a different question with regard to monetary benefits

WPC : 115/08
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arising from promotion as Senior Branch Manager with effect from

23.05.92 to 23.12.94. I note that the learned Single Judge had in

Ext.P3 judgment directed payment of monetary benefits arising from

the order granting promotion. The Division Bench interfered with the

said direction on the ground that at the first instance it must be left to

the authority to consider whether or not valid reasons exist for denial

of such emoluments and specifically directed the 2nd respondent to

consider the question regarding entitlement of the petitioner for back

arrears after affording an opportunity of being heard to the petitioner.

Therefore, it was incumbent on the part of the 2nd respondent to give

specific reasons if he decides to deny the petitioner the monetary

benefits arising from the retrospective promotion with effect from

23.05.92. In Ext.P10 all what the 2nd respondent has said is this:

“On careful consideration of the facts, as have emerged from the
available records and on the basis of my observations

hereinabove, as also there being no significant difference in the

assignments of Branch Manager and Senior Branch Manager, I

hereby Order that Shri.P.K.John, SR No.208720, is granted

notional re-fixation in the scale of Senior Branch Manager from

23.05.92, the date from which he has been promoted to the cadre

of Senior Branch Manager vide officer Order ref:Per.Admn./07-

08/PO-PKJ dated 29.11.2007. Further, he would be paid

WPC : 115/08
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consequential benefits in the scale of Senior Branch Manager with

effect from 24.12.94, the date of his joining as Branch Manager.

Accordingly, I hereby direct the Divisional Office, Ernakulam to

settle the back arrears and re-calculate the retirement benefits

latest by February 29,2008. ”

9. The only reason given therein is that the petitioner joined in

the scale of Senior Branch Manager with effect from 24.12.94 only. I

am not satisfied that, that constitutes a valid reason for not giving the

petitioner the monetary benefits arising from the promotion

retrospectively with effect from 25.05.92.

10. Of course, the learned counsel for the petitioner relies on

the decisions of the Supreme Court in Baldev Singh v. Union of

India[(2005) 8 SCC 747] and Union of India v. Jaipal Singh

[(2004) 1 SCC 121]. He particularly refers to paragraph 4 of Jaipal

Singh’s(Supra) case which reads as follows:

“xxxxxx On the other hand, if as a citizen the employee or a

public servant got involved in a criminal case and if after initial

conviction by th trial court, he gets acquittal on appeal

subsequently, the department cannot in any manner be found fault

with for having kept him out of service, since the law obliges a

person convicted of an offence to be so kept out and not to be

WPC : 115/08
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retained in service. Consequently, the reasons given in the

decision relied upon, for the appellants are not only convincing but

are in consonance with reasonableness as well. Though exception

taken to that part of the order directing reinstatement cannot be

sustained and the respondent has to be reinstated in service, for

the reason that the earlier discharge was on account of those

criminal proceedings and conviction only, the appellants are well

within their rights to deny back wages to the respondent for the

period he was not in service. The appellants cannot be made

liable to pay for the period for which they could not avail of the

services of the respondent. The High Court, in our view,

committed a grave error, in allowing back wages also, without

adverting to all such relevant aspects and considerations.

Consequently, the order of the High Court insofar as it directed

payment of back wages is liable to be and is hereby set aside.”

The counsel would further submit that in so far as the petitioner has

not worked as Senior Manager till 23.12.94 the 2nd respondent was

justified in denying monetary benefits arising from the retrospective

promotion till 23.12.94.

11. I am unable to fully agree with the learned counsel for the

respondents. Petitioner was dismissed from service only on

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12.11.93. He was acquitted on 22.11.93. Therefore, going by the

above judgment, if at all, the petitioner could have been denied

monetary benefits only for the period from 12.11.93 to 22.11.93.

Learned counsel for the respondents would contend that pursuant to

the conviction on 13.11.92, petitioner was suspended from service

from 19.12.92 and therefore he is not eligible for monetary benefits

for the period of suspension also. I specifically asked the counsel for

the respondents as to why after the conviction on 13.11.92 the

respondents choose only to suspend the petitioner and waited till

12.11.93 to dismiss him. The counsel could not give me a plausible

answer. It is settled law that when a person is suspended from

service pending disciplinary proceedings or criminal proceedings,

once he is ultimately acquitted, he would be entitled to back wages

also, unless for specific other cogent reasons, he could have been

denied the said benefit. In this connection it should be noted that,

the Division Bench has, in Ext.P4 judgment, in the matter of

monetary benefits to the petitioner retrospectively, given the 2nd

respondent an opportunity in the first instance to consider whether

any valid reasons exist for denial of emoluments to the petitioner.

WPC : 115/08
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Despite granting such opportunity in Ext.P10 order, the 2nd

respondent was not able to come up with a plausible valid reason for

the denial except that the petitioner joined as Senior Manager only

with effect from 24.12.94, which is hardly a reason for denying back

wages and it is interesting to note that the 2nd respondent himself

observes in Ext.P10 that there is no significant difference in the

duties of Branch Manager and Senior Branch Manager. If there was

no change of duties, it is all the more reason to give monetary

benefits arising from the retrospective promotion, failing which the

retrospectivity would be meaningless. That being so, I am of opinion

that the petitioner is entitled to the monetary benefits arising from the

promotion given to the petitioner with effect from 23.05.92 till

23.12.94 also except for the period from 12.11.93 to 22.11.93, i.e.

the period between the date of dismissal of the petitioner from

service and the date of his acquittal in the criminal case. In this

connection I also note that the Division Bench had in Ext.P4

judgment noted that in appeal the petitioner was honourably

acquitted. Needless to say, if subsistence allowance had been paid

to the petitioner on the period of suspension, the amount paid as

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subsistence allowance is liable to be deducted while computing the

arrears to which the petitioner is entitled. Accordingly the writ petition

is allowed on the following terms:

Ext.P10 order is quashed to the extent of denying monetary

benefits arising from his retrospective promotion as Senior Manager

from 23.5.1992. The 2nd respondent is directed to pass fresh orders

granting the petitioner arrears of monetary benefits arising from the

promotion as Senior Branch Manager with effect from 23.5.1992 till

23.12.1994 except for the period from 12.11.1993 to 22.11.1993,

also within one month from the date of receipt of a copy of this

judgment. The amounts payable to the petitioner shall be disbursed

immediately thereafter.

S. SIRI JAGAN, JUDGE
ttb