IN THE HIGH COURT OF KERALA AT ERNAKULAM
WP(C) No. 34192 of 2005(U)
1. T.C.KRISHNAN NAMBOOTHIRI,
... Petitioner
Vs
1. THE KERALA KHADI AND VILLAGE
... Respondent
For Petitioner :SRI.R.RAJASEKHARAN PILLAI
For Respondent : No Appearance
The Hon'ble MR. Justice V.GIRI
Dated :11/09/2007
O R D E R
V. GIRI, J.
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W.P.(C). NO. 34192 OF 2005
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Dated this the 11th day of September, 2007
J U D G M E N T
Petitioner retired from service of the respondent on 31.10.02. The
main grievance of the petitioner in this writ petition is the non-disbursement
of retiral benefits including pension and Death Cum Retirement Gratuity.
Reference is made in this writ petition to Ext.P1 order under which
petitioner was placed under suspension pending enquiry on 16.1.01as also
Ext.P2 memo of charges and statement of allegations. Apparently the
allegation in Ext.P2 seems to be that petitioner has misappropriated an
amount of Rs. 2,75,112/- . Petitioner had filed Ext.P4 reply to the same.
Petitioner contends that subsequently Ext.P5 communication was issued
to him asking him to appear before Sri. V.M.Mathachen, described as the
Enquiry Officer, and he had actually appeared before Sri. Mathachen on
17.12.03. Nothing further was heard from the enquiry officer. According to
the petitioner, thereafter on 17.1.04 he received Ext.P6 communication
directing him to remit an amount of Rs. 7,62,481.85/-, stated to be the
liability in relation to the Elanthoor Khadi Grama Soubhagya for the period
from 1996-97 to 2000-01.
2. Ext.P6 was challenged by the petitioner in W.P.(C) No.5532/04.
After hearing the learned Standing Counsel for the Board as well, the said
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writ petition was disposed of by Ext.P7 judgment. The operative portion of
the said judgment is relevant and is extracted hereunder
“Learned Standing Counsel for the Board, Sri. V.V. Joshy was
heard in the matter. He submits that by way of Ext.P6, only
the position is made known to the petitioner and recovery will
be effected only after completing the enquiry proceedings.
Petitioner offers all Co-operation in the enquiry proceedings. I
record the submission of the learned Standing Counsel for the
Board that recovery proceedings will not be initiated till such
time enquiry is completed.”
3. As stated above, the writ petition was filed seeking a direction
to the respondent to pay DCRG and his actual pension (what is now being
paid to him as provisional pension at 75% of the admissible pension) along
with arrears on 1.11.02. Petitioner also seeks a declaration that no
amount can be realised from the petitioner charged on his pensionary
benefits.
4. A counter affidavit has been filed by the Board on 4.9.07 inter
alia contending that after Ext.P7 judgment, the enquiry, which is referred to
therein, was completed after giving fair chance of hearing to the petitioner
and a report was submitted on 25.2.04. Ext.R1(a) is referred to as the said
enquiry report and Ext.R1(b) is described as the sworn statement given by
the petitioner before the enquiry officer. The enquiry report was placed
before the Board on 16.3.04 wherein it was resolved that both criminal and
civil actions may be initiated against the petitioner to realise the total
liability of Rs.7,30,893.80/-. It is contended that in spite of sending
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repeated notices, petitioner has failed to clear his liability and the Board
has initiated steps to conduct a Vigilance enquiry against the petitioner and
a case is therefore registered as V.E. 13/2005 PTA in the Vigilance and
Anti Corruption Bureau, Pathanamthitta. Apparently, the investigation is
going on. It is stated that the liability has been quantified after completing
the enquiry, as directed by the Board and demand notice was served on
the petitioner for realising the amount due within the stipulated time.
5. I have heard Sri. Rajasekharan Pillai, learned counsel for the
petitioner and Sri. K.P.Harish, SC for Khadi Board. Departmental enquiry
was commenced against the petitioner under Ext.P2 prior to his retirement.
Petitioner retired on superannuation on 31.10.02 while he continued under
suspension. Ext.R1(a) report is stated to be the enquiry report submitted
on 25.2.04. Petitioner seriously disputes the correctness and even the
genuineness of Ext.R1(a). According to him, no enquiry was conducted by
Sri. Mathachen and therefore the enquiry report cannot be relied on. It is
not possible for this Court in proceedings under Article 226 of the
Constitution of India to decide whether a valid enquiry was actually held
and if so, whether Ext.R1(a) is the report thereon. But it has to be noticed
that a departmental enquiry will not come to a completion merely on the
completion of an enquiry. The report is to be forwarded to the delinquent
official and if the disciplinary authority accepts the report, the tentative
findings of the disciplinary authority on the charges levelled against the
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delinquent arrived at, should be communicated to him and the delinquent
must be given an opportunity to represent against the contents of the
report and the proposal on the part of the disciplinary authority to accept
the report. The delinquent’s representation will have to be considered and
if the disciplinary authority finds the same to be unsatisfactory, a notice will
have to be issued to the delinquent official proposing a suitable
punishment. In the circumstances where the delinquent official is retired
pending enquiry, purpose of the enquiry and other steps that could be
taken in that regard is to find out whether there is any liability or whether
the Corporation can be considered as having suffered any loss on account
of the actions of the delinquent. Treating the enquiry report as a material
it is open to the employer, if it is permissible in law and is within the time
frame stipulated under the Kerala Service Rules (which is admittedly
applicable to the organisation in question), to claim the amount from
retirement benefits that are due to the delinquent. But it is absolutely
essential that the proceedings must come to an end. The enquiry has not
come to an end merely because an enquiry report is submitted by the
enquiry authority. Further steps as indicated above definitely will have to
be taken.
6. It is not the case of the respondent that copy of Ext.R1(a) was
forwarded to the petitioner. No final order has been passed by the
competent authority, as to how the disciplinary proceedings has actually
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come to an end. In fact there is nothing on record to show that the enquiry
commenced as per Ext.P2 has actually come to an end so far.
7. With the above position of the background, the question as to
whether the retirement benefits that are due to the petitioner can now be
directed to be released to him. It is to be noticed that relying on Ext.R1(a)
report respondent contended that there is a liability to the tune of Rs.
7,30,893.80/- due from the petitioner. It is the contention of the petitioner
that in the aforementioned manner the sum has been determined after the
completion of the enquiry, as evident by Ext.R1(a). Apart from the fact
that the enquiry report has not been forwarded to the petitioner,
respondent has not been able to place before the Court any material to
show that the liability for the aforementioned sum has actually been
determined, after notice to the petitioner. Learned counsel for the
respondent refers to Ext.P6 memo of charges wherein a demand for an
amount of Rs. 7,621, 481.85/- was made. It is not the case of the
respondent that the liability was quantified prior to Ext.P6. In fact the
contentions seems to be otherwise. It is stated in Para.4 of the counter
affidavit as follows:
“It is submitted that the liability is quantified after completing the
enquiry as directed by this Hon’ble Court and demand notice
was served to the petitioner for realising the liability within the
stipulated time. Hence the contention of the petitioner that he is
entitled to get the protection as per the provisions of Note 3 rule
3 Part III Kerala Service Rules, will not stand in the eye of law.”
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8. Enquiry report Ext.R1(a) is stated to be submitted on 25.2.04.
This is subsequent to Ext.P6. Therefore, the demand made in Ext.P6
cannot be treated as consequential upon the determination of the liability of
the petitioner. It is to be treated as a show cause notice. Reference in
this regard could be made to that portion of Ext.P7 judgment, which has
already been extracted above. On repeatedly asking the learned counsel
for the respondent as to whether there is any other proceedings to show
that the liability of the petitioner has been finally determined after the date
of Ext.R1(a), which is stated to be 25.2.04, no such material could be
placed before me. In other words, it cannot be said that there is a final
determination of the liability to the tune of Rs.7,30,893.80/- hitherto after
due notice to the petitioner.
9. Learned counsel for the petitioner contends that in these
circumstances there is no justification on the part of the respondent in not
releasing and disbursing the DCRG due and admissible to the petitioner
and also full pension due to him instead of the provisional pension, as
granted under Ext.P8.
10. I am not inclined to issue such a direction straight away at this
stage. The respondent has a case that an amount of Rs.7,30,893.80/- is
due from the petitioner. Reference is made to a decision taken by the
Board of Directors of the respondent to proceed against the petitioner in
both criminal and civil actions. It is open to the respondent to do so and it
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clearly open to the petitioner to resist the same by taking up all such
contentions that are available to him including the contention that Ext.R1(a)
report is not admissible or acceptable. But it is necessary in this
circumstance that the disciplinary proceedings initiated under Ext.P1
comes to a termination without further delay and subject to the right
available to the respondent-Board to take such steps that are available to
them in accordance with law, for recovery of any amount that may be due
from the petitioner. It is also necessary that the petitioner be given the
DCRG and also full pension as is due to him in law without much delay. In
the result, the writ petition is disposed of with the following terms:
(1) The respondent shall finalise the disciplinary proceedings under
Ext.P1 in accordance with law, taking note of the observations made
above, against the petitioner, within three months from the date of receipt
of a copy of this judgment.
(2) Needless to say, copy of the enquiry report will have to be
forwarded to the petitioner and he must be given adequate opportunity to
object to the same. Petitioner will be entitled to take such objections as are
available to him in law with regard to the veracity of Ext.R1(a) and also the
contents of the same.
(3) It will be open to the respondent-Board, after completion of the
disciplinary proceedings within the time frame mentioned above, to take
steps as are available to them in accordance with law for recovery of any
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amounts that may be due from the petitioner. If such steps are taken it is
obviously open to the petitioner to resist such steps by taking all
contentions available to him in law including bar of Imitation on the right of
the respondent to recover any amount from the delinquent official from the
DCRG payable to such delinquent official.
(4) Subject to any order that the respondent may obtain from any
court in any proceedings that may be instituted against the petitioner either
on the basis of materials available after completion of the disciplinary
proceedings within the time frame mentioned above, or on the basis of the
determination of the liability, which is yet to take place, the entire DCRG
due and admissible to the petitioner shall be disbursed to him within a
period of four months from the date of receipt of a copy of this judgment.
Petitioner shall also be disbursed the full pension due to him after adjusting
the provisional pension that has already been paid to him, pursuant to
Ext.P8, within the same time frame.
The writ petition is disposed of as above.
V. GIRI, JUDGE
vps
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ANTONY DOMINIC, JUDGE
OP NO.16383/98
JUDGMENT
5TH SEPTEMBER, 2007
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