High Court of KeralaSingle JudgeWrit petition disposed of with directions: Ext....

Bexy Reji v. Kerala State Electricity Board and others

Case / Petition Number:WP(C) No. 3559 of 2015
Neutral Citation:/

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • Easwaran S.
Judgment Date
2024-07-17
Court Decision / Holding
Writ petition disposed of with directions: Ext.P2 shall be treated as a notice proposing recovery; petitioner may file an additional representation (Ext.P3); a hearing shall be conducted; final decision on the proposal to be taken within two months from receipt of this judgment.
Final Disposition
Writ petition disposed of with directions: Ext.P2 treated as notice; Ext.P3 allowed for objection; hearing to be conducted; final decision within two months.

Parties to the Case

Appellants / Petitioners

  • Bexy Reji

Respondents

  • Kerala State Electricity Board
  • The Chief Internal Auditor
  • The Executive Engineer, Kerala State Electricity Board

Legal Representation & Advocates

Counsels for Petitioners

  • • Sherry J. Thomas
  • • Thamana Bai

Counsels for Respondents

  • • K.S. Anil, Senior Counsel, KSEB

Case Synopsis & Summary

This writ petition by Bexy Reji, wife of the late Reji K.S., who was employed as a lineman with the Kerala State Electricity Board, challenges a recovery proposal from the Death-Cum-Retirement Gratuity (DCRG) payable on his death. After an initial disbursal in 2008, a further amount of Rs 95,391 was directed to be recovered from the DCRG/arrears already paid to the petitioner and her minor daughter. The petitioner contends that no notice was issued before the recovery and that she could not challenge the quantum; she relies on Baby Shobana v KSRTC to challenge the recovery. The Board’s counter-affidavit asserts that pay revision in August 2008 required recalculation of pension, family pension and gratuity; an application for pension revision (Ext. R1(c)) was submitted on 11.10.2013, accompanied by an undertaking that any excess sums paid on account of pensionary benefits, dearness relief or gratuity would be recovered from arrears. Relying on that undertaking, the respondents maintain the recovery is justified and cannot be interfered with under Article 226. The court notes that while an undertaking may bar equity, the petitioner should have been given hearing and an opportunity to object to the quantum. It directs that Ext.P2 be treated as a notice, with a two-week window to file Ext.P3 and a hearing, and a final decision within two months, disposing of the petition with directions.

Provisions of Law Cited

Article 226 of the Constitution of IndiaPayment of Gratuity Act

Legal Doctrines & Maxims

  • Equity cannot be claimed where an undertaking for recovery of excess amounts has been given.

Submissions & Arguments

Contentions of Appellants / Petitioners

The petitioner submits that the recovery was effected without notice, depriving her of the chance to contest the quantum. Ext.P2 was a proposed recovery without prior hearing, and Ext.P3 represents a late attempt at redress. She relies on Baby Shobana v KSRTC (2012) to urge that recovery without a hearing is unsustainable, particularly since some sums were already paid to a minor. The delay in seeking adjustment and the lack of notice undermine equity. The undertaking in Ext.R1(c) should not bar a hearing on quantum or the propriety of recovery, and the Board’s entitlement to revise pensionary benefits must be balanced against due process.

Contentions of Respondents

The respondents contend that pay revision in August 2008 necessitated recalculation of pension, family pension and gratuity. Ext.R1(c) contains an undertaking that any excess sums paid will be recovered from arrears, making the recovery justified. They argue that the writ cannot succeed in the face of a binding undertaking and that a hearing is still permissible; the proper remedy is to verify quantum and ensure recovery from arrears, with due regard to the undertaking. The Board asserts the need to correct overpayments and that natural justice requires an opportunity to be heard, which the Court can afford via process after treating Ext.P2 as a notice.

Cited Precedents (1)

Case NameCitationTreatmentExplanation
Baby Shobana v. Kerala State Road Transport Corporation (KSRTC)2012 (4) KHC 695Mentioned OnlyPetitioner relied on it; court did not apply it in its decision, and it is cited as a precedent but not binding in the outcome.

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Extracted Judgment Text

Exact text extracted from official judgment records.

# **`IN THE HIGH COURT OF KERALA AT ERNAKULAM`** ## **`PRESENT`** ## **`THE HONOURABLE MR. JUSTICE EASWARAN S.`** ``` WEDNESDAY, THE 17[TH] DAY OF JULY 2024 / 26TH ASHADHA, 1946 ``` ## **`WP(C) NO. 3559 OF 2015`** ## **`PETITIONER:`** ``` BEXY REJI W/O .LATE REJI K.S, AGED 38 YEARS, PUTHANTHARA PONNARIMANGALAM, MULAVUKKAD, ERNAKULAM 682504 ``` ``` BY ADVS. SRI.SHERRY J. THOMAS SMT.THAMANA BAI ``` ## **`RESPONDENTS:`** ``` 1KERALA STATE ELECTRICITY BOARD REPRESENTED BY ITS CHIEF ENGINEER (HRM) VYDHYUTHI BHAVAN, PATTAM, THIRUVANANTHAPURAM 695004 2THE CHIEF INTERNAL AUDITOR, VYDHYUTHI BHAVAN, PATTAMM, THIRUVANANTHAPURAM 695004 3THE EXECUTIVE ENGINEER, KERALA STATE ELECTRICITY BOARD, ELECTRICAL DIVISION, ERNAKULAM BY ADV SRI.K.S.ANIL, SC, KSEB ``` ``` THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON ``` ``` 17.07.2024, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: ``` ``` WP(C) NO. 3559 OF 2015 ``` ``` 2 ``` ## **JUDGMENT** ## **Dated this the 17[th] day of July, 2024** The petitioner is the wife of the deceased Reji.K.S, who was working as a lineman in the 1st respondent Board. On the death of the petitioner’s husband, a sum of Rs.1,29,372/- was sanctioned towards DCRG. An amount of Rs.64,286/- was allotted to the petitioner, being the wife of the deceased employee, and an amount of Rs.64,286/- was allotted to the minor daughter of the petitioner. The aforesaid payments were effected from 01.12.2008. Thereafter, the 3[rd] respondent issued a letter directing to deduct an amount of Rs.95,391/- from the DSRG amount, which is already paid. 2. According to the petitioner, the said recovery was without notice to her and hence, Ext.P3 request dated 25.09.2014 was given to the 1[st] respondent. The petitioner further relied on the judgment of this Court in ``` WP(C) NO. 3559 OF 2015 ``` ``` 3 ``` **Baby Shobana v. Kerala State Road Transport Corporation (KSRTC) [2012 (4) KHC 695]** . Thus, according to the petitioner, the recovery now sought for cannot be sustained. 3. A counter afÏdavit has been filed on behalf of the 2nd respondent, in which, it is specifically mentioned that consequent to the pay revision during the month of August 2008, the employees of the Board were entitled for revision of pay. Based on the revision of pay, the family pension and gratuity claim has to be recalculated. Accordingly, on 11.10.2013, the petitioner submitted an application for revision of pension. Ext.R1(c) is such application which is given by the petitioner. Along with the application, the petitioner has given an undertaking that the excess amount paid to her on account of Pensionary Benefits, Dearness Relief or payment made on account of Gratuity as per the payment of Gratuity Act, shall be recovered from the eligible arrears accrued as per this order. Therefore, according to the 2[nd] ``` WP(C) NO. 3559 OF 2015 ``` ``` 4 ``` respondent, in view of the undertaking, the recovery against the petitioner is justified and therefore the same cannot be interfered by this Court in exercise of its powers under Article 226 of the Constitution of India. 4. I have heard Adv. Sherry.J.Thomas, learned counsel appearing for the petitioner and K.S. Anil, the learned Standing Counsel appearing for the respondents. 5. The learned counsel for the petitioner submitted that before effecting recovery as evident from Ext.P2, no notice was issued to the petitioner. Atleast, if the petitioner was put on notice and Ext.P3 representation was considered, the petitioner could have pointed out the quantum of the amount that is liable to be recovered. Since no notice was issued to her, she is not in a position to dispute the quantum which was liable to be recovered. It is also pointed out that the recovery was effected after a period of five years and therefore there was no justification on the side of the respondents to do so. ``` WP(C) NO. 3559 OF 2015 ``` ``` 5 ``` 6. On the other hand, the learned Standing Counsel appearing for the respondents submitted that in view of Ext.R1(c) undertaking, the petitioner cannot be heard to contend that the amounts are not liable to be recovered. He further pointed out that admittedly, after the revision was effected there was excess of the amounts to be paid by the petitioner and hence, recovery was issued. 7. I have considered the rival submissions raised across the Bar. 8. The point which arises for consideration of this Court is as to whether the order of recovery has to be interfered with or not. It is now settled that, if the employee or the incumbents had given an undertaking agreeing for recovery of the excess amounts found due, then they cannot claim equity. If that be so, this Court does not find any illegality in the manner in which the proposed recovery is made. However, at the same time, the learned counsel for the petitioner is justified in ``` WP(C) NO. 3559 OF 2015 ``` ``` 6 ``` contending that in the absence of notice, the petitioner was prejudiced insofar as the petitioner could not object to the quantum of the amount that is liable to be recovered from the arrears of pension that were due to her husband. 9. The counsel for the petitioner further pointed out that certain amounts were given to the minor daughter also, for which no action has been taken by the respondent Board. Considering the totality of the circumstances, I find that an opportunity of hearing could be afforded to the petitioner to object to the proposed recovery which has now been made. While admitting the writ petition, this Court by order dated 04.02.2015 was granted a stay against the recovery from the petitioner. 10. In view of the above, this Court is of the considered view that though inference is to be declined against Ext.P2, the same shall be however considered as a notice and the 1[st] respondent is directed to consider Ext.P3 with notice to the petitioner and also hear the ``` WP(C) NO. 3559 OF 2015 ``` ``` 7 ``` petitioner in person and take a final decision on the proposal, i.e., contained in Ext.P2. Hence, the writ petition is disposed of with the following directions:- a) Ext.P2 shall be treated as a notice proposing the recovery. Since the petitioner has already filed Ext.P3, the petitioner is given the liberty to file an additional representation objecting to the quantum of recovery proposed to be made under Ext.P2. Such representation shall be filed within a period of two weeks from the date of receipt of a copy of this judgment. b) On receipt of such representation, the petitioner shall be intimated the date of hearing and on the said day after hearing the petitioner, the 1st respondent shall take appropriate decision in this regard. c) Needful shall be done, at any rate, within a ``` WP(C) NO. 3559 OF 2015 ``` ``` 8 ``` further period of two months from the date of receipt of a copy of this judgment. ``` Sd/- ``` **EASWARAN S. JUDGE** SPV ``` WP(C) NO. 3559 OF 2015 ``` ``` 9 ``` ## **`APPENDIX OF WP(C) 3559/2015`** ``` PETITIONERS’ EXHIBITS ``` ``` EXHIBIT P1: ``` ``` THE TRUE COPY OF THE LETTER DATED 6.12.2013 ISSUED FROM THE OFFICE OF THE 1ST RESPONDENT ``` ``` EXHIBIT P2: ``` ``` THE TRUE COPY OF THE LETTER DATED 18.3.2014 ISSUED TO THE PETITIONER ``` ``` EXHIBIT P3: ``` ``` THE TRUE COPY OF THE REQUEST DATED 25.9.2014 SUBMITTED BY THE PETITIONER TO THE 1ST RESPONDENT ``` ## **`RESPONDENTS’ EXHIBITS:`** ``` EXHIBIT R1(a):TRUE COPY OF THE B.O DATED 24.05.2011 ``` ``` EXHIBIT R1(b):TRUE COPY OF THE B.O DATED 05.06.2012 ``` ``` EXHIBIT R1(c): ``` ``` TRUE COPY OF THE APPLICATION DATED 11.10.2013 ``` ``` //TRUE COPY// ``` ``` PA TO JUDGE ```