High Court of KeralaSingle JudgeWrit petition disposed of; pension benefits ord...

Francis.A v. Kerala State Electricity Board Ltd.

Case / Petition Number:WP(C).No. 23168 of 2014 (U)
Neutral Citation:/

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • Dama Seshadri Naidu
Judgment Date
2014-10-07
Court Decision / Holding
The court disposed of the writ petition at admission, directing the authorities to duly process the petitioner’s application and settle all terminal benefits expeditiously, and in any case within two months from the date of receipt of a copy of the judgment.
Final Disposition
Writ petition disposed of; pension benefits ordered to be settled within two months.

Parties to the Case

Appellants / Petitioners

  • Francis.A

Respondents

  • KERALA STATE ELECTRICITY BOARD LTD., represented by its Secretary, Vaidyuthi Bhavanam, Pattom, Thiruvananthapuram, PIN - 695 004
  • The Chief Engineer (H.R.M), KERALA STATE ELECTRICITY BOARD LTD., Vaidyuthi Bhavanam, Pattom, Thiruvananthapuram, PIN - 695 004
  • The Deputy Chief Engineer, KERALA STATE ELECTRICITY BOARD LTD., Vaidyuthi Bhavanam, Perumbavoor -683 542
  • The Assistant Executive Engineer, KERALA STATE ELECTRICITY BOARD LTD., Regional Stores Division, Aluva- 683 101

Legal Representation & Advocates

Counsels for Petitioners

  • • SRI.ELVIN PETER P.J.
  • • SRI.T.G.SUNIL (PRANAVAM)
  • • SRI.K.R.GANESH

Counsels for Respondents

  • • SRI.K.S.ANIL, SC, KSEB

Case Synopsis & Summary

Francis A., Regional Audit Officer, retired from service on 31.07.2014, but his terminal benefits have not been settled despite repeated representations. The petitioner alleges that the crucial Non-Liability Certificate for the period 07.03.2005 to 31.10.2008 was not issued by the concerned department, which impeded pension papers. He further contends that no disciplinary proceedings, of any nature, have been pending against him or against the then Executive Engineer who raised and allegedly paid an unauthorised bill regarding UG cable material under an additional purchase order dated 05.02.2007. He argues he did not participate in the bill’s creation or in the payment, and any lapse originated with the officer who has since become a Director of the Board. The respondents concede the absence of pending disciplinary proceedings but contend that the Non-Liability Certificate is still outstanding and that the petitioner, as Senior Superintendent, should have scrutinised the bills and prevented any unauthorised payment. The court notes there is no active disciplinary action and emphasizes that retirement benefits are protected rights. Citing Kesavan’s case, the court reiterates that retiral benefits like gratuity are property under Article 300A and cannot be deprived without statutory prescription. It holds that Rule 3 Part III KSR bars disciplinary proceedings for events over four years old and that no justification exists to withhold the petitioner’s terminal benefits. The petition is disposed, directing payment within two months.

Provisions of Law Cited

Rule 3 Part III Kerala Service Rules (KSR) sub-clause (2)Article 300A, Constitution of India

Legal Doctrines & Maxims

  • Retiral benefits like gratuity are property under Article 300A of the Constitution; cannot be deprived without statutory prescription.
  • No departmental proceedings shall be initiated for events more than four years (Rule 3 Part III KSR, sub-clause (2)).

Submissions & Arguments

Contentions of Appellants / Petitioners

The petitioner’s counsel contends that after repeated representations, there is no justification for withholding the petitioner’s pension benefits. He submits that the Non-Liability Certificate for the period 07.03.2005 to 31.10.2008 was not issued, a precondition to processing pension. He asserts no disciplinary proceedings have been initiated against him or the then Executive Engineer who approved the disputed bill. He points out that the Executive Engineer, now a Director, raised questions about the process but that the petitioner did not participate in raising or sanctioning the payment. He emphasizes that as Senior Superintendent his role was verification, not sanctioning. He relies on Rule 3 Part III KSR to stress the four-year bar on initiating departmental proceedings and cites Kesavan’s case to argue that retiral benefits are protected rights under Article 300A and cannot be deprived without statutory prescription.

Contentions of Respondents

The respondents submit that although there are no active disciplinary proceedings, the missing Non-Liability Certificate remains unproduced and the petitioner, as Senior Superintendent, should have scrutinised the bills to prevent unauthorised payments. They note the issue dates to 2005–2008 and the correspondence ceased in 2008; thus pension cannot be processed without the certificate. They rely on the absence of formal action against the petitioner and contend the four-year rule limits action, arguing that pension disbursement should await proper certification and accountability rather than be compelled by court dictation.

Cited Precedents (1)

Case NameCitationTreatmentExplanation
Kerala State Electricity Board v. Kesavan2014 (3) KLT SN 57 (C.No.73)PositiveKesavan’s case is cited to support the principle that retiral benefits are property and cannot be withheld without statutory prescription; the court follows and reinforces this principle.

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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 DAMA SESHADRI NAIDU** **TUESDAY, THE 7TH DAY OF OCTOBER 2014/15TH ASWINA, 1936** ## **WP(C).No. 23168 of 2014 (U)** **----------------------------** ## **PETITIONER :** **-----------------------** **FRANCIS.A, PUTHENVEETTIL, SHANTHI NAGAR, THAIKATTUKARA(P.O),ALUVA- 683 106** **BY ADVS.SRI.ELVIN PETER P.J. SRI.T.G.SUNIL (PRANAVAM) SRI.K.R.GANESH** **RESPONDENT(S):** **----------------------------** **1. THE KERALA STATE ELECTRICITY BOARD LTD., REPRESENTED BY ITS SECRETARY, VAIDYUTHI BHAVANAM, PATTOM, THIRUVANANTHAPURAM, PIN -695 004** **2. THE CHIEF ENGINEER (H.R.M), KERALA STATE ELECTRICITY BOARD LTD., VAIDYUTHI BHAVANAM, PATTOM, THIRUVANANTHAPURAM, PIN -695 004** **3. THE DEPUTY CHIEF ENGINEER, KERALA STATE ELECTRICITY BOARD LTD., VAIDYUTHI BHAVANAM, PERUMBAVOOR -683 542.** **4. THE ASSISTANT EXECUTIVE ENGINEER, KERALA STATE ELECTRICITY BOARD LTD., REGIONAL STORES DIVISION, ALUVA- 683 101.** **R1 TO R4 BY ADV. SRI.K.S.ANIL, SC, KSEB** **THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 07-10-2014, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:** **sts** ## **WP(C).No. 23168 of 2014 (U)** ## **----------------------------------------** ## **APPENDIX** ## **PETITIONER(S)' EXHIBITS -------------------------------------** - **EXHIBIT P1 COPY OF THE COMMUNICATION DATED 5/1/2010 ISSUED BY THE DY.CHIEF ENGINEER,ELECTRICAL CIRCLE, VAKATARA TO THE EXECUTIVE ENGINEER, REGIONAL STORES, KSEB, ALUVA** **EXHIBIT P2 COPY OF THE COMMUNICATION DATED 26/11/2010 ISSUED BY THE DEPUTY CHIEF ENGINEER,ELECTRICAL CIRCLE, IRINJALAKUDA TO THE EXECUTIVE ENGINEER, REGIONAL STORES, KSEB, ALUVA** **EXHIBIT P3 COPY OF THE LETTER DATED 8/11/2011 ISSUED BY THE CHIEF ENGINEER(DISTRIBUTION CIRCLE),ERNAKULAM, TO THE EXECUTIVE ENGINEER, REGIONAL STORES, KSEB , ALUVA** - **EXHIBIT P4 COPY OF THE REPRESENTATION DATED 22/11/13 SUBMITTED BY THE PETITIONER BEFORE THE 4TH RESPONDENT** - **EXHIBIT P5 COPY OF THE REPRESENTATION DATED 3/12/2013 SUBMITTED BY THE PETITIONER BEFORE THE CHIEF ENGINEER(DISTRIBUTION CENTRAL) ERNAKULAM.** - **EXHIBIT P6 COPY OF THE REPRESENTATION DATED 4/12/13 FILED BY THE PETITINER BEFORE THE DY.CHIEF ENGINEER, ELECTRICAL CIRCLE, PERUMBAVOOR** - **EXHIBIT P7 COPY OF THE REPRESENTATION DATED 9/1/14 SUBMITTED BY THE PETITIONER BEFORE THE CHIEF ENGINEER(SCM), KSEB,THIRUVANANTHAPURAM.** - **EXHIBIT P8 COPY OF THE REPRESENTATION DATED 23/8/14 SUBMITTED BY THE PETITIONER BEFORE THE CHIEF INTERNAL AUDITOR IN THE OFFICE OF THE IST RESPONDENT** - **EXHIBIT P9 COPY OF THE REPRESENTATION DATED 22/8/14 SUBMITTED BY THE PETITIONER BEFORE THE DEPUTY CHIEF ENGINEER, KSEB, PERUMBAVOOR.** ## **RESPONDENT(S)' EXHIBITS:** **NIL** **/TRUE COPY/** ## **P.S.TO.JUDGE** **sts** Dama Seshadri Naidu, J. --------------------------------------------- ## W.P.(C)No.23168 of 2014 U ---------------------------------------------- Dated this the 7[th] day of October, 2014 ## **JUDGMENT** Heard the learned counsel for the petitioner and the learned Standing Counsel for the respondents, apart from perusing the record. Since the issue lies in a narrow compass, this Court proposes to dispose of the writ petition at the admission stage itself. 2. Briefly stated, the petitioner having worked as Regional Audit Officer, on attaining the age of superannuation retired from service on 31.07.2014. Despite his numerous representations, so far, his retirement benefits have not been settled and paid by the authorities. Under those circumstances he has approached this Court. 3. The learned counsel for the petitioner has strenuously contended that after repeated representations, WPC 23168/14 2 both oral and written, when the petitioner approached the authorities enquiring why his terminal benefits had not been settled so far, he was informed by the authorities that the Non Liability Certificate for the period from 07.03.2005 to 31.10.2008 had not been issued by the department concerned to process his pension papers further. On his further enquiry, the petitioner has come to know that no disciplinary proceedings of whatever nature has been pending. The alleged cause for not issuing the Non Liability Certificate is based on an issue concerning purchase of certain UG cable material from a company at Chennai against the additional purchase order dated 05.02.2007, made by the then Executive Engineer of the Board. 4. The learned counsel has contended that at the relevant time, i.e., from the years 2005 to 2008, the petitioner had been working as Senior Superintendent with the responsibility of only verifying the bills. According to the learned counsel, the very Executive Engineer, who raised WPC 23168/14 3 the bill and got payment on the strength of the said bill, allegedly without prior sanction, has later been duly promoted and is said to be presently working as a Director in the respondent Board. 5. The learned counsel has also strenuously contended that the petitioner had no role at all in raising the bill and the subsequent payment; even otherwise, apart from some initial correspondence on the issue, no proceedings, either judicial or departmental, have been initiated against the petitioner or even against the then Executive Engineer, presently the Director. The learned counsel has also drawn the attention of this Court to Rule 3 Part III Kerala Service Rules (KSR) to emphasise the time limit that has been cast on the authority to initiate disciplinary proceedings against any alleged misconduct on the part of an employee. The learned counsel has placed reliance on a judgment of a learned Division Bench in **Kerala State Electricity Board v. Kesavan** (2014 (3) KLT WPC 23168/14 4 SN 57 (C.No.73)). Summing up his submissions, the learned counsel has submitted that even going by the statement filed by the respondent Board, it is difficult to discern any justification for the denial of pensionary benefits to the petitioner, despite his repeated representations to get what is constitutionally and statutorily a protected right. Accordingly, he urged this Court to allow the writ petition. 6. Per contra, the learned Standing Counsel, in tune with the pleadings in the statement filed by the third respondent, has submitted that though there is not much dispute that no proceedings, either judicial or disciplinary, are pending against the petitioner, the fact, however, remains that so far the Non Liability Certificate for the period from 07.03.2005 to 31.10.2008 has not been produced. With a particular reference to paragraph 8 of the statement, the learned Standing Counsel has further submitted that the petitioner, then being the Senior Superintendent, ought to have properly scrutinised the bills WPC 23168/14 5 raised by the then Executive Engineer and could have taken immediate steps in that regard. In any event, the issue concerning raising of the bill, which has been adverted to in the submission of the learned counsel for the petitioner, has not been closed, and as such, it is difficult to accede to the request of the petitioner to pay his terminal benefits before putting an end to the controversy of unauthorised payment based on the bills referred to above. 7. To begin with, it can be very clearly seen recorded in the fourth paragraph of the statement filed by the third respondent that no proceedings, either judicial or disciplinary, are seen initiated against the petitioner as per his service records. There is no gainsaying the fact that the respondents, in the statement, have pleaded about a particular departmental transaction between 2005 and 2008 concerning purchase of UG cable from a company at Chennai against the additional purchase order dated 05.02.2007, made by the then Executive Engineer of the WPC 23168/14 6 Board. The entire issue revolves around the aspect of effecting payment without getting sanction regarding refixation of price of the said material. Be that as it may, it is not in dispute that the petitioner does not have any direct role either in raising the bill or in ensuring payment thereof without getting sanction regarding re-fixation of price. The then Executive Engineer is said to have already been promoted and is presently working as a Director in the Board. It is discernible from the record that there was some initial correspondence departmentally, but it ended way back in 2008. 8. Given the importance of the issue that a retired employee has been struggling to get his terminal benefits, the right to which he is entitled, as has been reiterated by this Court as well as by the Honourable Supreme Court, the inaction on the part of the respondent Board in settling the terminal dues of the petitioner cannot easily be brushed aside. Even statutorily Rule 3 Part III KSR, especially sub- WPC 23168/14 7 clause (2) thereof, mandates that no departmental proceedings shall be initiated in respect of an event which took place more than four years. 9. In the first place, the respondents themselves have placed on record that till this day no proceedings have been initiated. Even the issue, which is said to have come in the way of the petitioner not getting his Non Liability Certificate, happened in the year 2008. The departmental correspondence on the issue ceased by 04.09.2008. In terms of Rule 3 Part III KSR, at this juncture, the respondent Board cannot initiate any disciplinary proceedings against an employee, assuming that there was any lapse on his part while he had been discharging the functions of a Senior Superintendent way back from 2005 to 2008. A learned Division Bench of this Court in **Kesavan's case** (supra) has also categorically held that the retiral benefit like gratuity, being a property as enshrined in Article 300A of the Constitution, cannot be deprived or WPC 23168/14 8 withheld without any statutory prescription. 10. In the facts and circumstances, this Court is of the considered opinion that there is no justification of whatever nature for the respondent to tarry on the issue of settling the terminal benefits of the petitioner. Accordingly, this Court directs the authorities to duly process the application of the petitioner and settle all his terminal benefits as expeditiously as possible, at any rate, within a period of two months from the date of receipt of a copy of this judgment. With the above direction, the writ petition is disposed of. No order as to costs. Dama Seshadri Naidu, Judge tkv