High Court of KeralaSingle JudgeOriginal petition allowed; surrender leave sala...

G.K. Suchindan and others v. State of Kerala and Centre for Earth Science Studies

Case / Petition Number:OP No. 38911/2002 (G)

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • T. R. Ramachandran Nair
Judgment Date
2008-01-11
Court Decision / Holding
Exts.P3, P5 and P7 to recover surrender leave salary paid in 1999 are quashed. The court holds that the government order dated 2 August 1999 creating the entitlement to surrender leave is legal and the encashment from 1999 onward is valid. The surrender leave salary paid to the petitioners for the year 1999 is declared legal and valid. The original petition is allowed; there is no cost.
Final Disposition
Original petition allowed; surrender leave salary for 1999 declared legal; Exts.P3, P5, P7 quashed to the extent of the recovery for 1999; no costs.

Parties to the Case

Appellants / Petitioners

  • G.K.SUCHINDAN
  • DR.N.P.KURIAN
  • DR.T.N.PRAKASH
  • V.VASUDEVAN
  • G.BALASUBRAMANIAN
  • V.N.NEELAKANDAN
  • DR.T.RADHAKRISHNAN
  • DR.K.V.THOMAS
  • DR.G.R.RAVINDRAKUMAR
  • JOHN MATHAI
  • DR.S.SAMPATH
  • DR.NARAYANASWAMY
  • DR.H.N.SINGH
  • DR.C.P.RAJENDRAN
  • DR.KUSALA RAJENDRAN
  • DR.G.MOHAN KUMAR
  • V.SHARAVAN KUMAR
  • T.K.KRISHNACHANDRAN
  • DR.N.SUBASH
  • JOHN PAUL
  • DR.V.SASIKUMAR
  • DR.C.M.HARISH
  • DR.M.N.MURALIDHARAN NAIR
  • DR.K.K.RAMACHANDRAN
  • K.VIJAYAKUMAR
  • V.MURALIDHARAN
  • DR.M.SAMSUDDIN
  • DR.T.S.SHAHUL
  • C.K.SASIDHARAN
  • DR.P.P.OUSEPH
  • M.RAMESH KUMAR
  • A.VIJAYAKUMARAN NAIR
  • S.MOHANAN
  • M.AJITHKUMAR

Respondents

  • State of Kerala
  • Centre for Earth Science Studies

Legal Representation & Advocates

Counsels for Petitioners

  • • Sri. B. Ragunathan
  • • Sri. V. V. Mathew
  • • Sri. G. Gopalakrishnan Pillai

Counsels for Respondents

  • • Smt. T.B. Remani
  • • Sri U.K. Ramakrishnan
  • • Sri E.K. Madhavan
  • • Sri P.V. Lohithakshan
  • • Smt. P. Vijayamma

Case Synopsis & Summary

Petitioners, a group of scientists and technical staff employed under the Centre for Earth Science Studies (CESS), challenged government orders and a subsequent recovery directive seeking to reclaim surrender leave salary paid in 1999. The state’s Science, Technology and Environment Department had issued G.O. dated 2 August 1999, permitting encashment of surrender leave for 20 days in a calendar year, and the second respondent subsequently issued Ext.P2 circular implementing this benefit for its staff. Based on these competent orders, the petitioners were granted surrender leave salary for 1999 and 2000. Following an audit objection by the Accountant General, Kerala, the Government directed recovery of the 1999 surrender leave salary, as reflected in Ext.P3. Despite representation from the second respondent and later notices Exts.P4–P7, the Government insisted on recovering the amount from the petitioners’ Dearness Allowance arrears. The petitioners contended that their right to surrender leave salary arose from valid statutory orders and could not be rescinded on technical grounds or by audit objections. The Government contended the benefit was not effective for all due to lack of timely application; auditors flagged irregularities. The Kerala High Court held that the Government Order created a valid entitlement from 1999 onwards, and that audit objections cannot nullify competent orders. Exts.P3, P5 and P7 to the extent of recovery for 1999 were quashed; the payment for 1999 was legal and valid; petition allowed.

Provisions of Law Cited

G.O. dated 2.8.1999 enabling surrender of leave with salaryG.O.(P) No.82/99/STED dated 2.8.1999Ext.P2 circular dated 22.5.2000

Legal Doctrines & Maxims

  • Audit objections cannot sit in judgment over competent orders
  • The title to the payment of surrender leave salary cannot be disputed

Submissions & Arguments

Contentions of Appellants / Petitioners

The petitioners contend that the 2 August 1999 Government Order creates a lawful entitlement to encash surrender leave up to 20 days per year, effective from 1999 onward, and that Ext.P2 circular implemented the benefit for 1999 and 2000. They submit that surrender leave salary was paid in good faith on the basis of competent orders, and an audit objection cannot nullify such orders. Delays in issuing documents cannot Bar rights already conferred. The petitioners’ representations (Ext.P6) and the subsequent recovery orders (Ext.P7) are challenged as illegal. They urge the court to quash Exts.P3, P5 and P7 insofar as recovery for 1999 and to declare the 1999 surrender leave salary lawful and payable. Respondents: The state authorities maintain that though surrender leave was permissible, the application for surrender was not submitted in time, and the audit objection flags irregularities. Recovery from DA arrears was directed because of these irregularities, and the Government cannot be bound by retroactive relaxation absent timely compliance. Ext.P5 shows the Government’s stance against retroactive ratification.

Contentions of Respondents

The respondents argue that while the GO 2 Aug 1999 permitted surrender leave, the lack of timely application rendered the payment irregular. The audit objection by the Accountant General triggered the recovery direction, and Ext.P7 reflects action to recover from the petitioners. They assert that the Government’s position is to maintain financial discipline and prevent irregular encashment, and that the petitioners cannot claim retroactive validity of the encashment without following due procedures.

Cited Precedents (1)

Case NameCitationTreatmentExplanation
Usuvathunnisa v. Asst. Educational Officer1990 (2) KLT 530PositiveCited to support the proposition that audit objections cannot override competent orders

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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 T.R.RAMACHANDRAN NAIR FRIDAY, THE 11TH JANUARY 2008 / 21ST POUSHA 1929 OP.No. 38911 of 2002(G) ----------------------- PETITIONER: - ------------ 1. G.K.SUCHINDAN, SCIENTIST F, CENTRE FOR EARTH SCIENCE STUDIES, THIRUVANANTHAPURAM - 695 031. 2. DR.N.P.KURIAN, SCIENTIS E2, -DO- 3. DR.T.N.PRAKASH, SCIENTIST E2, -DO- 4. V.VASUDEVAN,SCIENTIST E1, -DO- 5. G.BALASUBRAMANIAN, SCIENTIST E2, -DO- 6. V.N.NEELAKANDAN, SCIENTIST E2, -DO- 7. DR.T.RADHAKRISHNAN, SCIENTIST F, -DO- 8. DR.K.V.THOMAS, SCIENTIST E2, -DO- 9. DR.G.R.RAVINDRAKUMAR, SCIENTISTE2, -DO- 10. JOHN MATHAI, SCIENTIST E2, -DO- 11. DR.S.SAMPATH, SCIENTIST F, -DO- 12. DR.NARAYANASWAMY, SCIENTIST E2, -DO- 13. DR.H.N.SINGH, SCIENTIST E1, -DO- 14. DR.C.P.RAJENDRAN, SCIENTIST E2, CENTRE FOR EARTH SCIENCE STUDIES, THIRUVANANTHAPURAM - 695 031. 15. DR.KUSALA RAJENDRAN, SCIENTIST E2, -DO- 16. DR.G.MOHAN KUMAR, SCIENTIST E2, -DO- 17. V.SHARAVAN KUMAR, SCIENTIST E1, -DO- 18. T.K.KRISHNACHANDRAN, TECHINICAL OFFICER, -DO- 19. DR.N.SUBASH, SCIENTIST E2, -DO- 20. JOHN PAUL, SCIENTIST C, -DO- 21. DR.V.SASIKUMAR, SCIENTIST E2, -DO- 22. DR.C.M.HARISH, SCIENTIST E2, -DO- 23. DR.M.N.MURALIDHARAN NAIR, SCIENTIST E2, -DO- 24. DR.K.K.RAMACHANDRAN, SCIENTIST E2, -DO- 25. K.VIJAYAKUMAR, SCIENTIST E1, -DO- 26. V.MURALIDHARAN, SCIENTIST E1, -DO- 27. DR.M.SAMSUDDIN, SCIENTIST E2, -DO- 28. DR.T.S.SHAHUL, SCIENTIST E2, -DO- 29. C.K.SASIDHARAN, SCIENTIST C, -DO- 30. DR.P.P.OUSEPH, SCIENTIST F, CENTRE FOR EARTH SCIENCE STUDIES, THIRUVANANTHAPURAM - 695 031. 31. M.RAMESH KUMAR, TECHNICAL OFFICER GRADE II, -DO- 32. A.VIJAYAKUMARAN NAIR, TECHNICAL OFFICER GRADE II, -DO- 33. S.MOHANAN, TECHNICAL OFFICER, GRADE II, -DO- 34. M.AJITHKUMAR, TECHNICAL OFFICER GRADE II, -DO- BY ADV. SRI.B.RAGUNATHAN SRI.V.V.MATHEW SRI.G.GOPALAKRISHNA PILLAI RESPONDENTS: ------------- 1. STATE OF KERALA, REPRESENTED BY CHAIRMAN, STATE COMMITTEE ON SCIENCE, TECHNOLOGY AND ENVIRONMENT AND EX-OFFICIO SECRETARY TO GOVT.,SCIENCE,TECHNOLOGY AND ENVIRONMENT DEPT. (STED), SASTHRA BHAVAN, PATTOM, THIRUVANANTHAPURAM - 695 004. 2. CENTRE FOR EARTH SCIENCE STUDIES, REPRESENTED BY DIRECTOR, CENTRE FOR EARTH SCIENCE STUDIES, THIRUVANANTHAPURAM - 695 031. R2 BY ADV. SRI.U.K.RAMAKRISHNAN SRI.E.K.MADHAVAN SRI.P.V.LOHITHAKSHAN SMT.P.VIJAYAMMA R1 BY SMT. T.B. REMANI, GOVERNMENT PLEADER THIS ORIGINAL PETITION HAVING BEEN FINALLY HEARD ON 11/01/2008, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: ## ORDER ON CMP NO.65511/2002 DISMISSED. 11/1/2008 SD/- T.R. RAMACHANDRAN NAIR, JUDGE. ## APPENDIX EXT.P1-TRUE COPY OF THE GO DATED 11.4.90 EXT.P2-TRUE COPY OF THE CIRCULAR DATED 22.5.2000 EXT.P3-TRUE COPY OF THE LETTER DATED 19.9.2001 EXT.P4-TRUE COPY OF LETTER DT.4.1-.2001 EXT.P5-TRUE COPY OF LETTER DT.28.5.02 EXT.P6-TRUE COPY OF REPRESENTATION DT.4.7.2002 EXT.P7-TRUE COPY OF NOTE DATED 12.12.2002 // TRUE COPY // P.S. TO JUDGE ## **T.R. Ramachandran Nair, J.** **- - - - - - - - - - - - - - - - - - - - - - - -** ## **O.P.NO.38911 of 2002** **- - - - -- - - - - - - - - - - - - - - - - - - - -** ## **Dated this the 11th day of January, 2008.** ## **JUDGMENT** The petitioners are aggrieved by the orders Exts.P3, P5 and P7 by which the benefit towards surrender leave salary granted to them, is sought to be recovered. The year in question is 1999. 2. Petitioners 1 to 30 are working as Scientists in the various grades and petitioners 31 to 34 are working as Technical Officers Grade II under the second respondent. The same is an autonomous institution established by the State of Kerala under the Science, Technology and Environmental Department. The second respondent is completely controlled by the State of Kerala and is funded by the State and the Central Governments. 3. Ext.P1 is the order by which the Government has provided the pay and other service conditions of the scientific and non-scientific staff in Research and Development Centres under Science, Technology and Environmental Department. By a later Govt. Order, viz. G.O.(P) No.82/99/STED dated 2.8.1999 the Scientific and Technical staff of the second respondent were ordered to be eligible for encashment of leave with salary (surrender leave salary) for 20 days in a calender year which was to OP 38911/2002 -2- be paid from 1999 onwards. Based on the said Govt. Order, Ext.P2 circular dated 22.5.2000 was issued by the second respondent. All the petitioners were beneficiaries of the said circular and surrender leave salary for 20 days each were drawn and disbursed to the petitioners for the years 1999 and 2000. Later, based on an audit objection raised by the Accountant General (Audit), Kerala, the Government directed recovery of the amounts paid by way of surrender leave salary to the petitioners for the year 1999. The said direction is evidenced by Ext.P3. By Ext.P4, the Director of the second respondent requested the Accountant General to drop the said audit objection. The Government was also addressed in the matter. But in Ext.P5, the Government informed the Secretary of the Scientists Association of the second respondent that the action of the Director, CESS in having paid the surrender leave salary on a retrospective basis cannot be ratified. Again, the employees submitted Ext.P6 representation not to effect the recovery and later by Ext.P7, the second respondent issued orders for effecting recovery from the DA arrears payable to the petitioners herein. The petitioners attack the said orders as illegal. By order dated 20.12.2002 in C.M.P. No.65511/2002, this court had granted interim stay of the recovery pursuant to Ext.P7. 3. Counter affidavits have been filed by respondents 1 and 2. In the OP 38911/2002 -3- counter affidavit filed by the Government, the stand taken is that even though as per Govt. Order dated 2.8.1999 surrender of leave has been permitted to all employees including Scientists, since the application for surrender of leave was not submitted prior to the period, the Accountant General pointed out it as an irregularity. It is on the basis of the said objection that the action of the second respondent was not ratified by the Government also. It is therefore contended in the counter affidavit that the Government directed the Director of CESS to initiate action to recover the amount from the DA arrears. The counter affidavit filed by the second respondent also shows that the Government Order dated 2.8.1999 permitted payment of surrender leave salary to the employees including Scientists, as applicable to the State Government employees. 4. This is a case where based on competent orders issued by respondents 1 and 2, the petitioners were given the benefit of surrender leave salary. That the Govt. Order dated 2.8.1999 enables the Scientific and Technical staff of the second respondent to be eligible for encashment of leave with salary for 20 days in a calender year, is not disputed. Evidently, this was ordered to be paid from 1999 onwards. The delay, if any, occurred is not on the part of the petitioners, but it appears that it was only because of the delay in issuing a circular, Ext.P2 by the second respondent, for which OP 38911/2002 -4- no mistake can be attributed to the petitioners. Their title to get surrender leave salary has been declared by G.O. dated 2.8.1999 and it cannot be taken away on any other ground. When the Government permitted the surrender leave salary to be payable from 1999 onwards, any administrative delay in issuing a circular for disbursing the same as per the Govt. Order, cannot militate against the rights of the petitioners. In fact, in Ext.P2 it is clearly stated that since the Government Order is effective from 2.8.1999, the encashment is permissible from the year 1999 onwards. 5. What is sought to be projected is an audit objection of the Accountant General. It is settled law that audit cannot sit in judgment over competent orders passed by the authorities concerned, herein being respondents 1 and 2. Such objections cannot have the effect of nullifying orders or proceedings taken by statutory authorities. (See **Usuvathunnisa v. Asst. Educational Officer** - 1990 (2) KLT 530). It is not a case where the petitioners deliberately delayed the submission of application for claiming the benefit and the respondents have no such case also. What is relevant is whether the payment was eligible as per G.O. dated 2.8.1999 and by Ext.P2. The approach otherwise made against the payment, can only be termed as too technical as petitioners cannot be blamed for any assumed OP 38911/2002 -5- irregularity. As the title to the payment of surrender leave salary cannot be disputed, and as they are clearly entitled for the said benefit, I am of the view that the audit objection does not survive and the payment effected to the petitioners, cannot be faulted also. Therefore, Exts.P3, P5 and P7 as far as the same direct recovery of surrender leave salary paid to the petitioners for the year 1999, are quashed. It is declared that the payment of surrender leave salary to the petitioners for the year 1999 is perfectly legal and valid. The original petition is allowed as above. No costs. **(T.R. Ramachandran Nair, Judge.)** **kav/** OP 38911/2002 -6- T.R. Ramachandran Nair, J. - - - - - - - - - - - - - - - - - - - - - - O.P. No.38911 of 2002-G - - - - - - - - - - - - - - - - - - - - - - ## JUDGMENT 11th January, 2008.