High Court of KeralaSingle JudgePetition disposed of with directions to disburs...

K. Reghunandiny v. State of Kerala & Others

Case / Petition Number:WP(C).No. 32697 of 2004(P)
Neutral Citation::null

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • K.K. Denesan
Judgment Date
2006-02-26
Court Decision / Holding
Writ petition disposed of with directions to disburse the D.C.R.G. due to the petitioner at the earliest, and in any case within three weeks from receipt of the judgment. Terminal surrender, leave salary, and the last month’s pay shall be disbursed without further delay, along with the D.C.R.G. The Provident Fund amount up to 7-1-2005 had been disbursed; if interest was not paid, it shall be calculated and paid. The petitioner may pursue civil remedies for interest on delayed payments if desired. The court clarified that relief was granted not on a finding that pecuniary loss was non-existent but on the failure to complete proceedings within three months.
Final Disposition
Petition disposed of with directions to disburse DCRG and other terminal benefits; payment to be made within three weeks; PF already disbursed up to 7-1-2005; interest to be paid if due; petition disposed with liberty to pursue civil remedy for interest.

Parties to the Case

Appellants / Petitioners

  • K. Reghunandiny, W/o. GOPIDAS, Sayoojyam, Santhi Nagar, Maraottichodu, Edappally P.O., Kochi-24, (Retd. Executive Engineer, K.S.H.B., Panampilly Nagar, Kochi-36)

Respondents

  • State of Kerala represented by the Chief Secretary, Secretariat, Thiruvananthapuram
  • The Kerala State Housing Board represented by its Secretary, Santhi Nagar, Thiruvananthapuram-1
  • Regional Engineer, Regional Office, The Kerala State Housing Board, Panampilly Nagar, Kochi-36

Legal Representation & Advocates

Counsels for Petitioners

  • • Sri. B. Radhakrishna Pillai
  • • Smt. S. Ambika Devi
  • • Smt. Baby Jose
  • • Sri. R. Jyothikrishnan

Counsels for Respondents

  • • Government Pleader Shri. Bijoy Chandran
  • • Sri. A. Jayasankar

Case Synopsis & Summary

Petitioner K. Reghunandiny, a retired Executive Engineer of the Kerala State Housing Board, approached this Court seeking a writ of mandamus to secure the pension and all pensionary benefits due from the Housing Board, including arrears from 1-11-2003, the commuted value of pension, DCRG, leave surrender, and the last month’s salary, with interest at 18% per annum. She retired on 31-10-2003 after 22 years of service; while pension and the commuted value appear to have been paid, the DCRG, leave salary and the last month’s pay remained unpaid. The petition also seeks the disbursement of the Provident Fund. In response, the Board and the Housing Board asserted that a pecuniary liability existed against the petitioner concerning works entrusted to her and that a Vigilance inquiry had indicated a liability, with final quantification not yet completed. The respondents argued that withholding or recovery of pensionary benefits must follow Rule 3, Part III, Kerala Service Rules, and that the three-year outer limit had not yet elapsed; however, the final quantification and notice to the employee were not completed. The court examined whether withholding could continue and ultimately held that, since final quantification had not occurred and the time limit had expired, the petitioner is entitled to DCRG and related payments; it disposed the petition with directions to release the amounts promptly, and to handle PF and interest where appropriate, while leaving open any civil remedies for interest disputes.

Provisions of Law Cited

Rule 3 of Part III of Kerala Service Rules

Submissions & Arguments

Contentions of Appellants / Petitioners

The petitioner seeks a writ directing the 2nd respondent to sanction and pay monthly pension and all pensionary benefits from 1-11-2003, including arrears, DCRG, and leave surrender with interest; she contends that DCRG cannot be withheld under Rule 3, Part III of K.S.R. as the outer three-year limit has lapsed and final quantification is not completed; seeks disbursement of PF and last-month pay, with interest where due, and urges immediate relief for pensionary dues.

Contentions of Respondents

Respondents maintain there is a pecuniary liability against the petitioner arising from works in the Ernakulam Division; Vigilance inquiry recommended departmental action and final quantification is pending; withholding DCRG is permissible until liability is fixed; delay in payment is due to ongoing inquiries and the need to determine the extent of loss; they argue relief cannot be granted for reasons of due process and emphasize that civil action may be necessary for interest on delayed payments.

Cited Precedents (1)

Case NameCitationTreatmentExplanation
V. Vijayakumaran Nair v. State Bank of Travancore & Another2005 (1) KLJ 547Mentioned OnlyCited to indicate that matters relating to delay and interest may be adjudicated in civil court; not a binding ratio applied in the writ petition.

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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 K.K.DENESAN MONDAY, THE 26TH FEBRUARY 2007 / 7TH PHALGUNA 1928 WP(C).No. 32697 of 2004(P) -------------------------- PETITIONER: ------------ K. REGHUNANDINY, W/O. GOPIDAS, SAYOOJYAM, SANTHI NAGAR, MARAOTTICHODU, EDAPPALLY P.O., KOCHI-24, (RETD.EXECUTIVE ENGINEER, K.S.H.B., PANAMPILLY NAGAR, KOCHI-36). BY ADV. SRI.B.RADHAKRISHNA PILLAI SMT.S.AMBIKA DEVI SMT.BABY JOSE SRI.R.JYOTHIKRISHNAN RESPONDENTS: ------------- 1. STATE OF KERALA, REPRESENTED BY THE CHIEF SECRETARY, SECRETARIAT, THIRUVANANTHAPURAM. 2. THE KERALA STATE HOUSING BOARD REPRESENTED BY ITS SECRETARY, SANTHI NAGAR, THIRUVANANTHAPURAM-1. 3. REGIONAL ENGINEER, REGIONAL OFFICE, THE KERALA STATE HOUSING BOARD, PANAMPILLY NAGAR, KOCHI-36. R1 BY GOVERNMENT PLEADER SHRI. BIJOY CHANDRAN R2 & 3 SRI.A.JAYASANKAR, SC KSHB, TVM THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 26/02/2007, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: ## **K.K. DENESAN, J.** **= = = = = = = = = = = = = = = W.P.(C) No. 32697 OF 2004 P** **= = = = = = = = = = = = = = =** **Dated this the 26[th] February, 2006** ## **J U D G M E N T** The petitioner retired from the service of the 2[nd] respondent-Kerala State Housing Board while working as the Executive Engineer. She has approached this Court for the grant of the following reliefs: “i) To issue a writ of mandamus, any other appropriate writ, order or direction, directing the 2[nd] respondent to sanction and pay monthly pension and all other pensionary benefits due to the petitioner including arrears of pension w.e.f. 1-11-2003, commuted value of pension, DCRG, and leave surrender and also the last month's pay along with interest at 18% per annum wef 1-11-2003. ii) To issue a writ of mandamus any other appropriate writ, order or direction, directing the 2[nd] respondent to disburse the Provident Fund due to the petitioner with interest at 18% from the date of retirement (ie) 31-10-2003) to the date of payment forthwith. iii) To issue any other writ, order or direction which this Hon'ble Court deems fit in the nature and circumstances of the case.” 2. The date of retirement of the petitioner is 31-10-2003. She had to her credit 22 years of service as on 31-10-2003. Though pension and commuted value of pension, has been paid to her, D.C.R.G., surrender WPC No. 32697/2004 -2- leave salary and last month's pay have not been disbursed. This is the subsisting grievance of the petitioner as on today. 3. The respondents have filed counter affidavit. It is stated in the counter affidavit that certain liability was outstanding against the petitioner relating to the works entrusted to her in the Ernakulam Division. The department was probing into the cause for the pecuniary loss sustained by the Housing Board which on a preliminary investigation found to come to a tune of Rs. 1,13,639/-. It is stated in paragraph 6 of the counter affidavit that the Vigilance and AntiCorruption Bureau has conducted an enquiry in connection with the pilferage of cement from Government Cement Depot, Panampilly Nagar, Kochi and recommended to initiate Departmental action against the petitioner. According to the respondents, the petitioner's share of liability was fixed by the Vigilance Wing of the Board. But the counter affidavit would categorically show that final quantification of the liability could not be made for want of enquiry into all aspects of the WPC No. 32697/2004 -3- matter and that even today quantification proceedings have not been finalised. It does not appear that the petitioner has been issued with any notice proposing to fix the final liability on her. That fact is also evident from the counter affidavit itself. Of course, the counter affidavit was sworn to on 4-1-2005. The petitioner has filed a reply affidavit controverting the allegations made in the counter affidavit against her. Though one more year has elapsed, it appears that the liability has not so far been quantified. 4. The only question for consideration as far as the claim for disbursement of D.C.R.G. is concerned is whether the respondents have got the legal authority to withhold D.C.R.G. from the terminal benefits due to the petitioner who retired as early as on 31-10-2003. The power to withhold or recover amount from the pensionary benefits due to a retired employee is traceable to Rule 3 of Part III of Kerala Service Rules. The inbuilt safeguard against arbitrary action against the retired employees in the matter of withholding or recovering pensionary benefits due to such employees is one WPC No. 32697/2004 -4- relating to the fixation of a time limit for completing action in respect of such withholding or recovering and due notice to the employee or pensioner concerned before final quantification of the liability. The outer time limit is three years. That period is already over. Therefore, no further action can be taken under the provisions of Rule 3, Part III of K.S.Rs. to withhold or recover the D.C.R.G. due to the petitioner. The final quantification is yet to take place. The petitioner is entitled to succeed on the above ground. 5. I am of the view that no more enquiry is necessary in this matter to grant reliefs to the petitioner as far as the direction sought for, to disburse DCRG is concerned. I therefore direct that the respondents shall disburse the D.C.R.G. due to the petitioner at the earliest. At any rate, the amount shall be paid within three weeks from the date of receipt of a copy of the judgment. 6. The remaining claims include (i) the pay and allowances for the last month, and terminal surrender WPC No. 32697/2004 -5- leave salary. Counsel for the respondents rightly submits that those amounts will be paid without further delay. Hence, there shall be an order that amounts on account of terminal surrender leave salary and the last month's pay shall be disbursed without further delay, at any rate, along with the D.C.R.G. due to be paid as directed above. 7. The next contention relates to the non-payment of Provident Fund. Though the non-payment of P.F. was a grievance highlighted in the writ petition, it is submitted by counsel on either side that during the pendency of this writ petition the P.F. amount upto 7-1-2005 has been disbursed to the petitioner. Therefore, there was delay on the part of the respondents in disbursing the P.F. amount. It is not known whether at the time of final payment, interest upto 7-1-2005 was calculated. If the amount was paid without interest, for whatever period interest has not been calculated, the same shall be done and the amount due to the petitioner, if any , towards interest paid to her immediately. Ordered accordingly. WPC No. 32697/2004 -6- 8. The last contention relates to interest for the delayed payment of terminal benefits, namely, D.C.R.G., commuted value of pension as also regular pension. According to the petitioner, there was lethargy and culpable delay on the part of the respondents. This contention is reiterated in the reply affidavit also. But, counsel for the respondents, based on the pleadings in the counter affidavit would submit that the delay was on account of lapses committed by the petitioner in the due discharge of her official duty and therefore an enquiry became necessary to ascertain the correct position. It is contended that the delay was not culpable. Counsel further submits that this Court has granted reliefs to the petitioner not on the basis of any finding that the Housing Board did not sustain pecuniary loss by the alleged lapses committed by the petitioner, but only on the ground of noncompletion of the proceedings against her within 3 months. 9. I think, these are matters to be adjudicated by a civil court in case the petitioner files a suit WPC No. 32697/2004 -7- claiming interest for the delayed payment of D.C.R.G. etc. (See _**V. Vijayakumaran Nair**_ v. _**State Bank of Travancore & Another**_ {2005 (1) KLJ 547}. Without prejudice to that right of the petitioner, this writ petition is disposed of, with the above directions. ## **K.K. DENESAN JUDGE** jan/