Allowed

Ramesh Singh Chauhan v. U.P. State Employees Welfare Corporation Ltd. Lucknow Thru. Chairman and Another

Allahabad HC29 May 2023/985/2022

Case brief

AI extract

What is this about?

The Allahabad High Court held that deduction of retirement dues including gratuity and leave encashment without statutory authority was arbitrary and illegal, directing return of the adjusted amount with interest and quashing impugned orders.

What did the court decide?

Return of deducted amount Rs.21,52,106.47 plus admitted dues Rs.3,09,440.53 with 7% interest within three months; quashing of impugned orders.

Ramesh Singh Chauhan Vs U.P. State… — Pension and Retirement Benefits | Allahabad HC (2023)

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Neutral Citation No. - 2023:AHC-LKO:38420

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Court No. - 17

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Case :- WRIT - A No. - 985 of 2022

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Petitioner :- Ramesh Singh Chauhan Respondent :- U.P. State Employees Welfare Corporation Ltd. Lucknow Thru. Chairman And Another

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Counsel for Petitioner :- Devashish Bhatt,Mukesh Kumar Counsel for Respondent :- Mahendra Pratap Singh

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Hon'ble Pankaj Bhatia,J.

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Heard Shri Devashish Bhatt, learned counsel for the petitioner.

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Despite the repeated adjournments taken by the respondents, no counter affidavit has been filed, as such the matter is being decided finally.

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The petition has been filed by the petitioner alleging that the petitioner had retired on 31.01.2020 after attaining the age of superannuation and from the retirement dues which include gratuity and leave encashment, huge amount has been deducted.

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Perusal of the order dated 04.10.2021, reveals that the amounts have been deducted from the dues payable to the petitioner without there being any order passed against the petitioner. It is well settled that the adjustment from the gratuity and the leave encashment can be done only when the same is authorized under law through statutory provisions of Rules as there is no provision permitting the respondents to adjust any amount, clearly adjustments as made and reflected in the impugned order are wholly arbitrary and illegal.

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The view is fortified by the decision of the Supreme Court in the case of Bhagirathi Jena versus Board of Directors, O.S.F.C. and others, reported in (1999) 3 SCC 666 . In view thereof, the

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adjustment of the amounts from the petitioner’s dues is held to be arbitrary and illegal.

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The respondents are directed to return the amount adjusted and as reflected in the order dated 04.10.2021 amounting to Rs.21,52,106.47/- along with interest at the rate of 7 % per annum from the date of retirement till payment of its realization within a period of three months from today.

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In addition thereto, the amounts admitted by the respondents, amounting to Rs.3,09,440.53/- shall also be payable to the petitioner along with interest at the rate of 7 % per annum as directed above.

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The petition is allowed in terms of the said order and impugned orders dated 04.10.2021, 07.09.2021, 26.08.2021 and 22.10.2020 are quashed.

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Order Date :- 29.5.2023 KR

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Digitally signed by :- RABINDRA KUMAR High Court of Judicature at Allahabad, Lucknow Bench

Ramesh Singh Chauhan v. U.P. State Employees Welfare Corporation Ltd. Lucknow Thru. Chairman and Another

Case brief

What is this about?

What did the court decide?

Ramesh Singh Chauhan v. U.P. State Employees Welfare Corporation Ltd. Lucknow Thru. Chairman and Another

Case brief

What is this about?

What did the court decide?

What the court decided

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