Allowed

Pankajakshan v. the Managing Director

Kerala HC25 Jul 2018WA/596/2016

Case brief

AI extract

What is this about?

This appeal allowed pensionary benefits to a retired employee, holding that a unilateral resolution fixing liability post-retirement could not withhold pension. The court directed disbursement within one month, rejecting the bank's reliance on bankruptcy proceedings to delay pension payment.

What did the court decide?

Direction to respondent to disburse pensionary and allied benefits due to the appellant within one month.

Pankajakshan Vs the Managing Director — Cooperative Societies | Kerala HC (2018)

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IN THE HIGH COURT OF KERALA AT ERNAKULAM

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PRESENT:

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THE HONOURABLE MR.JUSTICE V.CHITAMBARESH &

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THE HONOURABLE MR. JUSTICE SATHISH NINAN

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WEDNESDAY, THE 25TH DAY OF JULY 2018 / 3RD SRAVANA, 1940

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WA.No. 596 of 2016 IN WPC. 11662/2011

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AGAINST THE JUDGMENT IN WP(C) 11662/2011 of HIGH COURT OF KERALA DT.18.1.16

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APPELLANT/PETITIONER:

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PANKAJAKSHAN, AGED 68 YEARS, S/O.IMBICHIKUTTAN, THAIKKOTTATHIL HOUSE, KADALUNDI (PO), KOZHIKODE DISTRICT.

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BY ADVS.SRI.P.V.KUNHIKRISHNAN

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SRI.G.ANEESH SRI.P.V.ANOOP

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RESPONDENT/RESPONDENT:

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THE MANAGING DIRECTOR, KERALA STATE CO-OPERATIVE BANK LIMITED, CO BANK TOWERS, PALAYAM, THIRUVAANANTHAPURAM- 695 033.

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R1 BY ADV. SRI.GEORGE POONTHOTTAM, SC, KERALA STATE CO.OP BANK LTD. R1 BY ADV. SRI.GILBERT GEORGE CORREYA, SC, KERALA STATE CO-OPERATIVE BANK

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THIS WRIT APPEAL HAVING BEEN FINALLY HEARD ON 19-07-2018, THE COURT ON 25-07-2018 , DELIVERED THE FOLLOWING

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V. CHITAMBARESH & SATHISH NINAN, JJ. = = = = = = = = = = = = = = = = = = W. A. No.596 of 2016

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= = = = = = = = = = = = = = = = = = Dated this the 25^th day of July, 2018

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J U D G M E N T

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Sathish Ninan, J.

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Aggrieved by the non-disbursal of pensionary and allied benefits, the appellant is before this Court. He was an employee under the respondent Bank. He was suspended from service pending disciplinary enquiry on the allegation of grant of loans without proper security. Pending enquiry, the appellant retired from service on 30.06.2006. In the disciplinary enquiry, the appellant was held guilty and imposed with punishment of withholding of promotion and of one annual increment with cumulative effect. The resolution of the executive committee dated 10.09.2009 is made available to us and it reads as under:

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“Considered the memorandum on the subject and noted the contents. Resolved to accept the

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W. A. No.596 of 2016

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recommendations made by the Disciplinary Committee in the matter in respect of the delinquent official, Shri P. Pankajakshan, Senior Manager (Retd.). Also resolved to impose the punishment of withholding of promotion and one increment with cumulative effect, which were otherwise due to him prior to his retirement on 30.06.2006.”

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The appellant suffered the punishment. However, the pensionary benefits were not disbursed to him, compelling him to approach this Court in the writ petition. In the counter affidavit, it is stated that the executive committee of the Bank met on 19.05.2010 and decided to fix financial liability of `237.45 lakhs on the appellant and to file arbitration case for recovering the amount. The writ petition was dismissed by the learned single Judge for the reason that the respondent had fixed financial liability on the appellant as above.

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It is to be noticed that, as on the date of passing of the resolution fixing liability, that is on 19.05.2010, the appellant was no more in

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W. A. No.596 of 2016

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service. Moreover, the fixing of liability was unilateral.

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This Court in the judgment dated 10.07.2018 in W.A. No.284/2018 has held that penalty under Rule 198(e) of the Kerala Co-operative Societies Rules, which empowers recovery of pecuniary loss caused to the society, can be invoked only as long as the delinquent is an employee of the society and only as a penalty under a disciplinary proceeding. It was further held that if the employee is not in service, the loss allegedly suffered by the Bank has to be quantified by an adjudicatory process under Section 69 of the Co-operative Societies Act. As noticed supra, the resolution fixing the liability was passed after retirement of the appellant. Apart from the same, the liability was fixed without notice to him. The punishment imposed pursuant to the disciplinary proceeding, as noticed first above, was only withholding of promotion and of one annual increment with cumulative effect. Therefore, the respondent is not entitled to withhold any amounts due to the appellant as

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W. A. No.596 of 2016

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pensionary and other benefits resting upon the resolution dated 19.05.2010 fixing liability on the appellant. Apparently though the said meeting resolved to initiate arbitration case against the appellant, the same has not been done so far. Be that as it may, we are of the opinion that the appellant has to be disbursed the entire pensionary and allied benefits payable to him. We are unable to subscribe to the view taken by the learned single Judge relegating the appellant to the remedy under Section 69 of the Co-operative Societies Act.

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In the result, this appeal is allowed. There will be a direction to the respondent to disburse the pensionary and allied benefits due to the appellant within a period of one month.

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Sd/V. CHITAMBARESH JUDGE

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Sd/SATHISH NINAN JUDGE

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kns/-

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//True Copy//

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P.S. to Judge

Pankajakshan v. the Managing Director

Case brief

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Pankajakshan v. the Managing Director

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