M.M. Varghese vs Union Of India

Kerala High Court

M.M. Varghese vs Union Of India on 22 May, 2024

Author: Amit Rawal

Bench: Amit Rawal

                    IN THE HIGH COURT OF KERALA AT ERNAKULAM
                                      PRESENT
                      THE HONOURABLE MR. JUSTICE AMIT RAWAL
                                         &
                     THE HONOURABLE MR. JUSTICE EASWARAN S.
            WEDNESDAY, THE 22ND DAY OF MAY 2024 / 1ST JYAISHTA, 1946
                             OP (CAT) NO. 166 OF 2023

     AGAINST THE ORDER DATED 1.3.2023 IN OA 623/2020 OF THE HON'BLE CENTRAL

                       ADMINISTRATIVE TRIBUNAL, ERNAKULAM

PETITIONER(S)/APPLICANT IN OA:
             M.M. VARGHESE,
             AGED 63 YEARS
             S/O LATE M. V. MATHAI, NAVAL STORES OFFICER (RETD.), MATERIAL
             ORGANISATION, NAVAL BASE, KOCHI- 682004, RESIDING AT MAVUNKAL
             HOUSE, CMC 32/157, CHERTHALA PO, ALAPPUZHA, PIN - 688524

             BY ADVS.
             M.R.HARIRAJ
             AKHILA S.
             ALINA ANNA KOSE
             LAKSHMI.V.S
             GAYATRI VISWANATHAN
             KARTHIKA GANESH



RESPONDENT(S)/RESPONDENTS IN OA:
      1      UNION OF INDIA,
             REPRESENTED BY THE SECRETARY TO GOVERNMENT OF INDIA, MINISTRY
             DEFENCE, SOUTH BLOCK, NEW DELHI, PIN - 110001

     2       THE INTEGRATED HEAD QUARTERS,
             MINISTRY OF DEFENCE (NAVY), REPRESENTED BY THE PRINCIPAL DIRECTOR
             OF CIVILIAN PERSONNEL, NEW DELHI, PIN - 110001

     3       THE CHIEF OF NAVAL STAFF,
             INTEGRATED HEAD QUARTERS OF MINISTRY OF DEFENCE, DIRECTORATE OF
             CIVILIAN PERSONNEL SERVICES, ROOM NO. 100, TALKOTARA STADIUM
             ANNEX, NEW DELHI, PIN - 110001

     4       THE FLAG OFFICER COMMANDING IN CHIEF,
             HEADQUARTERS, SOUTHERN NAVAL COMMAND, REPRESENTED BY THE CHIEF
             STAFF OFFICER (PERSONNEL AND ADMINISTRATION), KOCHI, PIN - 682004

     5       MATERIAL SUPERINTENDENT,
             MATERIAL ORGANISATION, NAVAL BASE, KOCHI, PIN - 682004

             SRI. K.V PRENJITHKUMAR / CGC

             SRI.   HARIRAJ (SR.)


      THIS OP (CAT) HAVING COME UP FOR HEARING ON 22.05.2024, THE COURT ON THE

SAME DAY DELIVERED THE FOLLOWING:
 OP (CAT) NO. 166 OF 2023
                                            2

                                 JUDGMENT

Amit Rawal, J.

Petitioner, Group A officer working as Naval Store Officer, Material Organization aggrieved of non grant of the pension and the interest thereon, after having superannuated on 31.5.2020, approached the Central Administrative Tribunal, Ernakulam vide OA No.180 of 2020.

2. Petitioner joined the Central Government service through the Indian Railways as a Chargeman (Electrical) on 15.11.1980 and participated in the direct recruitment to the post of Assistant Naval Store Officer through proper channel. On selection, joined as Assistant Naval Store Officer, thereafter, was posted/promoted from time to time. At the time of superannuation, he was discharging the duty of Naval Store Officer, a 'Group -A' post.

3. Respondent alleged that on the basis of anonymous complaint from one Mr. Narvekar in May 2019, a fact finding enquiry was initiated and it was found that for the purpose of using the vehicle by the Navy, the vehicle was leased out from a firm where the son of the petitioner had a share. The fact finding enquiry conducted in October 2019 held the petitioner guilty and OP (CAT) NO. 166 OF 2023 3 accordingly, a draft charge memo was referred to the Headquarter ie., the Ministry vide letter dated 4.10.2019 but it did not fructify. In the meantime, petitioner superannuated on 31.5.2020, thus there was neither lapse nor it was for the administrative reasons but for the reasons as noticed above. Rightly so, the Administrative Tribunal granted the payment of pension without interest. There is no illegality and perversity in the order of the Tribunal for granting the interest as the matter is covered under Rule 68 of the CCS Pension Rules.

4. On the contrary, the learned counsel for the petitioner submitted that the interest can be only withheld in case a delinquent employee is served with chargesheet. In support of the contention relied upon Rule 9(6) of the CSS Pension Rules which has not been noticed by the Administrative Tribunal, therefore, there is an abdication in not granting the interest.

5. We have heard the learned counsel for the parties and appraised the paper book. The question in a narrow compass to be decided is only with regard to the grant of interest, for, the Union of India has not assailed the order of the Tribunal with regard to the entitlement of the pension. For examining the aforementioned controversy, it would be expedient to extract the provisions of Rule OP (CAT) NO. 166 OF 2023 4 68 and Rule 9(6) of the CCS Pension Rules.

68. Interest on delayed payment of gratuity 1[(1) If the payment of gratuity has been authorized later than the date when its payment becomes due, and it is clearly established that the delay in payment was attributable to administrative lapses, interest shall be paid at such rate as may be prescribed and in accordance with the instructions issued from time to time : Provided that the delay in payment was not caused on account of failure on the part of the Government servant to comply with the procedure laid down by the Government for processing his pension papers.] 2(2) Every case of delayed payment of gratuity shall be considered by the Secretary of the Administrative Ministry or the Department in respect of its employees and the employees of its attached and subordinate offices and where the Secretary of the Ministry or the Department is satisfied that the delay in the payment of gratuity was caused on account of administrative lapse, the Secretary of the Ministry or the Department shall sanction payment of interest. 2(3) The Adminsitrative Ministry or the Department shall issue Presidential sanction for the payment of interest after the Secretary has sanctioned the payment of interest under sub- rule (2). 2(4) In all cases where the payment of interest has been sanctioned by the Secretary of the Administrative Ministry or the Department, such Ministry or the Department shall fix the responsibility and take disciplinary action against the Government servant or servants who are found responsible for the delay in the payment of gratuity.

9. Right of President to withhold or withdraw pension (6) For the purpose of this rule, -

(a) departmental proceedings shall be deemed to be instituted on the date on which the statement of charges is issued to the Government servant or pensioner, or if the Government servant has been placed under suspension from an earlier date, on such date ; and

(b) judicial proceedings shall be deemed to be instituted -

(i) in the case of criminal proceedings, on the date on which the complaint or report of a police officer, of which the Magistrate takes cognizance, is made, and (ii) in the case of civil proceedings, on the date the plaint is presented in the court.

OP (CAT) NO. 166 OF 2023 5

6. We do not find any justification for not granting interest. Rule 9(6) clearly envisage that in case the delinquent is not served the charge sheet, obviously, the department would be at lapse and the interest on the pension is inevitable. It would also be expedient to extract the relevant findings of the CAT in denying the interest. Paragraph 18 of the same reads thus:

18. An evaluation of the entire facts show that the contentions (a) and (d) advanced by the learned counsel for the applicant are liable to be accepted. Disciplinary proceedings as against the applicant is not sustainable on the basis of the pseudonymous complaint. Further, by virtue of Rule 9(2)(b)(ii) further inquiry is not liable to be proceeded. Consequently, the relief No. (c) sought by the applicant is liable to be granted in the light of the above conclusion. Hence, it is to be held that the respondents are not competent to proceed with the inquiry pursuant to the complaint lodged by Smt. D.V. Narvekar. Consequently, the applicant is entitled for all the retirement benefits and pension as per law. Hence, relief No. (c) is liable to be granted directing the respondents to release the retirement benefits due to the applicant and to pay and continue to pay pension to the applicant as per rules. Though interest was claimed on the delayed benefits, since we are allowing the OA on a technical finding, we are not inclined to grant interest on the benefits due to the applicant.

7. We do not agree with the findings whereby the Administrative Tribunal rejected the interest by giving the benefit to the petitioner on technical finding. There is no such technical reasons but it has to be on the basis of the interpretation of applicable rules. For the reason aforementioned, the OP(CAT) is allowed in totality. The order of the Tribunal is modified. OP (CAT) NO. 166 OF 2023 6 Petitioner is entitled to interest @ 8% from 31.5.2020 till the date of the actual payment. Respondents are directed to comply with the directions within a period of 45 days from the date of receipt of a certified copy of this judgment.

SD/-

AMIT RAWAL JUDGE SD/-

sab                                        EASWARAN S.
                                               JUDGE
 OP (CAT) NO. 166 OF 2023
                                 7

                APPENDIX OF OP (CAT) 166/2023

PETITIONER ANNEXURES

Annexure A1        A   TRUE   COPY   OF   THE   REQUEST  NO.

MOK/EO/2730/VIG. DATED 02.01.2020 MADE BY THE MATERIAL ORGANIZATION TO THE FLAG OFFICER COMMANDING-IN CHIEF Annexure A2 A TRUE COPY OFLETTER NO.

CS2730/POLICY(VIG.)DATED 24.04.2020 ISSUED BY THE HQ, SNC TO THE CHIEF OF NAVAL STAFF Annexure A3 A TRUECOPY OF THE LETTER NO. MMV/NSO/20- 21/03 DATED 12.05.2020 Annexure A4 A TRUE COPY OF THE LETTER NO. MOD ID NO.

5(2)(V)/2020-D(LAB) DATED12.03.2020 ISSUED BY THE MINISTRY OF DEFENCE D(LAB) SECTION ALONG WITH RETYPED COPY Annexure A5 A TRUE COPY OF THE LETTER NO.

                   CPT(DV)/3113/20/GP'A'   DATED    09.07.2020
                   FORWARDING       THE       LETTER       NO.

CPT(PP)/0008/PEN/GEN. DATED 14.05.2020 Annexure A6 A TRUE COPY OF THE POINTS INQUIRY ISSUED TO HIM ON 06.07.2019 Annexure A7 A TRUE COPY OF THE APAR IN RESPECT OF THE APPLICANT FOR THE PERIOD FROM 01.04.2019- 31.03.2020 DATED18.08.2020 Annexure A8 A TRUE COPY OF THE LETTER NO.

2730/POLICY(VIG.) DATED 18.09.2020 Annexure R-1 TRUE COPY OF DECLARATION OF FAMILY DETAILS FURNISHED BY THE APPLICANT DATED 23 OCT 2019 Annexure R-2A TRUE COPY OF THE PERFORMA DATED 23 OCT 19 Annexure R-2B TRUE COPY OF NOMINATION DEATH-CUM-

RETIREMENT GRATUITY DATED 22 OCT 19 OP (CAT) NO. 166 OF 2023 8 Annexure R-2C TRUE COPY OF NOMINATION FOR CENTRAL GOVERNMENT EMPLOYEES GROUP INSURANCE SCHEME, 1980 DATED 22 OCT 19 Annexure R-3 TRUE COPY OF EXTRACT OF NAVY ORDER (SPECIAL) 01/14 DATED 11 FEB 14 Annexure R-4 TRUE COPY OF DOPT OM NO. 28027/3/87-ESTT.

(A) DATED 29 JUN 1990 ALONG WITH RETYPED COPY Annexure A9 A TRUE COPY OF THE APPLICATION AND THE REPLY DATED 28.10.2021, GIVEN UNDER THE RTI ACT TO THE APPLICANT Annexure MA1 TRUE COPY OF CALCULATION SHEET PREPARED BY THE ESTABLISHMENT OFFICER FOR MATERIAL SUPERINTENDENT REGARDING CALCULATION OF PENSION, RETIREMENT GRATUITY AND COMMUTATION OF PENSION Exhibit P1 A TRUE COPY OF THE OA NO. 623/2020 FILED BEFORE THE CENTRAL ADMINISTRATIVE TRIBUNAL ALONG WITH ANNEXURES Exhibit P2 TRUE COPY OF THE REPLY STATEMENT FILED BY THE RESPONDENTS ALONG WITH ANNEXURES Exhibit P3 TRUE COPY OF THE REJOINDER FILED BY THE APPLICANT ALONG WITH ANNEXURES Exhibit P4 A TRUE COPY OF MA 572/2021 ALONG WITH ANNEXURE MA1 Exhibit P5 A TRUE COPY OF FINAL ORDER DATED 01/03/2023 IN OA 623/2020 Exhibit P6 A TRUE COPY OF LETTER NO. CS 2730/POLICY(VIG) DATED 08/09/2021 ALONG WITH THE RETYPED COPY Exhibit P7 A TRUE COPY OF ORDER NO.

                   CP(G)/0667/INMMS/NFU/JAG-I                  DATED
                   31/01/2023
 OP (CAT) NO. 166 OF 2023
                                   9



Exhibit P8         A TRUE COPY OF THE PAY FIXATION MEMO DATED
                   18/04/2023

Exhibit P9         A TRUE COPY OF THE CALCULATION SHEET

ISSUED FOR THE MATERIAL SUPERINTENDENT Exhibit P10 TRUE COPY OF THE CORRIGENDUM PPO FROM THE OFFICE OF THE PRINCIPAL CONTROLLER OF DEFENCE ACCOUNTS(PENSION), PRAYAGRAJ Exhibit P11 A TRUE COPY OF THE PENSION SLIP FOR JANUARY, 2024 Exhibit P12 9. A TRUE COPY OF THE EMAIL SHOWING THE CREDIT OF RS. 42,14,773/- (RUPEES FORTY TWO LAKHS FOURTEEN THOUSAND SEVEN HUNDRED AND SEVENTY THREE ONLY) TO MY ACCOUNT