Allahabad High Court
Surendra Singh Sengar vs State Of U.P.Through Registrar ... on 28 July, 2022
Bench: Pankaj Bhatia
HIGH COURT OF JUDICATURE AT ALLAHABAD, LUCKNOW BENCH
?Court No. - 17
Case :- WRIT - C No. - 1001153 of 2009
Petitioner :- Surendra Singh Sengar
Respondent :- State Of U.P.Through Registrar Co-Operative Society Lucknow
Counsel for Petitioner :- Anand Prakash Singh
Counsel for Respondent :- C.S.C.
Hon'ble Pankaj Bhatia,J.
Heard the counsel for the petitioner and the learned Standing Counsel.
The present petition has been filed challenging the award dated 17.04.2007 whereby the amount of Rs.42,85,608.00 as surcharge was directed to be recovered in exercise of the power under section 68(2) of the U.P. Cooperative Societies Act 1965 as well as the order dated 04.11.2008 whereby the appeal preferred by the petitioner under section 98 of the Act was dismissed.
The contention, in brief, is that the proceedings were initiated under section 68 of the Act against the petitioner and one Sri R.K. Dhaon mainly on the ground that the said two persons had committed serious irregularities in disbursing the ex gratia amount. It was stated that in terms of the said disbursal, the petitioner was liable to pay the amount of Rs.42,85,608.00 paid to him towards ex gratia. The said order was under challenged in appeal and was affirmed.
The contention of the counsel for the petitioner is that the issue of ex gratia amount is came up for consideration before the Supreme Court in the case of Ghaziabad Zila Sahkari Bank Ltd. vs. Additional Labour Commissioner and others (2007) 11 SCC 756 where after considering the entire nature of ex gratia payment, the Supreme Court recorded as under :
"Since payment of ex-gratia amount of the employees of the bank is a policy matter, the State Government of U.P. has filed Special Leave Petition before this Court questioning the correctness of the orders passed by the High Court for the leave of this Court. The impugned judgment of the High Court suffers from the error of complete non-application of mind on the merits of the case in as much as whole pleadings either before the Commissioner and before the High Court was that the payment of ex-gratia to the employees are against the objects of the society and it is in contravention of the provisions of the U.P. Act 1947, rules and regulations, we have no other option to set aside the same and allow both the appeals filed by the bank as well as the State of U.P. as already indicated in the paragraphs above. The payments already made need not be recovered at this distance of time from the employees of the bank. However we make it clear that the employees are not entitled to ex-gratia payment from now onwards. In the facts and circumstances, we order no costs." .
The said judgment was delivered on 17.01.2007. The counsel for the petitioner argues that in view of the said judgment, it is clear that the amounts already paid need not be recovered from the employees of the Bank. However, it made it clear that from the said date onwards the employees are not entitled to ex gratia payment.
In the light of the said, the short submission of the counsel for the petitioner is that the amount of ex gratia was paid to the petitioner prior to 17.01.2007 i.e. in the year 1995-96, as such the amount could not be recovered and to that extent, the impugned order is liable to be set aside.
In view of the said general directions given by the Supreme Court in the case of Ghaziabad Zila Sahkari Bank Ltd. (supra), clearly the amounts paid prior to the said date could not be recovered, as such, the proceedings which have culminated in order to recover the amount paid prior to 17.01.2007 are not sustainable.
Accordingly, the impugned order dated 17.04.2007 as well as the appellate order dated 04.11.2008 are set aside.
The writ petition stands allowed.
Order Date :- 28.7.2022
VNP/-
