Ajay Kumar Singh vs Provincial Cooperative ...
2023 Latest Caselaw 23584 ALL

HIGH COURT OF JUDICATURE AT ALLAHABAD, LUCKNOW BENCH
 
 


?Neutral Citation No. - 2023:AHC-LKO:57345
 
Court No. - 8
 

 
Case :- WRIT - A No. - 6385 of 2023
 

 
Petitioner :- Ajay Kumar Singh
 
Respondent :- Provincial Cooperative Federation Of U.P. Lko. Thru. Managing Director And Another
 
Counsel for Petitioner :- Shishir Chandra
 
Counsel for Respondent :- Shireesh Kumar
 

 
Hon'ble Pankaj Bhatia,J.

1. The present petition has been filed by the petitioner alleging that even subsequent to the retirement, the gratuity as well as leave encashment, to which, the petitioner is entitled in terms of the Regulation 52 of the 1980 Regulations, has not been refunded. The same is withheld based upon certain audit objections.

2. This Court while deciding a similar issue in Writ-A No.8377 of 2022 (Hari Shankar Pandey vs Provincial Cooperative Federation of U.P. and another, has considered all the arguments and has repelled the submission that the gratuity can be withheld solely based upon the audit objections.

3. Following the said judgment, the present writ petition is allowed. The order dated 21.09.2021 (Annexure No.1) passed by the respondent no.2 is quashed. The respondents are directed to pay the gratuity payable to the petitioner as well as the leave encashment. As the same has not been paid to the petitioner without any cause, the same are directed to be paid along with interest @ 7% per annun in terms of the mandate of Section 7(3A) of the Payment of Gratuity Act.

4. The Counsel for the respondent has drawn my attention to a writ petition filed by the petitioner, wherein, the respondent had sought to recover certain amounts from the salary of the petitioner, which act was stayed by the respondents. The issue raised in the said writ petition and in Special Appeal No.1863 of 2011 (Ajay Kumar Singh vs Secretary, UP Cooperative Societies and others) will have no material bearing in the present order as, the amounts are not now solely based upon audit objection which is contrary to the mandate of Section 4(6) of the Payment of Gratuity Act.

5. The respondent shall also refund the security deposit which was deposited unless the same can be adjusted on the basis of any law.

6. It is clarified that the entire amount of gratuity bears the interest @ 7% from the 30th day when the petitioner was retired till actual payment/ realization. The amount already paid to the petitioner shall be adjusted at the time of final payment.

7. This order has been passed in the presence of Sri Sunil Sharma, learned Counsel for the respondent.

Order Date :- 28.8.2023

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