Citation : 2021 Latest Caselaw 537 Guj
Judgement Date : 18 January, 2021
C/LPA/713/2020 ORDER
IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
R/LETTERS PATENT APPEAL NO. 713 of 2020
In
R/SPECIAL CIVIL APPLICATION NO. 17921 of 2017
With
CIVIL APPLICATION (FOR STAY) NO. 1 of 2020
In
R/LETTERS PATENT APPEAL NO. 713 of 2020
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THE STATE OF GUJARAT
Versus
KIRITKUMAR MOHANLAL BANGDIWALA
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Appearance:
MS MANISHA L SHAH, GOVERNMENT PLEADER, Assisted by MS
AISHWARYA GUPTA, AGP for the Appellant(s) No. 1,2,3
MR CJ VIN(978) for the Respondent(s) No. 2
MS MAMTA R VYAS(994) for the Respondent(s) No. 1
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CORAM: HONOURABLE THE CHIEF JUSTICE MR. JUSTICE VIKRAM NATH
and
HONOURABLE MR. JUSTICE ASHUTOSH J. SHASTRI
Date : 18/01/2021
ORAL ORDER
(PER : HONOURABLE THE CHIEF JUSTICE MR. JUSTICE VIKRAM NATH)
1. We have heard Ms. Manisha Lavkumar Shah, learned Government Pleader, assisted by Ms. Aishwarya Gupta, learned Assistant Government Pleader, for the State- appellants, Ms. Mamta R. Vyas learned counsel representing respondent No.1 and Shri Chandresh Vin, learned counsel appearing for respondent No.2 University.
2. This appeal under Clause 15 of the Letters Patent has been preferred assailing the correctness of the judgment and order dated 19.2.2020 passed by learned Single Judge in Special Civil Application No.17921 of 2017, whereby learned Single Judge allowed the writ petition, granting the three reliefs
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as claimed by the petitioner therein, i.e. (1) the order of recovery of excess amount paid to the petitioner was quashed, (2) interest of 9% per annum on the delayed payment of retiral dues was awarded and (3) the respondents were directed to recompute, calculate and revise the pension of the petitioner with all consequential benefits on the basis of last pay drawn fixed at Rs.11,575/-.
3. The original writ petitioner was an Estate Engineer working with the respondent- Veer Narmad South Gujarat University, Surat from 1980. In 1999, the petitioner applied for premature retirement on medical grounds, also known as retirement on the ground of invalidation. The said application dated 17.3.1999 remained pending with the University with no orders. In the meantime, the petitioner approached the Services Tribunal. During the pendency of the matter before the Tribunal, the petitioner superannuated on 24.3.2003. Initially, the Tribunal disposed of the matter as having been substantially rendered infructuous, however requiring the University to decide the status of the petitioner during the period from 1999 to 2003, i.e. after the time he had applied for retirement on the ground of invalidation till the time he superannuated. Again, when nothing happened, fresh petition was filed before the Tribunal, which came to be decided in 2007. Operative portion of the judgment of the Tribunal as contained in para 21 thereof reads as under:-
"21. In view of discussion hereinabove, it is declared that petitioner is entitled to have the pension and pensionary benefits on the basis of his reaching the age of superannuation. Action of opponents especially of Opp. No.1 Uni., not to retire the petitioner accordingly, is hereby declared arbitrary, illegal, unreasonable and unjust. It is declared that petitioner is entitled to have the pension and pensionary benefits from the date of his superannuation i.e.
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24/3/03 with interest on arrear at the rate of 9% pa from the date of his making application and retire him as such i.e. application dtd. 2/2/04 (Annex. M., Page-55 of the record) till actual payment. The request of Ld. Ad. Mr. H.J. Nanavaty to award 12% interest is hereby not accepted considering the rates of interest prevailing in the market right from 2/2/04 to today.
Opponents are hereby directed individually and collectively to process the pension papers, and finalize the pension and to see that arrear or all retirement benefits reach to the petitioner along with interest within period of three months from the date of receipt of free copy of this Judgment at one's end from the office of this Tribunal on or service of photocopy of free copy of this Judgment duly secured by or on the behalf of the petitioner from the office of this Tribunal, whichever is earlier.
Opponents are hereby further directed to go on paying pension regularly at the end of every month to the petitioner as per rules till he or his successor's remain entitled for the same."
4. It appears that after the order of the Tribunal passed in 2007, the provisional pension of the petitioner was determined in 2014. He was also paid the arrears calculated at the pension determined in 2014 provisionally. When the matter came up for final pension before the competent authority, it was noticed that 2014 fixation of pension was wrongly done. Accordingly, in 2017, three separate orders were passed. On 19.1.2017, the pension which was fixed in 2014 was reduced substantially. Again in September 2017, an order was passed for recovery of the excess amount of pension paid to the petitioner for the period from 2003 to 2017, which was approximately Rs.10 lac and odd. Aggrieved by the same, Special Civil Application No.17921 of 2017 was filed praying for quashing of the said orders, reducing the pension and directing for recovery and also to make deductions from the pension every month.
5. Learned Single Judge vide impugned judgment and order granted all the three reliefs claimed by the petitioner. Insofar
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as recovery was concerned, learned Single Judge applied the judgment of Supreme Court in the case of State of Punjab and others Vs. Rafiq Masih (White Washer) reported in (2015)4 SCC 334. Insofar as the claim of interest on delayed payment was concerned, the Court awarded 9% interest per annum and insofar as calculation of re-fixation of pension was concerned, learned Single Judge accepted the case of the petitioner and directed accordingly.
6. Learned Government Pleader Ms. Manisha Lavkumar Shah submitted that learned Single Judge was in error on all the three counts while granting the reliefs. Firstly, according to her, the judgment of Rafiq Masih (Supra) would not be applicable nor would extend any benefit to the petitioner as it was for the benefit of Class-III and Class-IV employees, whereas the petitioner was a Class-II officer. She further placed reliance upon the judgment of the Supreme Court dated 29.7.2016 rendered in Civil Appeal No.3500 of 2006 in the case of High Court of Punjab & Haryana and Ors. Vs. Jagdev Singh (para 11) and submitted that the Supreme Court after considering the judgment of Rafiq Masih (Supra) held that where there is an undertaking of an employee, at the time of provisional fixation, if any excess amount is wrongly calculated would be liable to be recovered and therefore, she submitted that no relief could be granted to the petitioner on this count. Insofar as delayed payment is concerned, she submitted that the State was not at fault nor was there any delay on the part of the State and if there was any delay, it was at the end of the University and therefore, the State could not be saddled with any financial burden on this count. Thirdly, it was submitted that insofar as fixation of pension is concerned, learned Single Judge without recording any finding as to which would be the
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actual provision applicable nor holding that fixation done by the competent authority was incorrect, accepted the case of the petitioner, as such, the said relief granted could also not be sustained.
7. On the other hand, Ms. Mamta Vyas, learned counsel for respondent No.1, submitted that learned Single Judge committed no error, the State is unnecessarily driving the petitioner into litigation who retired in 2003 and had been seeking retirement since 1999 and is now aged about 80 years, as such the matter should be put to an end. According to her, learned Single Judge on all the three counts has rightly awarded the reliefs. She submitted that the orders impugned in the writ petition, i.e. regarding recovery of excess amount paid, deduction from pension and reduction of pension, all had been passed without issuing any notice or giving any opportunity to the petitioner. The orders passed by the competent authority, impugned in the petition, having serious civil consequences are liable to be quashed on that ground also and therefore, this Court may dismiss the appeal and confirm the order of learned Single Judge. Ms. Vyas further submitted that the fixation done by learned Single Judge was in accordance with the relevant provisions applicable. It is also submitted that the arguments which are being advanced by learned Government Pleader in this appeal were neither raised before learned Single Judge nor any such material was placed before learned Single Judge to examine the correctness of fixation of pension.
8. Mr. Chandresh Vin, learned counsel for the respondent University submitted that there was no deliberate delay on the part of the University and whatever delay was caused was on
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account of non-fulfillment of the formalities at the end of the petitioner.
9. Having considered the submissions and having perused the material on record, we are of the view that learned Single Judge as also the competent authority committed error in passing the orders. The State authorities proceeded to pass the orders reducing the pension, recovering the substantial amount and for deduction from pension on monthly basis without affording any opportunity. The said orders could not be sustained on that ground alone. Further, learned Single Judge also apparently failed to take into consideration the true ratio of the case of Rafiq Masih (Supra) as also with regard to the fixation of pension, no finding was recorded.
10. We are of the considered view that it would be in the best interest of both the parties that the competent authorities take a reasoned decision on all the three aspects at the earliest considering the fact that the petitioner had retired in 2003 and would now be more than 75 years old.
11. In view of the above discussion, the Letters Patent Appeal as also the Special Civil Application No.17921 of 2017 are allowed. The order of learned Single Judge dated 19.2.2020 is set aside. Further, the three orders, impugned in the petition, namely 19.1.2017, 13.9.2017 and 16.9.2017, are hereby quashed.
12. The Director of Pension and Provident Fund to take an appropriate decision strictly in accordance to law after affording due opportunity to the petitioner and pass a reasoned order within a period of FOUR WEEKS without fail
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from the date of production of the certified copy of this order and communicate the same to the petitioner. Whatever payment is found due, to be paid forthwith. In the meantime, the pension, which is being paid at present, will continue to be paid. Ms. Vyas, learned counsel for the respondent, states that there will be full cooperation on the part of the respondent in the proceedings before the Director.
13. Since there is already an order for payment of interest, the competent authority would be free to make an inquiry and fix the responsibility of the officers found to have been responsible for the delay and accordingly, recover the amount of interest from them on pro-rata basis of such erring officers of the State, including the University.
14. Consequently, the connected Civil Application stands disposed of.
Sd/-
(VIKRAM NATH, CJ)
Sd/-
(ASHUTOSH J. SHASTRI, J) OMKAR
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