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S.Soundrarajan vs The Managing Director
2023 Latest Caselaw 8490 Mad

Citation : 2023 Latest Caselaw 8490 Mad
Judgement Date : 18 July, 2023

Madras High Court
S.Soundrarajan vs The Managing Director on 18 July, 2023
                                                                              W.P.(MD).No.17263 of 2023




                          BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT

                                             DATED : 18.07.2023

                                                    CORAM

                             THE HONOURABLE MRS.JUSTICE L.VICTORIA GOWRI

                                         W.P.(MD).No.17263 of 2023

                S.Soundrarajan                                                 ... Petitioner

                                                      Vs.


                1.The Managing Director,
                  The Tamil Nadu State Transport
                      Corporation (Kumbakonam) Limited,
                  Kumbakonam.

                2.The General Manager,
                  The Tamil Nadu State Transport
                      Corporation (Kumbakonam) Limited,
                  Trichy Region,
                  Trichy.                                                     ... Respondents

                Prayer : Writ Petition filed under Article 226 of the Constitution of India,
                praying this Court to issue a Writ of Declaration, declaring the action of the
                respondents in recovering a sum of Rs.90,400/- from the petitioner's salary and
                terminal benefits such as Gratuity is illegal, invalid and non-est in law and
                consequently direct the respondents to refund the recovered amount
                Rs.90,400/- to him with interest at 6% per annum payable from 30.04.2020 to
                till the date on which the above amount are settled to him.


https://www.mhc.tn.gov.in/judis



                1/6
                                                                                W.P.(MD).No.17263 of 2023




                                      For Petitioner       : Mr.A.Rahul

                                      For Respondents      : Mr.K.Ramaiah
                                                             Standing Counsel

                                                        ORDER

The present writ petition is for a Writ of Declaration, declaring the action

of the respondents in recovering a sum of Rs.90,400/- from the petitioner's

salary and terminal benefits such as Gratuity is illegal, invalid and non-est in

law and consequently direct the respondents to refund the recovered amount

of Rs.90,400/- to him with interest at 6% per annum payable from 30.04.2020

to till the date on which the above amount are settled to him.

2. By consent of both parties, this Writ Petition is taken up for final

disposal at the stage of admission itself.

3. The petitioner joined the service of the first respondent Corporation as

Driver with effect from 03.01.1992. Thereafter, he was promoted as Senior

Driver and he retired from service with effect from 30.04.2020. The

respondents imposed a recovery from the petitioner to a tune of Rs.90,400/-

towards monetary value equivalent to non-implemented punishments of

https://www.mhc.tn.gov.in/judis

W.P.(MD).No.17263 of 2023

stoppage of increment and the said amount was recovered from his salary from

the months of September 2009 to April 2020 at the rate of Rs.7,000/- each and

every month. The balance amount was recovered from his terminal benefits,

namely, Gratuity. The said recovery was made in violation of the provisions of

the Payment of Gratuity Act. No provision is available in the Gratuity Act

facilitating recovery of monetary value equivalent to non-implemented

punishments.

4. The Hon'ble Division Bench of this Court in W.A(MD)No.465 of 2017

has held that such recovery towards monetary value equivalent to punishments

of non-implemented increment cuts cannot be made either from salary or from

gratuity as there is no provision in the Standing Orders of the first respondent

Corporation. The said judgment has been confirmed by the Hon'ble Supreme

Court of India in SLP Diary No.1755 of 2018 on 09.02.2018.

5. In addition to that, this Court in W.P(MD)No.7558 of 2020, dated

28.07.2020 relying upon the State of Punjab & Others Vs. Rafiq Masih

(White Washer) and Others reported in (2015) 4 SCC 334 dealt with by the

https://www.mhc.tn.gov.in/judis

W.P.(MD).No.17263 of 2023

Hon'ble Apex Court of India. The relevant portion of W.P(MD)No.7558 of

2020 is extracted as follows:

“10. Therefore, the issue as has been rightly pointed out by the learned Counsel for the petitioner has already been settled and in that view of the matter, the impugned order directing the petitioner to pay the said amount of Rs.75,900/- by way of 48 months recovery on monthly basis cannot be sustained, therefore, the said order is liable to be quashed.”

6. In view of the same, the recovery of an amount of Rs.90,400/- from the

petitioner at the verge of his retirement is impermissible in law and hence, this

Court is inclined to declare the action of the respondents in recovering an

amount of Rs.90,400/- from the petitioner's salary and terminal benefits such as

Gratuity as illegal, invalid and non-est in law and further direct the respondents

to refund the recovered amount to the petitioner with interest at the rate of 6%

per annum payable from 30.04.2020.

7. This writ petition stands disposed of, accordingly. There shall be no

order as to costs.





                                                                             18.07.2023


https://www.mhc.tn.gov.in/judis




                                                          W.P.(MD).No.17263 of 2023




                NCC               : Yes / No
                Index             : Yes / No
                Internet          : Yes
                BTR


                To

                1.The Managing Director,
                  The Tamil Nadu State Transport
                      Corporation (Kumbakonam) Limited,
                  Kumbakonam.

                2.The General Manager,
                  The Tamil Nadu State Transport
                      Corporation (Kumbakonam) Limited,
                  Trichy Region,
                  Trichy.




https://www.mhc.tn.gov.in/judis




                                         W.P.(MD).No.17263 of 2023




                                   L.VICTORIA GOWRI, J.

                                                            BTR




                                  W.P.(MD).No.17263 of 2023




                                                    18.07.2023




https://www.mhc.tn.gov.in/judis




 
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