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Mohan Behera vs Managing Director
2025 Latest Caselaw 9884 Ori

Citation : 2025 Latest Caselaw 9884 Ori
Judgement Date : 12 November, 2025

Orissa High Court

Mohan Behera vs Managing Director on 12 November, 2025

              IN THE HIGH COURT OF ORISSA, CUTTACK


                            W.P.(C) No.17399 of 2018
                             (In the matter of an application under
                     Articles 226 & 227 of the Constitution of India, 1950)



            Mohan Behera                              .......        Petitioner

                                               -Versus-

            Managing Director, Odisha
            Lift Irrigation Corporation
            Limited, Bhubaneswar and
            another                                   .......       Opp. Parties

                  Advocate for the parties
                  For Petitioner                           : Mr. Somanath Mishra,
                                                             Advocate

                  For Opp. Parties                         : Mr. B.K. Sharma,
                                                             Sr. Advocate


                                    ----------------------------


           CORAM: JUSTICE SANJAY KUMAR MISHRA
       ---------------------------------------------------------------------------------
       Date of Hearing: 31.10.2025                 Date of Judgment: 12.11.2025
       ---------------------------------------------------------------------------------

S.K. Mishra, J.      The Petitioner, who is working as Junior

       Engineer (Civil) in the Opposite Parties-Corporation i.e.

       Odisha       Lift    Irrigation       Corporation           Limited,    shortly

       hereinafter, "OLIC Ltd.", has preferred the present writ

       petition with a prayer to set aside office order dated
 26.09.2018 (Annexure-6), so far as it relates to the

Petitioner, and to pass further appropriate order, as

deemed fit and proper, in the facts and circumstances of

the case.

2.           So far as Office Order dated 26.09.2018, it is a

common order, vide which the Financial Advisor and

Chief Accounts Officer, OLIC Ltd. (Opposite Party No.2)

ordered to recover the alleged outstanding amount under

Corporation H/A-18(03) from the existing employees of

the Corporation, as per the list enclosed to the said order,

including the present Petitioner, whose name finds place

at Sl. No.24 of the said list.

3.           The admitted facts on record, which compelled

the Petitioner to knock the door of this Court, is that

while the Petitioner was working as Junior Engineer, L.I.

Division, Berhampur, repeated thefts occurred in the

Central Store of the Corporation. Some materials were

stolen from the said store on three occasions during the

year 2004 & 2005, for which F.I.Rs. were lodged before

the local Police Station by the Petitioner. The Executive



W.P.(C) No.17399 of 2018                            Page 2 of 18
 Engineer, L.I. Division, Berhampur also informed the

Managing Director of the Corporation (Opposite Party

No.1) vide his letter dated 03.10.2007 regarding such

theft of stock materials from the Central Store of the L.I.

Division, Berhampur.

4.           Pursuant        to   such    communication     of    the

Executive Engineer, L.I. Division, Berhampur dated

03.10.2007,       the      Superintending    Engineer,    Southern

Circle, OLIC Ltd. Berhampur also wrote to the Director

(Technical), OLIC Ltd., Bhubaneswar suggesting therein

to drop the amount shown as outstanding against the

Petitioner, who was the In-charge of the Central Store,

Berhampur. The Petitioner also, on being asked by the

Executive Engineer, L.I. Division, Berhampur, submitted

a compliance report dated 21.10.2017, so far as a sum of

Rs.1,24,774.20, which was booked against him towards

shortage of stock materials in the Central Store due to

thefts    occurred         during   his    incumbency,    i.e.,    on

18.08.2004,        14.12.2004        and     27.11.2005.         Such

compliance report being forwarded to the Financial



W.P.(C) No.17399 of 2018                                  Page 3 of 18
 Advisor and Chief Accounts Officer (Opposite Party No.2),

it was returned vide letter dated 04.12.2017 to the

Executive Engineer, L.I. Division, Berhampur (Ganjam)

advising to verify the same at his end and report to him

immediately. Pursuant to such communication, the

concerned Executive Engineer did the needful and

reported to the Opposite Party No.2 vide letter dated

30.01.2018.

5.           However,      without       considering    the    said

communication made by the Executive Engineer, the

Opposite Party No.2 issued the common Office Order

dated 26.09.2018 (Annexure-6) for recovery of the

outstanding amount from various employees/officers,

including       the        Petitioner,     without     any    prior

communication, thereby giving him an opportunity to

have his say in the said regard.

6.            Though the writ petition was pending since

2018, after about six years, a Counter Affidavit was filed

on behalf of the Opposite Parties in January, 2025,

taking a stand therein that the concerned Executive



W.P.(C) No.17399 of 2018                                 Page 4 of 18
 Engineer, vide his communication dated 18.09.2018,

proposed to recover the said amount from the Petitioner,

as the said amount was shown as an outstanding

amount against him. It has further been stated in the

Counter Affidavit that the communications made by the

Officers of the Corporation are not binding on the Head

Office, as those communications are mere suggestions.

That apart, it has been stated that, in the communication

dated 30.01.2018 the concerned Executive Engineer

had alternatively suggested to recover the said amount

from the Petitioner, since such loss was caused to the

Corporation because of the latches and negligence of the

Petitioner. Hence, it being public money, the Corporation

was justified to order to recover the said amount from the

Petitioner and nothing wrong has been committed by

passing such order of recovery.

7.           Learned Counsel for the Petitioner, reiterating

the facts detailed in the writ petition so also drawing

attention         of       this   Court      to      various

communications/letters/office orders, as at Annexures-1



W.P.(C) No.17399 of 2018                           Page 5 of 18
 to 5 submitted that, the Petitioner could not have been

blamed for the thefts occurred in the Central Store of L.I.

Division, Berhampur of the Corporation. That apart, vide

the    communication        made     by   the     then    Executive

Engineer, L.I. Division, Berhampur dated 03.10.2007, it

was brought to the notice of the Managing Director of the

Corporation that as most of the staff have gone on VRS

on 18.08.2004, due to lack of staff, even though a Home

Guard has been engaged for watch and ward of the

Central Store of the Division, still such thefts have

occurred.

7.1           That    apart,   the   Petitioner    also   promptly

reported the said incidents to the Police and lodged

F.I.Rs. and investigations were made by the Police in

presence of the Petitioner, Division Officer and Division

Staff. A recommendation was made by the then Executive

Engineer,      L.I.   Division,   Berhampur       that    as   such

materials cannot be realized because of the inaction of

the Police, to treat the same as loss of Corporation

property and take necessary action to waive out the cost



W.P.(C) No.17399 of 2018                                  Page 6 of 18
 of the materials. It was also requested to intimate the

office of the Executive Engineer, L.I. Division, Berhampur

to square up the 18'3' Head of A/c in the name of J.E.

and A.E. of Central Store. Despite such recommendation,

action has been taken by the Opposite Party No.2 for

recovery, which is legally unsustainable.

7.2.         Learned Counsel for the Petitioner further

submitted that, before taking such decision to recover the

alleged outstanding amount because of the theft of

materials from the Central Store of the L.I. Division,

Berhampur, the Petitioner was neither asked to show

cause as to why such amount shall not be recovered from

him nor any responsibility was fixed on the Petitioner

alleging therein that he is responsible for such theft

repeatedly occurred in the Central Store of the L.I.

Division, Berhampur during his incumbency. No enquiry

was made to the said effect, giving due opportunity of

hearing to the Petitioner so also determining the amount

to be recoverable from the Petitioner. Hence, the entire

action of the authority concerned to take a decision to



W.P.(C) No.17399 of 2018                         Page 7 of 18
 recover the said amount from the salary of the Petitioner

is illegal and unjustified.

7.3.         Learned Counsel for the Petitioner submitted

that, though the Petitioner has filed I.A. No.14738 of

2018 along with the writ petition praying therein to stay

operation of the impugned order regarding recovery of

Rs.20,000/- from his salary during pendency of the writ

petition, instead of staying the said action of recovery of

the Management, as an interim measure, it was ordered

on 11.12.2018 that, any recovery made from the salary of

the Petitioner shall abide by the result of the present writ

petition. In the meantime, the entire amount has been

recovered from the salary of the Petitioner and to the said

effect an Affidavit has been filed, pursuant to order dated

19.08.2025 passed by this Court.

7.4          Accordingly, learned Counsel for the Petitioner

submitted that the impugned order, so far as the present

Petitioner is concerned, deserves to be set aside. That

apart, direction be given to the Opposite Parties-

Corporation to refund the said amount illegally deducted



W.P.(C) No.17399 of 2018                           Page 8 of 18
 from the salary of the Petitioner with interest so also

costs be imposed on the Opposite Parties-Corporation for

harassing the Petitioner. To Substantiate his submission,

learned Counsel for the Petitioner relied on the judgment

of the Supreme Court reported in 2017 (II) OLR 503 SC

(State     of    Punjab    and      others   Vs.   The     Senior

Vocational Staff Masters Association and others) and

judgment of this Court reported in 2017 (I) OLR 922

(Sarat Chandra Dash Vs. Orissa State Cooperative

Agricultural & Rural Development Bank Ltd. and

others).

8.           Per    Contra,   Mr.    Sharma,   learned      Senior

Counsel for the Opposite Parties-Corporation, drawing

attention of this Court to the letter dated 18.09.2018 of

the Executive Engineer, L.I. Division, Berhampur, as at

Annexure-B/1 to the Counter Affidavit, submitted that it

being so recommended by the concerned Executive

Engineer, the Authority concerned took a decision to

recover the said outstanding amount from the Petitioner,

whose name finds place at Sl. No.24 of the enclosure of



W.P.(C) No.17399 of 2018                                 Page 9 of 18
 the said communication, as the Petitioner was the

concerned Junior Engineer posted during the period on

which repeated thefts occurred in the Central Store of the

L.I. Division, Berhampur. Hence, such decision of the

Authority concerned to recover the value of the stolen

articles, which occurred during tenure of the Petitioner, is

legally justified and deserves no interference by this

Court.

9.           As is revealed from the contents of the letters

dated 03.10.2007 so also dated 30.01.2018 of the

Executive Engineer, L.I. Division, Berhampur (Ganjam)

and    other    correspondences   on   record,   the   alleged

outstanding amounts shown against the Petitioner were

admittedly towards value of materials stolen from the

Central Store of the L.I. Division, Berhampur during the

tenure of the Petitioner. The Executive Engineer in his

letter dated 03.10.2007 also intimated to the Managing

Director of the Corporation regarding such theft occurred

due to lack/shortage of staff, which happened as most of

the staff took VRS on 18.08.2004 and the watch and



W.P.(C) No.17399 of 2018                           Page 10 of 18
 ward duty was assigned to a Home Guard. The contents

of the said letter dated 03.10.2007, as at Annexure-1,

being relevant for proper adjudication of the present lis,

are extracted below:

            "OFFICE OF THE EXECUTIVE ENGINEER: L.I.
                     DIVISION, BERHAMPUR

     Letter No.4383                           Dated 3.10.2007
     To
             Managing Director,
             O.L.I.C. Ltd., Bhubaneswar

     Sub:    Theft of stock materials of Central Store of L.I.
             Division, Berhampur
     Sir,

             In inviting a kind reference to the subject cited
     above it is to intimate you that an amount of
     Rs.1,15,333.20 has been booked in 18‟ 03‟ in the name of
     Central Store J.E(C) Sri Mohan Behera as the materials
     have been stolen from the Central Store of L.I. Divn.,
     Berhampur. In this connection it is to intimate you that on
     18.08.2004 theft had been occurred in Central Store
     of L.I. Divn., Berhampur by some miscreants. Even
     though a home Guard had been engaged for watch &
     ward of this division due to lack of staff as most of
     the staff have gone on Vrs on 18.08.04. The J.E.
     Central Store has reported to police vide Lr.No.82 dt.
     19.08.2004. After lodging of F.I.R. the police has
     investigated the Central Store in presence of A.E.s
     Divisional Officer & Division staff. On 14.12.2004
     again theft has been occurred in the same Central Store
     i.e. within one 'O' clock to four „O‟ clock. The J.E. Central
     Store has lodged FIR vide Lr.No.117 dt.14.12.04 at Bada
     Bazar Police Station, Berhampur and letter No. 81 dt.
     28.11.05 and reminder No.32 Dt. 6.9.06 regarding loss of
     Central Store Materials. The Police has investigated the
     matter and has mentioned that this is under investigation.
     The undersigned has given a reminder to Bada Bazar
     Police Station vide Lr.No.4812 dt. 30.11.04 for realization
     of the materials and Investigation report about loss of



W.P.(C) No.17399 of 2018                                     Page 11 of 18
       materials of OLIC. Further above matters has been
      intimated to Superintendent of Police, Police Dist.,
      Berhampur vide this Office Lr.No.146 dt. 24.01.2005. The
      Xerox copy of all the relevant papers are enclosed
      separately for your kind scrutiny. The details of loss of
      materials are enclosed separately for your kind
      verification.
              When     the   shortage     of    materials   are
      incorporated in the books of Account as loss in the
      stock register the above amount was booked under
      18' 03' in the name of the concerned J.E. of Central
      Store. At present after several reminder when the
      A..E. and J.E. approached the concerned police
      station about the Docket No. of F.I.R. and the
      investigation report of the loss of materials, the
      police refused to give the investigation report as well
      as FIR number lodged by the concerned J.E. the
      undersigned has instructed the Asst. Executive
      Engineer (Elect) of this division to enquire on the
      theft of materials the concerned A.E.E. (Elect.) has
      investigated the matter and submitted report to the
      undersigned which is enclosed for your verification.
              In this context I am to request you that the
      above materials cannot be realized at present and
      these materials may be treated as loss of
      Corporation property.
              Necessary action may be taken to waive out
      the cost of the materials and intimate to this office
      to square up the 18'3' Head of A/c. in the name of
      J.E. and A.E. of Central Store.
              This is submitted for favour of kind information
      and perusal action.
                                          Yours faithfully,
                                                Sd/-
                                        Executive Engineer
                                    L.I. division, Berhampur"

                                         (Emphasis supplied)
10.          From the contents of the said letter, it is amply

clear that despite the Central Store of the Corporation at

Berhampur being guarded by a Home Guard, theft

occurred repeatedly during the tenure of the Petitioner as


W.P.(C) No.17399 of 2018                                Page 12 of 18
 Junior Engineer In-charge of the Central Store, L.I.

Division, Berhampur. That apart, as is revealed from the

correspondences made by the then Executive Engineer,

so also the compliance report submitted by the Petitioner,

the Petitioner did his duty by lodging F.I.Rs before the

concerned Police Station and was pursuing the said

matters with the Police to do the needful.

11.           That apart, a report being submitted vide

communication dated 21.10.2017 before the Executive

Engineer, L.I. Division, Berhampur regarding the action

taken by the Petitioner, a recommendation was made by

the    Executive      Engineer,   L.I.   Division,   Berhampur

(Ganjam) vide letter dated 30.01.2018 to treat the said

value of the stolen articles as loss to the Corporation and

to drop the amount shown against the Petitioner to be

outstanding. However, the Opposite Parties failed to act

in terms of the said recommendation on the plea that

such recommendation of the concerned Authority, i.e.,

Executive Engineer, L.I. Division, Berhampur, is not

binding      on     them.   The     contents    of   the     said



W.P.(C) No.17399 of 2018                              Page 13 of 18
 recommendation submitted by the Executive Engineer,

L.I. Division, Berhampur (Ganjam), being relevant, are

extracted below.


          "OFFICE OF THE EXECUTIVE ENGINEER: LIFT
          IRRIGATION DIVISION: BERHAMPUR (GANJAM)

             Letter No:                       /OLIC Date:

             To
                    The Financial Advisor &
                    Chief Accounts Officer,
                    Odisha Lift Irrigation Corporation Ltd.,
                    Plot No.17/2, Nayapalli,
                    Bhubaneswar-751012

     Sub:-         Submission of compliance report of Sri
                   Mohan Behera, Ex-Junior Engineer (Civil),
                   Central Store, Berhampur.

     Ref:-         Your Letter No.14483 dtd. 4.12.2017 & 236
                   dtd.10.01.2018 of the Deputy Chief Accounts
                   Officer, OLIC Ltd., Bhubaneswar.

     Madam,
                      With reference to the above cited subject and
     letter it is to inform you that the compliance submitted by
     Sri Mohan Behera, Ex-Junior Engineer (Civil) Central Store,
     Berhampur has been verified by the undersigned and I
     am to say that the theft case is true, FIR lodged to
     Police Station by the Junior Engineer, and Executive
     Engineer but final report of Police is not received till
     date. Superintending Engineer (S.C), OLIC Ltd.,
     Berhampur had also communicated vide his
     No.1124(WE) dtd. 5.10.2007 to the Director (Tech.),
     OLIC Ltd., Bhubaneswar to drop the above amount.
     The Xerox copy the above Letter is enclosed for your
     reference. The Xerox copy of the E.I.R. of Junior Engineer
     and Executive Engineer also enclosed for your kind
     reference.
                      Hence, Head Office may kindly instruct to
     Division whether the amounting to Rs.1,24,774.20 will be
     dropped or recovered from Sri Mohan Behera, Ex-Junior


W.P.(C) No.17399 of 2018                                       Page 14 of 18
       Engineer(Civil), Central Store, Berhampur. Since Sri
      Behera has observed all official formalities to get
      recover the materials as it was theft, but it was in a
      vain. Hence the above cost is loss to the Corporation.
      Looking to the above circumstances the above
      amount, if desired may be treated as loss to the
      Corporation and suggestion may be issued for drop
      the amount 18(03) against Sri Mohan Behera.
       Accounting adjustment may kindly be issued to this
      Division for settlement of his case.
                     This is for favour of your kind information
      and necessary action.
                                        Yours faithfully,
                                             Sd/-
                                       Executive Engineer"

                                          (Emphasis supplied)

12.          A stand has been taken in the Counter

Affidavit that such a decision to recover from the

Petitioner was taken by the Authority concerned, based

on the recommendation of the Executive Engineer, L.I.

Division, Berhampur dated 18.09.2018. As is ascertained

from the said communication made to the Managing

Director of the Corporation by the then Executive

Engineer, L.I. Division, Berhampur (Ganjam), he did not

take note of the previous communications made by his

predecessors to the Opposite Party Nos.1 & 2 in the said

regard, which have been extracted above.

13.          Further, the Opposite Parties have also failed

to demonstrate before this Court that when a stand has

W.P.(C) No.17399 of 2018                                 Page 15 of 18
 been taken in the Counter that any recommendation

made by the Executive Engineer is not binding on them,

how they could act on the subsequent recommendation

made by the succeeding Executive Engineer vide letter

dated     18.9.2018,       that   too   without   making     any

communication to the said effect to the Petitioner,

thereby giving him an opportunity to have his say in the

said regard.

14.          Law is well settled that fair play in action

warrants that no such order, which has the effect of an

employee suffering civil consequences, should be passed

without putting the concerned to notice and giving him a

hearing in the matter.

15.          From the discussions made above, this Court

is of the view that, responsibility could not have been

fixed on the Petitioner for such thefts and no recovery

should have been made from his salary showing the value

of the stolen articles from the Central Store to be

outstanding against the Petitioner, only on the ground




W.P.(C) No.17399 of 2018                             Page 16 of 18
 that he was then working as the Junior Engineer, Central

Store, L.I. Division, Berhampur.

16.          This Court is of further view that the Authority

concerned was not justified to recover the alleged

outstanding from the Petitioner without fixing any

responsibility on the Petitioner thereby asking him to

show cause and making an enquiry to the said effect and

in absence of any finding to the effect that the Petitioner

was responsible for such repeated thefts occurred in the

Central Store of the Corporation at Berhampur. Such

unilateral action to deduct the outstanding amount

under 18'3' Head of A/c to the tune of Rs.1,24,774.20 is

illegal and unjustified, being hit by the principles of

natural justice and deserves interference.

17.          Accordingly, this Court is inclined to set aside

the impugned order dated 26.09.2018, as at Annexure-6,

so far as the Petitioner is concerned, whose name finds

place at Sl. No.24 of the list appended to the said order.

18.          Pursuant to the order dated 19.08.2025, since

an Affidavit has been filed by the Petitioner on 8th



W.P.(C) No.17399 of 2018                           Page 17 of 18
 September, 2025 before this Court that an amount of

Rs,1,24,774.20 has already been deducted from his

salary during pendency of the present writ petition,

which was not disputed by the Corporation, the Opposite

Parties are directed to refund the said amount                              to the

Petitioner with 7% simple interest thereon from the date

of last deduction made from the salary of the Petitioner

till the date of actual payment. Refund shall be made

within a period of four weeks from the date of production

of the certified copy of this Judgment, failing which the

Corporation shall be liable to pay 12% penal interest for

the entire period.

19.          The writ petition stands allowed and disposed

of accordingly. No order as to costs.



                                         ...................................
                                           S.K. MISHRA, J.

Orissa High Court, Cuttack Signature Not Verified Dated the 12th November, 2025 /Prasant Digitally Signed Signed by: PRASANT KUMAR PRADHAN Designation: Secretary Reason: Authentication Location: High Court of Orissa, Cuttack. Date: 12-Nov-2025 19:23:01

 
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