Delhi High Court - Orders
Pankaj Kumar Prasad vs National Seeds Corporation Ltd on 27 August, 2020
Author: Jyoti Singh
Bench: Jyoti Singh
$~A-5
* IN THE HIGH COURT OF DELHI AT NEW DELHI
+ W.P. (C) 5724/2020
PANKAJ KUMAR PRASAD ..... Petitioner
Through Mr. A.K. Singla, Sr. Advocate with
Mr. Rahul Shukla, Advocate
versus
NATIONAL SEEDS CORPORATION LTD. ..... Respondent
Through Mr. Ghanshyam Joshi & Mr. Chirag
Joshi, Advocates
CORAM:
HON'BLE MS. JUSTICE JYOTI SINGH
ORDER
% 27.08.2020 Hearing has been conducted through Video Conferencing. CM 20685/2020 (Exemption) Allowed subject to all just exceptions.
Application stands disposed of.
W.P. (C) 5724/2020 & CM 20683/2020 and 20684/2020 Petitioner herein lays challenge to the impugned communication dated 13.01.2020 as well as Office Order dated 13.11.2019 issued by the Respondent.
Learned Senior Counsel for Petitioner submits that vide order dated 04.01.2011, with the approval of and on directions of the Ministry of Agriculture which is the parent Ministry of National Seeds Corporation Ltd., 5 posts of General Managers were directed to be upgraded from the pay scale of E-6 to E-7. Respondent in its 235th Meeting held on 14.12.2010 decided to upgrade pay scales from E-6 to E-7, with effect from 09.12.2010. Consequently, on the IDA pattern, Pay Scale of the Petitioner was upgraded to the E-7 Scale (Rs. 43200-66000). As a B-Category CPSE and consequent upon merger of another C-Category CPSE under the same Ministry and following its Pay and Allowances approved by the Board, the Respondent re-designated the post of General Manager as Senior General Manager with effect from 01.04.2014.
Learned Senior Counsel for Petitioner points out that in September 2016, the Petitioner was relieved by the Respondent to join as Managing Director in NERAMAC with effect from 03.10.2016. On 29.08.2019 Petitioner joined NAFED as Additional Managing Director and requested the Respondent herein to release his retiral benefits, such as Gratuity, Leave Encashment etc. Learned Senior Counsel submits that instead of releasing the Petitioner's retiral benefits, the Respondent issued an Office Order dated 13.11.2019 informing the Petitioner that the upgradation to E-7 Scale has been declared as illegal and instead of receiving the retiral benefits, the Petitioner would have to deposit the emoluments received by him in the upgraded scale. Finally another communication dated 13.01.2020 was sent to the Petitioner, referring to the Office Order dated 13.11.2019, whereby the Respondent admitted that retiral dues to the tune of Rs. 6,69,556/- were payable to the Petitioner from 30.09.2016 onwards but demanded Rs.9,28,143/- from the Petitioner, on the basis of the Office Order dated 13.11.2019.
Learned Senior Counsel contends that the Petitioner has discharged his duties assigned to him in the upgraded Pay Scale and thus the emoluments paid in the E-7 scale cannot be recovered.
Upgradation of Pay Scales, it is pointed out, was with the approval of Board of Directors and the concerned Ministry, which is evident from the order dated 04.01.2011. It is also contended that the employer-employee relationship between the Petitioner and the Respondent ceased to exist on 30.09.2016 when the Petitioner had left the Corporation and joined NERAMAC. It is submitted that the Respondent is thus liable to release the retiral benefits of the Petitioner forthwith and not seek any recovery. Learned Senior Counsel prays that the operation of the communication dated 13.01.2020 be stayed and no recovery should be made during the pendency of the present petition.
Issue notice.
Mr. Ghanshyam Joshi learned counsel accepts notice on behalf of the Respondent and seeks a period of six weeks to file Counter Affidavit.
Counter Affidavit be filed within six weeks. Rejoinder thereto, if any, be filed before the next date of hearing.
List on 06.11.2020.
Prima facie, I find force in the submission of Learned Senior Counsel for the Petitioner. The order dated 04.01.2011 by a plain reading shows that the upgradation of the Pay Scales was with the approval of the Board of Directors and the Ministry to the 5 posts of General Managers. In view of the said decision and approval of the Ministry, the Pay Scale of the Petitioner was upgraded and he continued to enjoy the said benefit for several years. Suddenly by the impugned communication, the Respondent is seeking to recover from the Petitioner an amount of Rs.9,28,143/- on account of re-fixation and after adjusting the amount of Gratuity and Leave Encashment payable to the Petitioner.
In view of the above, operation of the impugned communication dated 13.01.2020 and the Office Order dated 13.11.2019 shall remain stayed and no recovery shall be effected from the Petitioner till the next date of hearing.
JYOTI SINGH, J AUGUST 27, 2020 yg