Jharkhand High Court
Kanhaiya Prasad vs Jharkhand State Food & Civil Supplies ... on 20 August, 2020
Author: Sanjay Kumar Dwivedi
Bench: Sanjay Kumar Dwivedi
1 W.P. (S) No. 1565 of 2017
IN THE HIGH COURT OF JHARKHAND AT RANCHI
W.P. (S) No. 1565 of 2017
With
I.A. No. 2761 of 2018
Kanhaiya Prasad, son of Late Banarsi Lall, resident of House No. E-07,
Sadan Mohally- Sadhnapuri, Gardanibagh, P.O.- G.P.O., P.S. Gardanibagh,
District- Patna (Bihar) ... Petitioner
-Versus-
1. Jharkhand State Food & Civil Supplies Corporation Ltd., a unit of
Government of Jharkhand, having its head office at Project Bhawan,
Dhurwa, P.O. & P.S. Dhurwa, District- Ranchi and also having office at
Agriculture Marketing Yard, Itki Road, Hehal, P.O.- Hehal, P.S.
Sukhdeonagar, District- Ranchi through its Chairman-cum Managing
Director
2. Chairman-cum-Managing Director, Jharkhand State Food & Civil Supplies
Corporation Ltd., Project Bhawan, Dhurwa, P.O. & P.S. Dhurwa, District-
Ranchi and also having office at Agriculture Marketing Yard, Itki Road,
Hehal, P.O.- Hehal, P.S. Sukhdeonagar, District- Ranchi
3. District Manager, Jharkhand State Food & Civil Supplies Corporation Limited,
Dhanbad, P.O., P.S. & District- Dhanbad
4. District Manager, Jharkhand State Food & Civil Supplies Corporation Limited,
Gumla, P.O., P.S. & District- Gumla
5. Bihar State Food & Civil Supplies Corporation Limited, a unit of Government
of Bihar, Khadya Bhawan, Daroga Rai Path No.2, R- Block, P.O. G.P.O., P.S.
Sachiwalay, District- Patna (Bihar); through its Managing Director
6. Managing Director, Bihar State Food & Civil Supplies Corporation Limited,
a unit of Government of Bihar, Khadya Bhawan, Daroga Rai Path No.2,
R- Block, P.O. G.P.O., P.S. Sachiwalay, District- Patna (Bihar)
7. District Manager, Bihar State Food & Civil Supplies Corporation Limited,
Line Bazar, Purnia, P.O. Purnia, P.S. Khajanchi Hat, District- Purnia (Bihar)
8. Employees Provident Fund Organization, Regional Office, Bhagirathi
Complex, Near Circuit House, Karamtoli, P.O. Ranchi, P.S. Lalpur, District-
Ranchi through Regional Provident Fund Commissioner
9. Regional Provident Fund Commissioner, Employees Provident Fund
Organization, Regional Office, Bhagirathi Complex, Near Circuit House,
Karamtoli, P.O. Ranchi, P.S. Lalpur, District- Ranchi ... Respondents
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CORAM: HON'BLE MR. JUSTICE SANJAY KUMAR DWIVEDI
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For the Petitioner : Mr. Pandey Neeraj Rai, Advocate
Mr. Rohit Ranjan Sinha, Advocate
Mr. Akchansh Kishore, Advocate
Mr. Rohan Ranjan, Advocate
For Respondent Nos. 1 to 4 : Dr. Ashok Kumar Singh, Advocate
For Respondent Nos. 5 to 7 : Mr. Jitendra Shankar Singh, Advocate
For Respondent Nos. 8 & 9 : Mr. Sumit Prakash, Advocate
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2 W.P. (S) No. 1565 of 2017
07/Dated: 20th August, 2020
1. Heard Mr. Pandey Neeraj Rai, learned counsel for the petitioner, Dr. Ashok Kumar Singh, learned counsel for respondent nos. 1 to 4, Mr. Jitendra Shankar Singh, learned counsel for respondent nos. 5 to 7 and Mr. Sumit Prakash, learned counsel for respondent nos. 8 and 9.
2. This writ petition has been heard through Video Conferencing in view of the guidelines of the High Court taking into account the situation arising due to COVID-19 pandemic. None of the parties have complained about any technical snag of audio-video and with their consent this matter has been heard on merit.
3. The petitioner has preferred this writ petition for direction upon the respondents to pay the post retiral dues of the petitioner under the heads as specified in paragraph 8 of this writ petition with interest @ 18% per annum.
4. Mr. Pandey Neeraj Rai, learned counsel for the petitioner draws attention of this Court to paragraph 8 of this writ petition, wherein, dues have been described. He submits that so far as Leave encashment and Gratuity are concerned, that have already been paid to the petitioner. The pension has already been finalized. The amount of Provident Fund to the extent of Rs.10,15,350/- has already been paid to the petitioner. He further submits that the petitioner has not yet received the amount of arrears in the form of different of pay for the period from 01.01.1997 to 31.12.2005 pursuant to the 5 th pay revision, arrears in the form of different of pay for the period from 01.04.2007 to 31.07.2011 pursuant to the 6th pay revision, amount of Group Insurance as deducted regularly from the salary, salary and allowances of 6 months i.e. for the period between September 2010 to December 2010 and April to May 2011 and unpaid amount of departmental transportation and handling charges, pertaining to the year 2006 and payment of Provident Fund deducted from the 3 W.P. (S) No. 1565 of 2017 salary of the petitioner while posted in the districts Siwan and Nawada. He further submits that the petitioner was earlier appointed in the Bihar State Food & Civil Supplies Corporation Limited and after bifurcation of the State of Bihar in the year 2000, the petitioner was transferred to Jharkhand State Food & Civil Supplies Corporation Limited. The petitioner has retired on 31.07.2011. He also submits that in spite of several representations, part of the aforesaid dues, which have been recorded herein above, has not been released in favour of the petitioner. He further submits that the petitioner is suffering from cancer and he is in dire need of the amount, but the said amount has not yet been paid to the petitioner. He further submits that the petitioner is also entitled for interest as the petitioner has been harassed a lot. He relied upon the judgment rendered by the Hon'ble Supreme Court in the case of State of Kerala v. M. Padmanabhan Nair reported in (1985) 1 SCC 429.
Paragraphs 2 and 4 of the said judgment are quoted herein below:
"2. Usually the delay occurs by reason of non-production of the L.P.C. (last pay certificate) and the N.L.C. (no liability certificate) from the concerned Departments but both these documents pertain to matters, records whereof would be with the concerned Government Departments. Since the date of retirement of every Government servant is very much known in advance we fail to appreciate why the process of collecting the requisite information and issuance of these two documents should not be completed at least a week before the date of retirement so that the payment of gratuity amount could be made to the Government servant on the date he retires or on the following day and pension at the expiry of the following month. The necessity for prompt payment of the retirement dues to a Government servant immediately after his retirement cannot be over-emphasised and it would not be unreasonable to direct that the liability to pay penal interest on these dues at the current market rate should commence at the expiry of two months from the date of retirement.
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4. Unfortunately such claim for interest that was allowed in respondent's favour by the District Court and confirmed by the High Court was at the rate of 6 per cent per annum though interest at 12 per cent had been claimed by the respondent in his suit. However, since the respondent acquiesced in his claim being decreed at 6 per cent by not preferring any cross-objections in the High Court it would not be proper for us to enhance the rate to 12 per cent per annum which we were otherwise inclined to grant."4 W.P. (S) No. 1565 of 2017
He further relied upon the judgment rendered by the Hon'ble Supreme Court in the case of D.D. Tewari v. Uttar Haryana Bijli Vitran Nigam Ltd., reported in (2014) 8 SCC 894.
Paragraphs 4 and 6 of the said judgment are quoted herein below:
"4. The learned Single Judge has allowed the writ petition vide order dated 25-8-2010, after setting aside the action of the respondents in withholding the amount of gratuity and directing the respondents to release the withheld amount of gratuity within three months without awarding interest as claimed by the appellant. The High Court has adverted to the judgments of this Court particularly, in State of Kerala v. M. Padmanabhan Nair, wherein this Court reiterated its earlier view holding that:
"1. [the] pension and gratuity are no longer any bounty to be distributed by the Government to its employees on their retirement but have become, under the decisions of this Court, valuable rights and property in their hands and any culpable delay in settlement and disbursement thereof must be visited with the penalty of payment of interest at the current market rate till actual payment [to the employees]."
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6. It is an undisputed fact that the appellant retired from service on attaining the age of superannuation on 31-10-2006 and the order of the learned Single Judge after adverting to the relevant facts and the legal position has given a direction to the respondent employer to pay the erroneously withheld pensionary benefits and the gratuity amount to the legal representatives of the deceased employee without awarding interest for which the appellant is legally entitled, therefore, this Court has to exercise its appellate jurisdiction as there is a miscarriage of justice in denying the interest to be paid or payable by the employer from the date of the entitlement of the deceased employee till the date of payment as per the aforesaid legal principle laid down by this Court in the judgment referred to supra. We have to award interest at the rate of 9% per annum both on the amount of pension due and the gratuity amount which are to be paid by the respondent."
He further relied upon the judgment rendered by the Hon'ble Patna High Court in the case of Mostt. Rukmini Devi v. State of Bihar, reported in 1996 (2) PLJR 348.
Paragraphs 7, 14 and 17 of the said judgment are quoted herein below:
"7. The Supreme Court in the case of State of Kerala and others v. M.Padnabhan Nair, reported in A.I.R. 1985 S.C. 356, realising the agony and harassment of the retired employees at the fag end of their life observed as follows :
"Usually the delay occurs by reason of non-production of the L.P.C. (Last Pay Certificate) and the N.L.C. (No Liability 5 W.P. (S) No. 1565 of 2017 Certificate) from the concerned Departments but both these documents pertain to matters, records whereof would be with the concerned Government Departments. Since the date of retirement of every Government servant is very much known in advance we fail to appreciate why the process of collecting the requisite information and issuance of these two documents should not be completed atleast a week before the date of retirement so that the payment of gratuity amount could be made to the Government servant on the date he retires or on the following day and pension at the expiry of the following month. The necessity for prompt payment of the retirement dues to a Government servant immediately after his retirement cannot be over-emphasised and it would not be unreasonable to direct that the liability to pay penal interest on these dues at the current market rate should commerce at the expiry of two months from the date of retirement."
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14. Having regard to the aforementioned facts and circumstances, as also considering the large number of pendency of cases in regard to retirement benefit matters in this Court. I am constrained to pass a general order that the concerned Government servants or their legal heirs and representatives should raise their claims afresh by filing representation. in which they should give full details of their claim and also full address for communication henceforth before the concerned Heads of Departments, who shall grant a receipt in token thereof. The Heads of the respective departments shall get the entire claim filed before him examined through various concerned authorities including Director, Provident Fund/District Provident Fund Officers and finally dispose them of by a reasoned order dealing with each and every claim separately and shall also issue necessary sanction order/authority slip for payment of admitted dues with statutory interest as well as the interest as per various, Government circulars/decisions taken in that regard within a period of two months of the receipt of the claim.
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17. It is further made clear that non-compliance of any part of the aforesaid directions by any of the concerned authorities would constitute contempt of this court and will be seriously viewed. This Court may also consider to award heavy penal interest and costs besides imposition of punishment in the Contempt proceeding against the concerned Heads of Departments/Accountant-General, Bihar, which shall be realised from their pocket."
5. Dr. Ashok Kumar Singh, learned counsel for respondent nos. 1 to 4 submits that the Jharkhand State Food & Civil Supply Corporation Ltd. came into existence on 01.02.2011 and became operation w.e.f. 01.02.2011. By way of referring Resolution dated 04.02.2016, annexed with the counter affidavit filed by respondent nos. 1 to 4, he submits that the Jharkhand State Food & Civil Corporation Ltd. is liable for payment of retiral dues. He further submits that he 6 W.P. (S) No. 1565 of 2017 accepts this position that the Jharkhand State Food & Civil Supply Corporation Ltd. will pay all the retiral dues to the petitioner, but the dues which are of the period before bifurcation of the State of Bihar, such amounts are required to be paid to the petitioner by the Bihar State Food & Civil Supply Corporation Ltd. He further submits that the petitioner may be directed to file a fresh representation and the admitted retiral dues shall be released in favour of the petitioner within a period of 15 days from the date of receipt/production of such representation.
6. Mr. Jitendra Shankar Singh, learned counsel for respondent nos. 5 to 7 draws attention of this Court to Annexure-5/1 of the writ petition and submits that after bifurcation of the State of Bihar, the assets and liabilities of the Bihar State Food & Civil Supply Corporation Ltd. are with Jharkhand State Food & Civil Supply Corporation Ltd. on "As is where is" basis. He further submits that on the basis of this document, now there is liability upon the Jharkhand State Food & Civil Supply Corporation Ltd. to pay all the dues to the petitioner.
7. At this stage, Mr. Pandey Neeraj Rai, learned counsel for the petitioner draws attention of the Court to certain annexures, which have been filed by the petitioner by way of rejoinder to the counter affidavit, wherein, it has been admitted by the Bihar State Food & Civil Supplies Corporation Ltd. at Annexure-15 series that certain amounts are due for payment to the petitioner. He further submits that in the letter dated 12.08.2016 issued by the District Manager of the Jharkhand State Food & Civil Supplies Corporation Ltd., Gumla, it is stated that the amount has not been paid to the petitioner as sanctioned has not been received as yet.
8. The Court has given thoughtful consideration of the submission of the learned counsel for the parties. It appears from Annexure-5/1 of the writ petition that the assets and liabilities have already been bifurcated between the two 7 W.P. (S) No. 1565 of 2017 Corporations w.e.f. 14.11.2000 itself, wherein, amount has also been described that what has to be paid by the Jharkhand State Food & Civil Supplies Corporation Ltd. as well as by the Bihar State Food & Civil Supplies Corporation Ltd. on "As is where is" basis. The amount in question has been admitted by the Bihar State Food & Civil Supplies Corporation Ltd. and to some extent by the Jharkhand State Food & Civil Supplies Corporation Ltd. at page 63 of the rejoinder of the counter affidavit. It has been admitted by the learned counsel for respondent nos. 1 to 4 that so far as retiral dues are concerned, the Jharkhand State Food & Civil Supplies Corporation Ltd. is liable to pay the same. Thus, the only dues, which are required to be released in favour of the petitioner, are the arrears of 5th pay revision for the period from 01.01.1997 to 31.12.2005, which will be paid by the Bihar State Food & Civil Supply Corporation Ltd. for the period prior to 14.11.2000 i.e. before bifurcation of the State of Bihar and for the remaining period, the Jharkhand State Food & Civil Supplies Corporation Ltd. is liable to make the payment. So far as the arrears of 6th pay revision for the period from 01.04.2007 to 31.07.2011 is concerned, the payment will be done by the Jharkhand State Food & Civil Supplies Corporation Ltd. The concluding part of the Resolution dated 04.02.2016 clearly suggests that the Jharkhand State Food & Civil Supplies Corporation Ltd. is liable to make payment of retiral dues etc. w.e.f. 14.11.2000. In that view of the matter, the petitioner cannot be allowed to suffer for non-payment of certain dues, which according to the learned counsel for respondent nos. 1 to 4 is the liability of the Bihar State Food & Civil Supplies Corporation Ltd. In that view of the matter, the Jharkhand State Food & Civil Supplies Corporation Ltd. is directed to release all the admitted dues, as stated herein above in favour of the petitioner within a period of four weeks from the date of receipt/production of a copy of this order as the Court has taken 8 W.P. (S) No. 1565 of 2017 note of the fact that the assets and liabilities have already been bifurcated by Annexure-5/1, wherein, it is admitted that the retiral dues w.e.f. 14.11.2000 are required to be released by the Jharkhand State Food & Civil Supplies Corporation Ltd. It is open for the Jharkhand State Food & Civil Supplies Corporation Ltd. to reconciliate the claim if they think that it is required to be paid by the Bihar State Food & Civil Supplies Corporation Ltd., but no resistance for justification will be entertained by the Court for non-payment of dues to the employee in question.
9. In this case, the Court has to consider interest part also as the petitioner has been harassed a lot in fighting of two Corporations. The petitioner has been compelled to run pillar to post. The retiral benefits of a retired person is the only assets, which is a property in light of Article 300-A of the Constitution of India. Had this amount been released in time, the petitioner would have been in a position to deposit it in an appropriate scheme on his account and the petitioner could have been in a position to receive some interest. In that view of the matter, the Court finds that this is a fit case for granting interest and in light of the aforesaid judgments reported in State of Kerala v. M. Padmanabhan Nair, D.D. Tewari v. Uttar Haryana Bijli Vitran Nigam Ltd. and Mostt. Rukmini Devi v. State of Bihar (supra), the petitioner shall be entitled to receive interest on the due amount @ 6% per annum.
10. In view of the aforesaid terms, this writ petition stands allowed and disposed of.
11. Accordingly, I.A. No. 2761 of 2018 also stands disposed of.
(Sanjay Kumar Dwivedi, J.) Ajay/