In Absence Of Any Statutory Provisions, Departmental Proceeding/Show Cause Notice Cannot Be Issued For Recovery Of Money After Retirement Of Employee: Allahabad HC
|The Allahabad High Court held departmental proceedings or show cause notices cannot be issued against a retired employee for recovery of money in the absence of any statutory provisions allowing it.
The Court clarified that in case an employee replies to a show cause notice issued by an employer, then it’s not open for the employer to issue another show cause notice at a very belated stage for same cause of action after no action was taken for a long time.
A Single Bench of Justice Neeraj Tiwari observed, “It is apparently clear that after retirement, in case of lack of provisions in Rules or Regulations, neither departmental proceeding nor any show cause notice can be issued for recovery of any amount. Present case, during the course of service, no inquiry has even been initiated against the petitioner fixing the liability.”
Advocate Anupam Kulshreshtha represented the petitioner, while CSC Devesh Vikram appeared for the respondents.
The petitioner, who was working as an Assistant Field Officer at a Government bank, had argued that disciplinary proceedings were not permissible to be initiated for recovery of any amount under the provisions of Uttar Pradesh Rajya Sahkari Bhumi Vikas Bank Employees Service Rules, 1976 (Rules) after the retirement of an employee.
On the other hand, the bank argued that the service of the petitioner was governed under the Uttar Pradesh Co-operative Society Employees Service Regulation, 1975 (Regulations).
However, the High Court pointed out that the bank could not demonstrate any provision under the Regulations which authorised the bank to initiate a departmental proceeding or issue a show cause notice to an employee after retirement.
“It is undisputed that in Rules, 1976 as well as Regulation, 1975, there is no provision for initiating any disciplinary proceeding or issuing show cause notice against the employee after retirement. This fact is also undisputed that against the petitioner, no inquiry has ever been instituted till his retirement,” the Court clarified.
The Court remarked, “Under Rules, 1976 and Regulation, 1975, there is no provision to issue show cause notice or initiate departmental proceeding after retirement, therefore, issuance of show cause notice in lack of provisions is bad after retirement. Further, first show cause notice was issued in the year 2014 and for the same cause of action, another show cause notice was issued in the year 2022, which is also not permissible.”
Consequently, the bank was directed to pay all the post-retirement dues to the petitioner such as earned leave encashment, security, etc., along with an interest @ 7% per annum.
Accordingly, the High Court allowed the petition.
Cause Title: Prem Kumar Tripathi v. The State Of Uttar Pradesh & Anr. (Neutral Citation: 2024:AHC:47778)
Appearance:
Petitioner: Advocates Anupam Kulshreshtha and Sanjay Mishra
Respondents: CSC Devesh Vikram and Chandra Bhan Gupta; Advocate Sanjai Singh