Case Note & Summary
The petitioner, Mahendra Govindrao Gaikwad, a retired Sectional Engineer of Zilla Parishad, Dhule, filed a writ petition challenging the deduction of Rs.1,68,480/- from his gratuity amount after his superannuation on 30.11.2018. The deduction was made by the respondents (State of Maharashtra and Zilla Parishad authorities) without any departmental enquiry, show cause notice, or order of punishment. The petitioner had been granted an additional increment as a reward for credible service vide order dated 13.04.2007, which increased his basic pay. Subsequently, the State of Maharashtra issued a Government Resolution dated 24.08.2017 withdrawing such benefits. Relying on this GR, the respondents deducted the amount from the petitioner's gratuity. The petitioner contended that the deduction was illegal as no misconduct was alleged, no enquiry was conducted, and no opportunity of hearing was given. The respondents argued that the deduction was based on the GR and that the petitioner had given an undertaking to refund any excess payment. The court examined the facts and held that the deduction without any enquiry or show cause notice was violative of principles of natural justice. The court noted that the increment was granted as a reward for good service and was not a result of any misrepresentation or fraud by the petitioner. The court further observed that the respondents could not unilaterally recover the amount without affording the petitioner an opportunity of hearing. The court allowed the petition, quashed the impugned order dated 24.01.2019 to the extent of recovery, and directed the respondents to refund the deducted amount with interest at 6% per annum from the date of deduction till payment, within eight weeks.
Headnote
A) Service Law - Gratuity - Recovery Without Enquiry - Deduction from gratuity without any departmental enquiry or show cause notice is illegal and violative of principles of natural justice - Petitioner retired on 30.11.2018; employer deducted Rs.1,68,480/- from gratuity based on Government Resolution dated 24.08.2017 withdrawing an increment granted as reward in 2007 - No misconduct alleged, no enquiry held, no punishment order - Held that recovery without hearing is unsustainable (Paras 3-8).
Issue of Consideration
Whether the employer can deduct an amount from gratuity without holding any departmental enquiry or issuing any show cause notice, based on a subsequent Government Resolution withdrawing a benefit already granted.
Final Decision
Writ petition allowed. Impugned order dated 24.01.2019 quashed to the extent of recovery of Rs.1,68,480/-. Respondents directed to refund the amount with interest at 6% per annum from the date of deduction till payment, within eight weeks.
Law Points
- Natural Justice
- Recovery from Gratuity
- Increment as Reward
- No Enquiry
- No Punishment
- Government Resolution 24.08.2017
- Deduction Without Hearing
