Bombay High Court Upholds Employee's Plea for Voluntary Retirement in MSRTC Medical Unfit Case by Quashing Denial Order. Medical Board Declared Assistant Traffic Superintendent Unfit for Duty, and Court Deemed Retirement from 1 November 2019, Directing Retiral Benefits by 31 December 2021.

High Court: Bombay High Court Bench: AURANGABAD In Favour of Prosecution
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Case Note & Summary

The matter arose from a writ petition before the Aurangabad Bench of the Bombay High Court challenging the order dated 31 December 2019 passed by the Divisional Controller, State Transport Office, Jalna, which denied the petitioner's request for voluntary retirement on medical grounds. The petitioner was employed as an Assistant Traffic Superintendent, Class-II-C with the Maharashtra State Road Transport Corporation (MSRTC). He was initially appointed as a Transport Controller on 25 May 1994 and promoted on 18 August 2017. After his promotion, he experienced health problems including uncontrolled diabetes, hypertension and occasional fits (neuropathy). The MSRTC had issued circulars dated 29 September 2017 and 5 April 2018 enabling medically unfit employees to seek voluntary retirement. The petitioner applied on 28 March 2019. The MSRTC referred him to a Medical Board, which declared him unfit for duty by a medical report signed on 14 and 15 October 2019. The Divisional Controller, Jalna, recommended his case on 17 October 2019. However, by the impugned letter dated 31 December 2019, the petitioner was informed that he was not eligible because he fell in the Officer (II-C) category and the circular did not apply to officers, only to workmen/employees. The petitioner argued that he had no intention to continue in service due to health and that denying voluntary retirement while also preventing him from reporting to duty from 1 January 2020 left him without salary or retirement benefits. The respondent MSRTC contended that voluntary retirement was not a matter of right, the health problems were not so severe as to prevent any duty, and that the medical unfitness did not mean the petitioner could not do light work. During the hearing, the court considered Section 20 of the Rights of Persons with Disabilities Act, 2016 and the earlier Section 47 of the 1995 Act regarding alternative employment, but the petitioner expressed inability to do any work, including light work. To test bona fides, the court had directed the petitioner on 18 November 2021 to file an affidavit stating that his family would not seek compassionate appointment. The petitioner filed an undertaking dated 24 November 2021 affirming that the voluntary retirement application was not to facilitate compassionate appointment and that his son/daughter/wife/legal representatives would not seek compassionate appointment. The court found no mala fide or ulterior motive. It held that compelling the petitioner to resign would deprive him of retiral benefits, and the MSRTC could not adopt such a harsh stand. The court noted the contradictory position: on one hand the petitioner was disallowed from reporting to duties from 1 January 2020, and on the other hand his voluntary retirement application was not entertained. Without laying down a precedent, the court quashed the impugned order. At the request of the petitioner, it deemed retirement effective from 1 November 2019, since the medical certificate was dated 15 October 2019. The court directed that retiral benefits and pensionary benefits be extended as expeditiously as possible, preferably on or before 31 December 2021. Rule was made absolute with no order as to costs.

Headnote

A) Service Law - Voluntary Retirement - Medically Unfit Employee - Not mentioned - The petitioner, an Assistant Traffic Superintendent Class-II-C with Maharashtra State Road Transport Corporation, was declared medically unfit by the Medical Board and his voluntary retirement application was recommended by the Divisional Controller, but the impugned order dated 31.12.2019 denied eligibility because the circular did not apply to officers. The court held that the employer cannot force an employee to continue in service and cannot prevent reporting for duty while simultaneously denying voluntary retirement, which would deprive the employee of retiral benefits. Held, the impugned order is quashed and the petitioner is deemed to have retired from 1.11.2019 with retiral benefits payable by 31.12.2021 (Paras 4-13).

B) Rights of Persons with Disabilities - Alternative Employment - Section 20 of the Rights of Persons with Disabilities Act, 2016 and Section 47 of the Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995 - The court considered alternative employment for the petitioner after he was declared unfit for duty. The petitioner submitted that he was unable to perform any other work including light work. The court did not compel acceptance of alternative employment and proceeded to allow voluntary retirement. Held, the right to alternative employment under disability law does not oblige an employee to accept it when the employee declares total inability to work (Para 8).

C) Service Law - Compassionate Appointment - Bona Fides - Not mentioned - To test whether the voluntary retirement application was aimed at facilitating compassionate appointment, the court directed an affidavit that family members would not seek compassionate appointment with MSRTC. The petitioner filed an undertaking dated 24.11.2021. The court found no mala fide or ulterior motive and allowed the petition without laying down a precedent that dependents would not be entitled to compassionate appointment. Held, a bona fide voluntary retirement application cannot be rejected based on speculative compassionate appointment motive (Paras 9-12).

D) Service Law - Deemed Retirement Date - Retiral Benefits - Not mentioned - At the petitioner's request, the court deemed retirement effective from 1.11.2019 because the medical certificate was dated 15.10.2019. The court directed that retiral and pensionary benefits be extended expeditiously, preferably by 31.12.2021. Held, retroactive deemed retirement from a date after medical unfitness is permissible where the denial order is quashed (Para 13).

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Issue of Consideration

Whether the MSRTC could deny voluntary retirement to an employee declared medically unfit by the Medical Board solely because the circular did not apply to officers; whether denying duties and retirement simultaneously violated service law; whether alternative employment under disability law was mandatory; and whether the petitioner's application was bona fide

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Final Decision

The writ petition was allowed in terms of prayer clause (C). The impugned order dated 31.12.2019 was quashed and set aside. The petitioner was deemed to have retired with effect from 1.11.2019. Retiral benefits and pensionary benefits as admissible in law were to be extended expeditiously, preferably on or before 31.12.2021. Rule was made absolute with no order as to costs.

Law Points

  • Voluntary retirement cannot be denied to an employee declared medically unfit by the Medical Board when the application is bona fide
  • employer cannot simultaneously prevent reporting to duty and refuse voluntary retirement
  • retiral benefits must not be denied by compelling resignation
  • alternative employment under disability law is optional
  • compassionate appointment concerns can be addressed by undertaking
  • deemed retirement can be made effective from a date after medical unfitness
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Case Details

2021 LawText (BOM) (11) 8

Writ Petition No.1309 of 2020

2021-11-26

Ravindra V. Ghuge, S.G. Mehare

Anjali Dube (Bajpai), M.A. Deshpande, D.S. Bagul, G.D. Jain

Sunil s/o Raghunath Deshpande

The State of Maharashtra; The General Manager (P & R), State Transport, Central Office, Mumbai; The Divisional Controller, M.S.R.T.C., Jalna; The Divisional Labour Officer, M.S.R.T.C. Jalna; Divisional Personal Officer, M.S.R.T.C., Jalna

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Nature of Litigation

Writ petition challenging the order dated 31.12.2019 passed by the Divisional Controller, State Transport Office, Jalna, denying voluntary retirement to an Assistant Traffic Superintendent declared medically unfit by the Medical Board.

Remedy Sought

Petitioner sought quashing of the impugned order dated 31.12.2019, direction to consider his case for voluntary retirement on medical unfitness under circulars dated 29.9.2017 and 5.4.2018, and interim relief restraining termination and directing salary and consequential benefits.

Filing Reason

The petitioner, promoted as Assistant Traffic Superintendent Class-II-C, suffered uncontrolled diabetes, hypertension, and occasional fits (Neuropathy), was declared unfit for duty by the Medical Board, applied for voluntary retirement, but the Divisional Controller denied eligibility by letter dated 31.12.2019 because the scheme did not apply to officers.

Previous Decisions

The Divisional Controller, Jalna by letter dated 17.10.2019 recommended the case for voluntary retirement to the General Manager (P & R). However, by letter dated 31.12.2019, the petitioner was informed he was not eligible because he fell in Officer (II-C) category and Circular dated 29.9.2017 did not apply to officers.

Issues

Whether the MSRTC could deny voluntary retirement to an employee declared medically unfit by the Medical Board merely because the circular did not apply to officers. Whether an employee can be prevented from reporting for duties and simultaneously denied voluntary retirement, leaving him without service or retirement benefits. Whether Section 20 of the Rights of Persons with Disabilities Act, 2016 or Section 47 of the 1995 Act requires the court to direct alternative employment when the employee declares inability to do any work. Whether the petitioner's application was bona fide and not aimed at securing compassionate appointment for family members.

Submissions/Arguments

The petitioner contended on specific instructions that considering his health issues he was not inclined to continue in employment; had there been no scheme for voluntary retirement, he would have been left with no option but to work or resign; there was no ulterior or oblique motive behind seeking voluntary retirement. The petitioner submitted that after the impugned letter was served, he was disallowed to report for duties with effect from 1.1.2020 and at the same time his application for voluntary retirement was not being entertained. The respondent MSRTC submitted that by letter dated 31.12.2019, the petitioner was informed he was not eligible for voluntary retirement because he fell in Officer (II-C) category and Circular dated 29.9.2017 did not apply to officers, being applicable only to workmen/employees. The respondent contended that seeking voluntary retirement was not a matter of right; the health issues were not such that he was physically and mentally incapable of performing any duty; the certificate of the Medical Board declared him unfit for duty but did not mean he was disabled from doing any light work.

Ratio Decidendi

An employer cannot force an employee who has been declared medically unfit by a Medical Board to continue in service, nor can the employer prevent the employee from reporting to duty and simultaneously deny voluntary retirement, thereby depriving the employee of retiral benefits. Once the court is satisfied about the bona fides of the employee and absence of mala fide intention, the denial order is liable to be quashed and retirement can be deemed effective from a date after medical unfitness. The availability of alternative employment under disability law does not compel the employee to accept it if the employee declares inability to perform any work.

Judgment Excerpts

the petitioner was informed that he was not eligible for voluntary retirement considering that he was falling in Officer (II-C) category and the Circular dated 29.9.2017 bearing No.33/2017 does not apply the scheme to the officers category compelling him to resign would take away all his retiral benefits and we do not find that the M.S.R.T.C. could be permitted to adopt such a harsh stand he was disallowed to report for duties with effect from 1.1.2020 and at the same time, his application for voluntary retirement was not being entertained without laying down a precedent and by concluding that in such a case the family members/dependents/legal representatives of such a candidate would not be entitled for compassionate appointment, we are allowing this petition in terms of prayer clause (C) his retirement be deemed to be made effective from 1.11.2019

Procedural History

The petitioner was appointed as a Transport Controller on 25.5.1994 and promoted as Assistant Traffic Superintendent, Class-II-C with effect from 18.8.2017. Subsequent to promotion, he noticed health issues like increase in sugar levels, hypertension and occasional fits. The MSRTC issued Circular No.15 of 2018 dated 5.4.2018 enabling medically unfit employees to apply for voluntary retirement in light of the earlier Circular dated 29.9.2017. The petitioner applied for voluntary retirement on 28.3.2019. The MSRTC referred the petitioner to the Medical Board, which declared him unfit for duty by medical report signed on 14.10.2019 and 15.10.2019. The Divisional Controller, Jalna addressed a letter dated 17.10.2019 to the General Manager (P & R), MSRTC recommending the case for voluntary retirement. By impugned letter dated 31.12.2019, the petitioner was informed that he was not eligible for voluntary retirement. The petitioner was disallowed to report for duties with effect from 1.1.2020. He filed Writ Petition No.1309 of 2020 challenging the denial. On 18.11.2021, the court directed the petitioner to file an affidavit that family members would not seek compassionate appointment. The petitioner filed an undertaking dated 24.11.2021. The court heard the matter finally and pronounced judgment on 26.11.2021.

Acts & Sections

  • Rights of Persons with Disabilities Act, 2016: Section 20
  • Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995: Section 47
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