Supreme Court Allows State's Appeal in Retiral Benefits Case — Employee Who Joined Another Service Without Sanction Not Entitled to Pension. Abandonment of Service Disentitles Employee to Voluntary Retirement Benefits Under UP Fundamental Rules.

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Case Note & Summary

The case involves two appeals by the State of Uttar Pradesh against the judgment of the Allahabad High Court. The respondent, Dr. Sudarshana Chatterjee, was appointed as Lecturer (Anesthesia) at Motilal Nehru Medical College, Allahabad in 1982. In 2003, she sought a no-objection certificate (NOC) to apply for a post at Chhattisgarh Institute of Medical Sciences (CIMS), Bilaspur. She received an appointment letter from CIMS on 22.04.2004 and applied for leave without pay on 30.04.2004, but joined CIMS on 15.06.2004 before her leave was sanctioned. She later applied for earned leave, which was granted from 23.07.2004 to 22.08.2004, after which she did not resume duty with the State of UP. She continued working at CIMS, eventually retiring from there. In 2012, she sought retiral benefits from the State of UP, which were rejected on 01.04.2015 on the ground that she had joined CIMS without approval and without sanctioned leave. The High Court quashed this order and directed reconsideration. The State appealed to the Supreme Court. Meanwhile, the respondent filed a contempt petition, leading to a fresh rejection order on 04.01.2019, which the High Court again questioned, directing the Principal Secretary to appear personally. The Supreme Court allowed the State's appeals, holding that the respondent had abandoned her service by joining CIMS without leave or NOC, and thus was not entitled to retiral benefits from the State of UP. The court also set aside the High Court's direction for personal appearance of the officer, as it was contrary to legal principles. The appeals were allowed, and the orders of the High Court were set aside.

Headnote

A) Service Law - Retiral Benefits - Abandonment of Service - An employee who joins another service without obtaining leave or NOC from the employer abandons service and is not entitled to retiral benefits from the former employer - The court held that the respondent's conduct of joining CIMS without sanctioned leave and not resuming duty after leave period amounted to abandonment of service, disentitling her to pension and gratuity from the State of UP (Paras 3-6, 10).

B) Service Law - Voluntary Retirement - Acceptance by Appointing Authority - Under Rule 56 of the UP Fundamental Rules, notice of voluntary retirement does not take effect automatically; it requires acceptance by the appointing authority - The court held that mere submission of an application for voluntary retirement does not entitle the employee to retiral benefits if the application is not accepted (Paras 10, 14).

C) Contempt of Court - Personal Appearance of Officers - Improper Direction - The High Court's direction for personal appearance of the Principal Secretary to explain rejection of claim was improper and contrary to settled principles - The court held that summoning officers to court does not serve the purpose of administration of justice and set aside the direction (Paras 13, 15).

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Issue of Consideration

Whether an employee who joins another service without obtaining leave or NOC from the employer is entitled to retiral benefits from the former employer, and whether the High Court could direct personal appearance of a senior officer in contempt proceedings.

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Final Decision

The Supreme Court allowed both appeals, setting aside the High Court's judgment dated 24.08.2018 and the interim order dated 15.03.2019. The Court held that the respondent had abandoned her service and was not entitled to retiral benefits from the State of UP. The direction for personal appearance of the Principal Secretary was also set aside.

Law Points

  • Voluntary retirement requires acceptance by appointing authority
  • Abandonment of service disentitles retiral benefits
  • Leave cannot be claimed as a matter of right
  • No ex-post facto sanction for unauthorized absence
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Case Details

2019 LawText (SC) (12) 24

Civil Appeal No. 9300 of 2019 (Arising out of SLP(C) No.10087 of 2019) and Civil Appeal No. 9301 of 2019 (Arising out of SLP(C) No.10542 of 2019)

2019-12-10

R. Banumathi

Ms. Aishwarya Bhati, learned Senior counsel for the appellants

State of Uttar Pradesh and Others

Sudarshana Chatterjee

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Nature of Litigation

Civil appeals against High Court judgment directing reconsideration of retiral benefits and against interim order directing personal appearance of officer.

Remedy Sought

Appellants sought to set aside the High Court judgment and interim order; respondent sought retiral benefits from the State of UP.

Filing Reason

The State of UP challenged the High Court's order quashing the denial of retiral benefits and the direction for personal appearance of the Principal Secretary.

Previous Decisions

High Court quashed order dated 01.04.2015 and directed reconsideration; later, the State passed order dated 04.01.2019 rejecting claim, which was challenged in a fresh writ petition.

Issues

Whether the respondent is entitled to retiral benefits from the State of UP after joining another service without sanctioned leave or NOC. Whether the High Court could direct personal appearance of a senior officer to explain rejection of claim in contempt proceedings.

Submissions/Arguments

Appellants argued that the respondent abandoned service by joining CIMS without leave or NOC, and thus is not entitled to retiral benefits; voluntary retirement requires acceptance by appointing authority. Respondent argued that she repeatedly applied for leave and NOC, but no action was taken, and she should be deemed to have voluntarily retired.

Ratio Decidendi

An employee who joins another service without obtaining leave or NOC from the employer abandons service and is not entitled to retiral benefits. Voluntary retirement under Rule 56 requires acceptance by the appointing authority and does not take effect automatically. The High Court's direction for personal appearance of a senior officer in contempt proceedings is improper and contrary to settled principles.

Judgment Excerpts

The respondent accepted the post at CIMS without obtaining approval/NOC from the competent authority and without getting her leave sanctioned. Under Rule 56 as applicable in the State of UP, notice of voluntary retirement does not come into effect automatically on the expiry of the three months period. The practice of summoning officers to court is not proper and does not serve the purpose of administration of justice.

Procedural History

The respondent filed Writ-A No.65084 of 2015 challenging the order dated 01.04.2015 denying retiral benefits. The High Court allowed the writ on 24.08.2018, quashing the order and directing reconsideration. The State filed SLP(C) No.10087 of 2019 with a delay of 134 days. Meanwhile, the respondent filed contempt proceedings, leading to a fresh rejection order dated 04.01.2019. The respondent challenged this order in Writ-A No.3884 of 2019, and the High Court passed an interim order on 15.03.2019 directing personal appearance of the Principal Secretary. The State filed SLP(C) No.10542 of 2019 against this interim order. Both SLPs were converted into civil appeals and heard together.

Acts & Sections

  • Fundamental Rules of the Financial Handbook (Uttar Pradesh): Rule 73, Rule 67-68, Rule 56
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Supreme Court Supreme Court Allows State's Appeal in Retiral Benefits Case — Employee Who Joined Another Service Without Sanction Not Entitled to Pension. Abandonment of Service Disentitles Employee to Voluntary Retirement Benefits Under UP Fundamental Rules.
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