Case Note & Summary
The petitioner, Sri H.S. Lakshmegowda, was a Deputy Manager in the Karnataka State Warehousing Corporation and retired on 30.09.2010. On 18.01.2011, the respondent-corporation ordered recovery of Rs.2,46,130/- from his terminal benefits citing shortage of storage materials during his tenure at Mandya in January 1999 and May to July 1999. The petitioner requested release of the withheld amount on 27.03.2011, and the corporation wrote to the Food Corporation of India to regularize the anomaly, but no action was taken. The petitioner filed a writ petition under Articles 226 and 227 of the Constitution of India seeking quashing of the recovery portion of the order and direction for release of the amount with interest. The court noted that the recovery was ordered without any show-cause notice or enquiry, violating principles of natural justice. The court held that the impugned order of recovery is unsustainable and quashed it, directing the respondent to release the withheld amount of Rs.2,46,130/- within three months from the date of receipt of the order.
Headnote
A) Service Law - Recovery from Terminal Benefits - Natural Justice - Recovery of amount from terminal benefits without issuing show-cause notice or conducting enquiry is violative of principles of natural justice - Held that the impugned order of recovery is unsustainable and quashed (Paras 4-5).
Issue of Consideration
Whether the recovery of Rs.2,46,130/- from the petitioner's terminal benefits without affording an opportunity of hearing is sustainable in law.
Final Decision
The writ petition is allowed. The impugned order dated 18.01.2011 (Annexure-A) insofar as it relates to recovery of Rs.2,46,130/- from the petitioner's terminal benefits is quashed. The respondent is directed to release the withheld amount of Rs.2,46,130/- within three months from the date of receipt of the order.
Law Points
- Principles of Natural Justice
- Recovery without hearing
- Quasi-judicial authority
- Show-cause notice
- Enquiry before recovery
Case Details
2015 LawText (KAR) (02) 18
Writ Petition No.34710/2012 (S-R)
H.J. Ananda, Sangamesh G. Patil
The Karnataka State Warehousing Corporation
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Nature of Litigation
Writ petition challenging recovery order from terminal benefits of a retired employee.
Remedy Sought
Quashing of the portion of order dated 18.01.2011 directing recovery of Rs.2,46,130/- and direction to release the withheld amount with 18% interest.
Filing Reason
The respondent-corporation ordered recovery of Rs.2,46,130/- from the petitioner's terminal benefits without any show-cause notice or enquiry, allegedly for shortage of storage materials during his tenure.
Previous Decisions
The respondent-corporation issued order dated 18.01.2011 (Annexure-A) for recovery. The petitioner made representations on 27.03.2011, 13.06.2011, and 10.08.2011, and the corporation wrote to Food Corporation of India on 03.06.2011 and 10.08.2011 to regularize the anomaly, but no further action was taken.
Issues
Whether the recovery of Rs.2,46,130/- from the petitioner's terminal benefits without affording an opportunity of hearing is sustainable in law.
Submissions/Arguments
The petitioner argued that the recovery order was passed without any show-cause notice or enquiry, violating principles of natural justice.
The respondent-corporation contended that the recovery was justified due to shortage of storage materials.
Ratio Decidendi
Recovery of amount from terminal benefits without issuing show-cause notice or conducting enquiry is violative of principles of natural justice and cannot be sustained.
Judgment Excerpts
The impugned order of recovery of Rs.2,46,130/- from the petitioner's terminal benefits is not sustainable for the reason that before ordering recovery, the respondent has not issued any show-cause notice nor conducted any enquiry.
Accordingly, the writ petition stands allowed.
Procedural History
The petitioner retired on 30.09.2010. On 18.01.2011, the respondent ordered recovery of Rs.2,46,130/- from terminal benefits. The petitioner made representations on 27.03.2011, 13.06.2011, and 10.08.2011. The respondent wrote to Food Corporation of India on 03.06.2011 and 10.08.2011. The petitioner filed Writ Petition No.34710/2012 on an unspecified date. The petition was heard and reserved for orders, and the court pronounced the order on 06.02.2015.
Acts & Sections
- Constitution of India: Articles 226, 227
