BINDESHWARI CHAUDHARY Vs. STATE OF BIHAR & ORS.

JUDGEMENT

(1.) This appeal is directed against judgment and order dated 20.05.2008, passed by High Court of Judicature at Patna, whereby Letters Patent Appeal No. 436 of 2000 was disposed of allowing respondent authorities to withhold 50% of gratuity and 50% of pension, of the appellant.

(2.) Brief facts of the case are that appellant who was posted as Executive Engineer with Irrigation Department of State of Bihar, in the District of Singhbhum, awarded a contract on 29.08.1989 to one M/s. D.K. Road Lines, for bed and slope lining of canal in Galudih. In terms of the contract, the contractor was required to furnish bank guarantee, and the same was submitted by him for an amount of Rs.23,61,500/-. In order to verify the genuineness of the bank guarantee furnished by the contractor, the appellant sent his Accounts Clerk to Punjab & Sindh Bank, Jamshedpur, with letter dated 29.08.1989 (Annexure-P1). In response to said letter, appellant received letter dated 01.09.1989 (Annexure-P-3) from Shri T.S. Gandhok, Branch Manager of the bank, confirming the bank guarantee. The appellant made payment of Rs.15,00,000/- on 02.09.1989 towards mobilization advance to the contractor. On 04.09.1989, Superintending Engineer, issued letter (Annexure P-4), directing the appellant not to make mobilization advance. But, subsequently said authority allowed the appellant to make second mobilization advance to the contractor vide its letter dated 27.10.1989, consequently the appellant released payment of Rs.8,60,000/- on 31.10.1989 towards second mobilization advance. After three months, the Superintending Engineer, vide letter dated 23.12.1989 (Annexure-P-5) approved the work done by M/s D.K. Road Lines assessing the work done at Rs.42,79,021/-. On 12.02.1990, the appellant made further payment of Rs.2.55 lacs.

(3.) Meanwhile, when new Manager took over the charge of Jamshedpur Branch of Punjab & Sindh Bank, issued letter dated 13.02.1990 (Annexure-P-7), asking the appellant to send photocopy of the bank guarantee in question. And vide letter dated 20.03.1990 (Annexure-P-8) the new Manager informed the appellant that no such bank guarantee has been issued by the bank. Appellant has pleaded that he received said letter on 10.04.1990, and by then the appellant had released further payment of Rs.7.33 lacs towards bill of the contractor. On 04.05.1990, bank cancelled its earlier communication dated 01.09.1989. The appellant finally released Rs.4.4 lacs towards current bill of the contractor, whereafter he was transferred on 11.06.1990 to Daltanganj. It appears that C.B.I. registered a case RC37(A)/91, Patna in pursuance to the fraudulent/forged bank guarantee furnished by the contractor.