L. RANGA RAO Vs. GIRIJAN CO

JUDGEMENT

(1.) This petition is filed for a writ of Mandamus declaring the show cause notice dated 14.11.2005 of the 2nd respondent as illegal and arbitrary and consequently to set aside the same and further direct the respondents to pay the terminal benefits i.e., earned leave encashment and gratuity together with interest @ 18% p.a.

(2.) The case of the petitioner is that he was initially appointed as Junior Assistant in the year 1969 in the 1st respondent-Corporation and later promoted as Senior Assistant in the year 1977. He attained superannuation on 31.05.2005 and consequently, the respondents relieved the petitioner from service from the said date. While so, on 04.06.2005, the petitioner received a notice dated 04.06.2005 wherein it is alleged that while the petitioner was working as Junior Assistant at Arku Valley during 1990 to 1997 certain deficits occurred in respect of the stocks dealt by the petitioner and he is required to pay a sum of Rs.1,69,863.45 Ps. To the said notice the petitioner submitted a detailed explanation on 22.06.2005 disputing the allegations and also stating that the allegations are vague and without any basis and that as per the proceedings of the 1st respondent dated 03.10.1996, adjustments were allowed by the corporation in respect of the very same deficits i.e., the deficits were within the allowable margin. The petitioner also brought to the notice of the respondents that the Corporation does not have complete record and also stated that the action of the respondents in trying to recover the alleged deficits pertaining to the old period after his retirement is illegal and the said claim of the respondents is also time barred. But, the 2nd respondent without considering the same, again issued show cause notice dated 29.07.2005 by revising the deficit amount to Rs.2,69,312.45 Ps. and required the petitioner to submit explanation. Petitioner again submitted explanation on 14.11.2005 and thereafter, the 2nd respondent once again issued show cause notice dated 14.11.2005 mentioning that an amount of Rs.3,49,821.23 Ps was found to be inadmissible deficit, which was allegedly caused by the petitioner during the years from 1990-91 to 1994-1995, for which the petitioner once again submitted explanation dated 27.11.2005 stating that there is no basis for the claim. Since the respondents are trying to recover the said alleged deficit amounts mentioned in the show cause notice from the petitioner's terminal benefits, the petitioner filed the present writ petition challenging the final show cause notice dated 14.11.2005.

(3.) Respondents filed counter stating that the writ petition does not lie against a show cause notice. It is also stated that even before retirement from service, proceedings were initiated against the petitioner for recovery of huge deficits for the periods from 1990-1991 to 1996-1997, amounting to Rs.10,62,557.30 and that a notice was issued on 22.09.2004, 10.12.2004, 12.01.2005 and a final notice on 24.05.2005, asking the petitioner to appear before AR/Auditor on 27.05.2005 to get the defects rectified. Petitioner himself declared the deficits caused by him and submitted write off proposals to a tune of Rs.5,65,799.60 Ps. claiming admissible driage in terms of RCS approved norms and that considering the same, about Rs.4,14,168.55 Ps. were written off and inadmissible deficits to a tune of Rs.1,69,863.45 Ps. calculated at sale price/cost price whichever is high were arrived and the petitioner was issued with a notice on 04.06.2005 and responding to the same the petitioner filed explanation on 22.06.2005. After considering the explanation letter dated 04.07.2005 was communicated requesting the petitioner to remit the said amount which was not challenged by him and on this ground alone the writ petition is liable to be dismissed. It is also stated that subsequently, considering the proposals in respect of MFP deficits to a tune of Rs.1,09,128.80 Ps. from the year 1992-1993 after following due procedure in vogue admissible portion of deficits to a tune of Rs.17,273.46 ps., were written off and inadmissible deficits to a tune of Rs.99,449.00 calculated at sale price/cost price which ever is high were arrived and as such a revised show cause notice dated 29.07.2005 was issued to the petitioner. While the matter stood thus, further dues were ascertained and an amount of Rs.6,458.78 ps. was found due for recovery which is to be recovered from the petitioner towards balance instalments besides an amount of Rs.74,050.00 was also found as audit deficit in FAR 1994-1995 which amounts were not allowed by the Auditor. Hence a revised show cause notice was issued on 14.11.2005 to the petitioner as to why the said amount of Rs.3,49,821.23 ps. towards inadmissible deficits, audit deficits and other dues shall not be recovered from him and requested him to submit explanation on or before 30.11.2005. Responding to the same, the petitioner submitted an application on 27.11.2005, seeking to produce certain records and without waiting for the order to be passed pursuant to the show cause notice dated 14.11.2005, the petitioner filed the present writ petition. The respondent finally sought for dismissal of the writ petition.