DHARMARAJ SAHU Vs. STATE OF ORISSA

JUDGEMENT

(1.) ADMINISTRATIVE MEMBER Facts of this O.A., bereft of unnecessary details, are that the applicant retired as Assistant Auditor General on 30.6.2001 while he was posted, at Puri. During his service career he had been deputed to the Cuttack Urban Co -operative Bank from 1994 to 1996. As per statement of account for year ending 31.3.2001 supplied by the Accountant General, Orissa, an amount of Rs. 79,190/ - was shown at his credit, (Annexure -1). On retirement, the applicant applied for final payment of balance G.P.F. amount. Despite representations, the A.G., Orissa, did not take adequate steps for releasing his final payment of G.P.F. He further submits that during April, 2002, the Accountant General, Orissa, issued an authorityship indicating an amount of Rs. 12,500/ - only towards his final G.P.F. payment though he had a sum of Rs. 79,190/ - in his G.P.F. account. He submitted further representation (Annexure -5), in the matter without any avail. Finally, the Accountant General, Orissa, intimated to him in letter did, 26.8.2004 (Annexure -6), that he is only eligible for the missing credit and cannot be paid interest for deposits made by him during March, 1996 and February, 1997. In response, he filed a further representation (Annexure -7). He now submits that the action of A.G., Orissa, is in violation of 2nd proviso of Rule 14(4) of the G.P.F. Orissa, Rules, which prescribes procedure for granting interest to the subscriber while he is on deputation to a corporate body controlled by the Government and when there is delay in drawal of pay or leave salary and allowance of a subscriber, interest shall be payable from the date for which pay or leave salary is to be drawn irrespective of the month in which it is actually drawn and in his case deposits made in March, 1996 and Feb. 1997 have to be dealt with accordingly. He further states that as the statement issued by Respondent No.2 shows GPF accumulation of Rs. 79,190/ - the Accountant General cannot conclude that the applicant is entitled to Rs. 12,500/ - only. He further submits that as per Rule 13(2) of the aforesaid GPF (Orissa), Rules, when the applicant was on deputation to a Govt. or Government controlled Corporation, such subscription should be recovered and forwarded to the Accounts Officer, and hence Rule 13 and 14 taken together imply, that he shall be entitled to interest on his deposits with the Accountant General, Orissa. In this O.A., he has thus prayed for directing the A.G., Orissa, to issue final payment slip of G.P.F. with his deposits of Rs.79, 190/ -alongwithhis interest on his deposits.

(2.) COUNTER did. 17.2.2009 has been filed by. A.G., Orissa submitting, that the applicant was on deputation to the Urban Cooperative Bank, Cuttack, from July, 1994 to October, 1996. As per proviso to Sub -rule (2) of Rule 13 of the G.P.F. (Orissa) Rules, the subscription of subscribers on deputation to Corporate bodies owned or controlled by Govt. of Orissa shall be recovered and forwarded to the Accounts Officer, and as per proviso to Rule 11 (1)(b) of the said Rules and monthly subscription shall be fixed at the rate of not less than 10% of the emoluments and not more than his total emoluments. Further Sub -rule (3) of the said Rule also provides that the subscriber shall intimate fixation of the monthly subscription to his authenticities each year. In the case of the applicant, he joined the Cooperative Bank in July, 1994 but no recoveries towards GPF account was made for the period from August, 1994 to June, 1995 as per the aforesaid rules. The applicant's subscription for the period from July, 1995 to October, 1996 at the rate of Rs. 300/ - per month has been recovered and duly accounted for. The applicant had further deposited three lump sum amount i.e. Rs. 22,500/ - and Rs. 31,500/ - in March 96 and Rs. 40,000/ - in February, 1997, totally Rs. 94,000/ - through Treasury Challan which were also accounted for in his GPF and interest on the lumpsum deposits were allowed till final payment. However, as nature of these lumpsum deposits were not known, clarifications were sought, from the D.D.O. and it was finally intimated that the said amounts were deposited by the applicant towards less recovery of G.P.F. subscription by the foreign body and his arrear EDA. It is thus stated that as such lumpsum subscriptions were contrary to the Finance Department Notification No. 15155(35)/F dtd. 31.10.1950, the same were treated as unauthorised -and irregular and interest wrongly allowed was deducted from his balance at the time of his final payment. Reference is also made to Govt. of India, Ministry of Finance Memorandum No. F 25(4) -F -V/50 dtd. 28th, July, 1950 and Finance Department Order No. 15155 (35) -F dtd. 31st October, 1950, read with 5504/F dtd. 31st March, 1951. Dy. Fd. 1.10.307 in support of their stand. It is further added that information about monthly subscription was neither given by the applicant while on deputation to the foreign body as per Rule 11 (1) of the GPF (Orissa) Rules, nor such corporate body recovered such amount and forwarded such amount to the Accounts Officer as per proviso to Rule 13(2) strictly. Hence interest cannot be paid on such unauthorised deposits, particularly as amounts more than 10% of the salary of the applicant have been deposited during 1995 and 1996. It is further stated that annual accounts statements issued each year are only provisional figures subject to correction after adjustment of missing credits and debits and hence annual accounts statement for March, 2001 showing an amount Rs. 79,190/ - cannot be final and the exact figure as such amounts included unauthorised interest of Rs. 78771/ -. It is further stated that EDA is directly paid to the employer and cannot be deposited in the GPF for drawing interest on the same. It is also submitted that if the corporate body would have received and deposited such arrear amount due, instead of the applicant depositing the same directly, then perhaps interest could 'have been allowed on such amount. Hence it is stated that the applicant, has been correctly allowed Rs. 12,480/ - and Rs. 8,175/ - in two instalments.

(3.) LEARNED counsel for the applicant submits that as per Rule 13 of the G.P.F. (Orissa) Rules, the applicant deposited lumpsum amounts for the period for which recoveries had not been made by the Urban Cooperative Bank, Cuttack. On receiving such deposits, the A.G., Orissa, acknowledged the deposits and accounted for the same in the statement of accounts issued at the end of the year particularly the statement of account issued for March 2001 (Annexure -1). He submits that no objection regarding any such direct or excess deposit was raised by the A.G., Orissa, at any time till A.G., Orissa Letter No. 972 dated 26.8.2004 (Annexure 6). He thus states that payment of GPF being a contractual obligation of the A.G., Orissa, and as no objection was raised in time to deposing the aforesaid amounts in good faith by the applicant during his posting to the Urban Cooperative Bank, Cuttack, the A.G., Orissa, is estopped from raising such objection at such belated stage.