STATE OF ORISSA Vs. V V APPARAO

JUDGEMENT

(1.) THIS is an appeal from the judgment of the Additional Subordinate Judge, berhampur decreeing the respondent-Plaintiff's suit for recovery of the balance of the Provident Fund amount standing to his credit with appellant-defendant.

(2.) THE respondent was a servant of Ganjam District Board and retired on 15th february, 1955. He was a subscriber to the Contribuory Provident Fund of the District board and as soon as he retired he requested that the entire sum standing to his credit may be paid to him. Part payment of Rs. 14365/- was made to him on 23 Nov. 1955, and thereafter on receipt of frequent reminders the Special Officer, district Board in his proceedings dated 15th May 1957 (Ext. J) a copy of which was communicated to him ordered as follows :

(3.) MR. H. G. Panda for the appellant could hardly give any convincing reason in support of this appeal. On the statement of the District Board itself the amount is due to the respondent being the balance standing to his credit in his Provident fund Account. It was transferred to his Deposit account by the proceedings of the special Officer of the iistrict Board. Ext. J dated 25-5-57 but till now nothing further has been done. The President Funds Act 1925 had been extended to Provident Funds under the control of local authority by appropriate notifications under Section 8 of the Act. There can therefore be no doubt that the Provident Fund ac-counts maintained by the District Board of Ganjam will also be governed by the provisions of the Act, the Madias Government also made rules, known as the Local Boards Provident fund Rules under Section 71 (1) (g) and Section 199 (2) (a) of the Madras Local boards Act, 1920, for the purpose of administering such funds. In the meantime the Orissa legislature passed another Act known as the Orissa Local Funds Audit act 1948 (Orissa Act V of 1948) mainly with a view to unify the laws relating to audit of local funds in the State of Orissa and to provide for a uniform procedure for the audit of local funds. This Act was made applicable to all the District Boards including the Ganjam District Board by notification No. 5339 L. S. G. dated the 13th May 1952. In consequence of this notification the audit of funds of a District board can be made only under the provisions of that Act notwithstanding any provision to the contrary contained in any other Act or Rule. The Orissa Local funds Audit Act lays down the procedure to be followed whenever any sum is held due to the District Board either on account of negligence or dishonesty on the part of any of its employees. Section 9 says that on receipt of the audit report the Examiner of Local Fund accounts may, after giving an opportunity to the aggrieved person to show cause and holding such enquiry as may be necessary, issue an order of surcharge on the person responsible for the loss to the District Board, and certify the amount as due from him. As soon as such a certificate is issued the amount can be realised as a public demand from the person concerned. There is a right of appeal under Section 11 of the Act, to a superior authority against the order of the Examinee of Local funds Accounts. If therefore the District Board wanted to recoup from the respondent any amount alleged to be due from him to the District Board, during his service either due to his negligence or dishonesty or any other reason, the appropriate enquiry should have been made under the provisions of the aforesaid act and the amount should have been certified. But the witness for the District Board (D. W. 2) who was the District Engineer during the relevant period frankly admitted that no final order of surcharge has yet been passed against the respondent by the Examiner of Local Funds Examiner.