No Provision For Deducting GST, Incentive Or Festival Advance From Employee's Retiral Dues: Allahabad High Court

The Allahabad High Court has observed that there is no provision for deducting "Prostsahan Agrim" (incentive advance), "Tyohar Agrim" (festival advance) and GST from the retiral dues of an employee of the U.P. State Employees Welfare Corporation.Expressing shock that such deductions were being made from the retiral dues of an employee, Justice Rohit Ranjan Agarwal observed,“This Court is shocked to hear the deduction which has been under the various heads by the opposite party towards the retiral dues payable to the applicant. There is no such provision for deducting "Prostsahan Agrim" and "Tyohar Agrim" as well as GST from the retiral dues of an employee of the Corporation.”Contempt applicants-employees approached the High Court against non-compliance of the order of the writ Court directing payment of retiral dues and arrears of wages to the employees. However, counsel for respondent corporation submitted that though retiral dues were paid, due to financial crunch, the Corporation was unable to pay the arrears of the salary. The Court noted that in earlier affidavits filed by the Corporation, it was stated that certain amounts were deducted towards “Prostsahan Agrim", "Tyohar Agrim" and GST from the retiral dues. Referring to the affidavit filed by the Executive Director, the Court observed that the amount of retiral dues paid and the outstanding salary dues were not mentioned, only the amounts deducted towards “Prostsahan Agrim", "Tyohar Agrim" and GST were mentioned. Giving one last opportunity to the Executive Director of the Corporation to clear the retiral dues for all its employees without aforesaid deductions, the Court observed“This Court finds that the Executive Director of the U.P. State Employees Welfare Corporation is only buying time and misleading the Court by not paying its employees their retiral dues and salary for which they are entitled.”The Court also directed the Principal Secretary, Food and Civil Supplies to investigate and file affidavit regarding actions taken against such officers. Case Title: Satish Kumar Verma v. Shri Kamta Prasad, Executive Director, U.P. State Employees Welfare CorporationClick Here To Read/Download Order

No Provision For Deducting GST, Incentive Or Festival Advance From Employee's Retiral Dues: Allahabad High Court

Upasna Agrawal

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