No Show Cause Notice/Departmental Proceeding Can Be Initiated Against Retired Employee In Absence Of Rules/Regulations: Allahabad HC

The Allahabad High Court has held that in absence of any rule or regulation in Uttar Pradesh Cooperative Society Employees Service Regulation, 1975 and Uttar Pradesh Rajya Sahkari Bhumi Vikas Bank Employees Service Rules, 1976, neither a show cause notice can be issued nor departmental proceedings can be initiated against an employee after his retirement.While quashing the proceedings against the retired employee, Justice Neeraj Tiwari held that “in lack of provisions in rules and regulations, after retirement, no show cause notice or departmental proceeding can be initiated against any employee.”The Court further held that once the show cause notice has been issued and no action has been taken by the authorities for a long-time, a fresh show cause notice for the same cause of action cannot be issued at very belated stage. Factual BackgroundPetitioner was working as an Assistant Field Officer in Uttar Pradesh Sahkari Gram Vikas Bank Ltd. at Bhogaon Branch, Mainpuri till his superannuation in 2013. A show cause notice was issued to the petitioner in 2014 regarding recovery of Rs. 2,74,380/- from him. In his reply, the petitioner stated that there was no provision under the 1976 Rules to issue a show cause notice after his retirement. No order was passed on his reply. After 8 years, another show cause notice was issued to the petitioner for recovery of 50% of Rs. 6,47,187/-. Petitioner replied specifically stating that the Rules of 1976 did not provide for issuance of show cause notice to him after his retirement. Petitioner argued that his service was not pensionable and he was being paid gratuity retaining the amount of leave encashment and security.Counsel for respondent argued that the services of the petitioner were governed by 1975 regulations and not 1976 Rules. Relying on the decision of Supreme Court in U.P. State Sugar Corp. Ltd. v. Kamal Swaroop Tondon, it was argued that show cause notice can be issued even after retirement. High Court VerdictThe Court observed that in Dev Prakash Tewari v. U.P. Cooperative Institutional Service Board, the Apex Court had held that after retirement of the employee, the employer had no authority to continue the disciplinary proceedings even for the purpose of reduction of retiral benefits. Further, in Brahamnad Tyagi v. State of U.P. and others, the Allahabad High Court held that “From perusal of the judgments of the Apex Court as well as this Court, it is very much clear that once there is no rule occupying the field for disciplinary proceeding against an employee after retirement, proceeding so initiated or continued after retirement, is not sustainable as it de-hors the rules and liable to be set aside.”The Court held that for lack of provisions in the Rules and Regulations governing the services of the employee, no show cause notice can be issued to retired employee for recovery of any amount. Distinguishing the judgment of the Supreme Court in Kamal Swaroop Tondon, the Court held that therein inquiry was initiated prior to the retirement of the employee whereas in the case before the High Court, the show cause notice was served upon a retired employee. The Court held that there is no provision under the 1976 Rules and 1975 Regulations empowering the authorities to issues a show cause notice or to initiate departmental inquiry against an employee after his retirement. Accordingly, the show cause notices were quashed and writ petition was allowed. Case Title: Prem Kumar Tripathi v. The State Of Uttar Pradesh And Another 2024 LiveLaw (AB) 229 [WRIT - A No. - 19256 of 2023]Case Citation: 2024 LiveLaw (AB) 229Click Here To Read/Download Order

No Show Cause Notice/Departmental Proceeding Can Be Initiated Against Retired Employee In Absence Of Rules/Regulations: Allahabad HC

Upasna Agrawal

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