Allahabad High Court Overturns Recovery Order Against Retired Employee

The Allahabad High Court has invalidated a recovery order issued against a retired employee of the State Warehousing Corporation, Fatehpur, citing procedural violations and the inapplicability of departmental inquiries post-retirement.

The court ruled after learning that the employee, Sundarlal, had unjustly penalized despite no longer being an active staff member.

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Justice Ajit Kumar issued the order, overturning the recovery demand of Rs 27,21,930.26 imposed by the Managing Director.

The court ruled that since Sundarlal had retired, he was no longer subject to departmental inquiry procedures.

The court criticized the handling of the investigation, noting significant lapses in adherence to legal procedures.

Sundarlal challenged the recovery order, claiming he was denied a fair chance to present his case or evidence.

The petition argues that officials ignored the retired employee’s response to the charges and relied on a one-sided investigation report.

The court noted that officials did not set a date for oral evidence or follow the legal process, including failing to adhere to Regulation 16(3).

Senior advocate OP Singh for the State Warehousing Corporation argued for a case remand for regular investigation, claiming that the inquiry process began before Sundarlal’s retirement.

However, the court rejected this argument, emphasizing that a retired employee cannot be subjected to such procedures.

Petitioner’s advocate Ashutosh Tripathi highlighted that officials denied Sundarlal the chance to explain his position and issued the investigation report without due process.

The court found these procedural errors significant enough to invalidate the recovery order issued on 24 October 2016.

In response to the court’s decision, the corporation’s advocate conceded the procedural shortcomings but suggested a re-investigation.

Nonetheless, the court deemed such a course of action inappropriate, thereby cancelling the recovery order and reaffirming the procedural rights of employees, even in cases involving retirement.

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