IN THE HIGH COURT OF JUDICATURE, ANDHRA PRADESH AT HYDERABAD (Special Original Jurisdiction) FRIDAY, THE TWENTY THIRD DAY OF JANUARY TWO THOUSAND AND NINE PRESENT THE HON'BLE MR JUSTICE C.V.RAMULU WRIT PETITION NO : 4245 of 2008 Between: S. Amboji Rao S/o. S. Narsaiah, A.P. State Handloom Weavers Cooperative Society Ltd. R/o. 1-7- 659/A/18, Ramnagar, Hyderabad-500 020. ..... PETITIONER AND 1 The A.P. State Handloom Weavers Cooperative Society Ltd. Rep. by its Managing Director, Narayanguda, Hyderabad. 2 The A.P. State Handloom Weavers Cooperative Society Ltd. Rep. by its General Manager (Adm), Narayanguda, Hyderabad. .....RESPONDENT(S) Petition under Article 226 of the constitution of India praying that in the circumstances stated in the Affidavit filed herein the High Court will be pleased to issue an appropriate writ or order or direction more particularly one in the nature of Writ of Mandamus declaring that the action of the respondents in withholding the sum of Rs.50,209.89, as illegal and consequently to direct the respondents to pay the said sum of Rs.50,209.89 forthwith with interest at 18 % p.a., till the date of actual payment. Counsel for the Petitioner: MR.B.G.RAVINDER REDDY Counsel for the Respondent No.: MR.CH.JAGANNADHA RAO The Court made the following: ORDER: This writ petition is filed seeking a mandamus declaring the action of the respondents in withholding a sum of Rs.50,209-89 ps. as arbitrary and illegal and consequently, to direct the respondents to pay the said amount of Rs.50,209-89 ps. forthwith along with interest at the rate of 18% p.a. till the date of actual payment. It appears the petitioner joined the service of the respondent- organization on 21-02-1959 and on attaining age of superannuation retired from service on 28-02-2007. According to the petitioner, he joined as office boy and promoted as a Junior Assistant Salesman, Assistant Salesman, Salesman, Manager, Procurement Inspecting Officer, and worked as Assistant Marketing Officer at the time of retirement. According to the petitioner, he had rendered 48 years of unblemished service. While that being so, after his retirement the respondents have withhold an amount of Rs.50,209-89 ps. illegally and without any cause there for. Therefore, this writ petition. A detailed counter-affidavit has been filed on behalf of the respondents denying the allegations made by the petitioner. Further, it is asserted that during the year 1999 a memo dated 27-01-1999 was issued informing the petitioner that during the course of audit for the year 1996-97 it was found that an amount of Rs.45,886-77 ps. was outstanding in his staff personal account regarding Non G.O sales non-recovery. Further, it was observed that since 1989-90 there was no recovery entries against his account. Therefore, his account is showing the same balance till date and he was requested to visit the office personally and confirm the balance of the said amount up to 10-02-1999, otherwise, the same balance shall be taken into account in the financial audit report for the year 1996-97. However, the petitioner sent a reply denying the same. Since there was no reply to the explanation offered by the petitioner, he went on addressing several letters requesting the respondents to release the debit balance of Rs.45,886-77 ps. against his account, but no steps were taken. Ultimately, the deduction was effected from the retiral benefits. A reading of the above would indicate that absolutely no enquiry was conducted to fix the liability against the petitioner for recovery/withholding an amount of Rs.50,209-89 ps. Even according to the respondents the memo was issued on 27-01-1999 and thereafter what happened is not known till date except withholding the amount at the time of payment of retiral benefits to the petitioner. I am of the opinion that no memo was issued, no explanation was called for and no enquiry was conducted. Therefore, withholding of the said amount is arbitrary and illegal and in gross violation of principles of natural justice. Therefore, the action of the respondents in withholding an amount of Rs.50,209-89 ps. is liable to be declared as arbitrary and illegal and accordingly declared as such. In the result, the Writ Petition is allowed and the respondents are directed to refund the amount withhold i.e., Rs.50,209-89 ps. forthwith to the petitioner. However, it is brought to the notice of this Court that during the pendency of the writ petition an amount of Rs.6,000/- has already been paid. The respondents are at liberty to give credit to such amount while paying the amounts as directed above. No order as to costs. ________________ 23rd January, 2009 SKM