IN THE HIGH COURT OF JUDICATURE AT MADRAS DATE: 10-02-2009 CORAM: THE HONOURABLE MRS. JUSTICE PRABHA SRIDEVAN AND THE HONOURABLE MR. JUSTICE K.K. SASIDHARAN W.A. Nos. 215, 336, 337, 338 & 491 of 2007 W.A. No. 215 of 2007 S. Sennan ..Appellant Vs. Tamilnadu Civil Supplies Corporation Ltd., rep. by its Regional Manager, Virudunagar Region, Virudunagar 626 001. ..Respondent Prayer: Writ Appeals against the order dated 2.1.2007 in W.P. Nos. 20407/2004, 27239/2005, 1478/2005, 1479/2005 & 10429/2005. W.P.NO.20407/2004 Petition presented to this court under article 226 of the Constitution of India to issue a Writ of Certiorari filed Mandamus calling for the records relating to the proceedings R.C.No.E1/11739/2002 dated 23.5.2004 of the respondent quash the same in so far as imposes the recovery of Rs.1,51,851/- and consequently direct the respondent to disburse the retirement benefits with penal interest. W.P.NO.27239/05 calling for the records relating to the proceedings No.H5/101471/2004 dated 19.8.2004 of the respondent, quash the same and consequently direct the respondent to refund the amount of Rs.1,49,443/- recovered from the exgratia payment with 18% penal interest. W.P.NO.1478/05 calling for the records relating to the proceedings, RC.No.K17/2523/97, dated 18.11.2004 of the 1st respondent along with the Proceedings Rc.No.AE7/67684/2001 (E9) DATED 9.9.2004 of the 2nd respondent, quash the same in so far as it relates to the recovery of https://hcservices.ecourts.gov.in/hcservices/ Rs.69,533/50 from the petitioners retirement benefits and consequently direct he respondents to refund the recovered amount with penal interest. W.P.No.1479/05 calling for the records relating to the proceedings, RC.No.AE7/67684/2001 (E9) , DATED 9.9.2004 of the 2nd respondent, quash the same in so far as it relates to the recovery of Rs.1,41,762/-minus the amount of RS.69,533/- which is the subject matter separate wp. from the petitioners retirement benefits and consequently direct the respondents to refund the recovered amount with penal interest. W.P.NO.10429/05 calling for the records relating to the 1st respondent Proceedings No. Rc E7 / 1815 /90 dated 31.7.03 with his subsequent Proceedings No. Rc C3 / 4392 /98 dated 27.9.04 including the Proceedings No. R9 / 6046 / 04 dated 2.8.2004 of the 3rd respondent by which the petitioner has been imposed recovery of Rs.71,035/- from his retirement benefits, quash the same and consequently direct the respondents to refund the said amount with penal interest along with cost. For Appellants :: Mr.S. Venkataraman For Respondent :: Mr.J.A. Selvakumar JUDGMENT (The judgment of the Court was delivered by PRABHA SRIDEVAN,J.) All the appellants are employees of Tamil Nadu Civil Supplies Corporation, who have attained their age of superannuation. In the order permitting them to retire, it was specifically noted that this order was without prejudice to the recovery of the amount allegedly due to the Corporation. The petitioner has challenged the same. The learned Judge allowed the writ petition and directed the respondents to give a personal hearing. 2. The learned counsel submitted that when there was no enquiry, preceding the impugned order, before the employees retired themselves, personal hearing will be a mere formality and the employees will have no real opportunity to resist the recovery. The learned counsel referred to an unreported judgment in W.A.Nos.3055 to 3058 of 2003 dated 7.4.2004 in which an identical order was challenged and the writ appeal ended in favour of the employees. We https://hcservices.ecourts.gov.in/hcservices/ also find that the Civil Supplies Corporation itself has issued the following instruction, one in 8.7.2005 and the other in 8.12.2005. "Rc.No.AE3/45833/04 8.7.2005 ...In the absence of provision it is requested not to issue retirement order "without a rider that they are permitted to retire from service without prejudice to the disciplinary proceedings/ recovery proceedings / audit recovery / audit objection etc. Rc.No.AGR2/21034/84 8.12.2005 ...The Senior Regional Managers/ Regional Managers are therefore informed that as per payment of Gratuity Act, gratuity payment to the retired employee and to the legal heirs of the deceased employees will be settled by adjusting the following loans and advances only. 1. Coop – thrift loan outstanding amount 2. Staff (Personal) loans and advances" 3. Of course, these instructions have been issued prior to the impugned order, but they only confirm what this Court had stated in the writ appeal referred to above. The learned counsel also submitted that following this, the learned Single Judge also had allowed the writ petition filed by a retired employee quashing the order of recovery after the date of retirement without any prior enquiry. 4. The writ appeals are therefore, allowed. *"The respondents shall release the amounts withheld. We have also made it clear that if any orders had been passed pursuant to the order that is now reviewed those orders will have no effect". The said amount shall be released within the period of Six weeks from the date of receipt of a copy of this order. Sd/-Asst.Registrar 30.3.2009 *Amended order to be issued as per order of this Court dated 17.7.2009 in MP.Nos.1,1,1,1/09 in WA.Nos.215, 336 to 338/2007 Sd/-Asst Registrar 22.7.2009 /true copy/ glp Sub Asst.Registrar https://hcservices.ecourts.gov.in/hcservices/ To 1.The Regional Manager, Tamilnadu Civil Supplies Corporation Ltd., Virudunagar Region, Virudunagar 626 001. 2.The Chairman and Managing Director, To be substituted Tamil Nadu Civil Supplies Corporation Ltd., this order already Chennai-10. despatched on 3.4.2009 3.The Senior Regional Manager Tamil Nadu Civil Supplies Corporation Ltd., Thiruvannamalai Region, Thiruvannamalai. 4.The Regional Manager Tamil Nadu Civil Supplies Corporation Ltd., Thiruvallore Region, Periakuppam, Tiruvallore. 5.The Senior Regional Manager, Tamil Nadu Civil Supplies Corporation Ltd., Chennai-86. 3 CCs To Mr.S. Venkataraman, Advocate, SR NOs.32046 1 CC To Mr.J.A. Selvakumar, Advocate, SR NO.5427 W.A. Nos. 215, 336, 337, 338 & 491 of 2007 KK(CO) PMK/31.3.2009. SR/22.7.2009 https://hcservices.ecourts.gov.in/hcservices/