SIDDAGANGA URBAN CO-OPERATIVE BANK LIMITED, TUMKUR v. STATE OF KARNATAKA
2005-02-22
K.SREEDHAR RAO
body2005
DigiLaw.ai
K. SREEDHAR RAO, J. ( 1 ) ONE Sri L. V. Mesta, Senior Auditor of Co-operative Societies was deputed to petitioner's Bank. The provisions of Rule 441 of the karnataka Civil Services Rules, 1958 lays down the terms and conditions relating to the payment of salary and emoluments to the civil servants, who are posted to regular establishments but as an addition to such establishment. L. V. Mesta, took treatment for cardiac disease. The said civil servant was given medical reimbursement of Rs. 95,621/- by the first respondent. Respondents 1 to 4 now invoking the above Rule 441 seek recovery of medical reimbursement granted to Sri L. V. Mesta. The provisions of Rule 441 are extracted hereunder:"441. When an addition is made to a regular establishment on the condition that its cost, or a definite portion if its cost, shall be recovered from the persons for whose benefit the additional establishment is created, recoveries shall be made under the following rules: (a) The amount to be recovered shall be the gross sanctioned cost of the service, or of the portion of the service, as the case may be, and shall not vary with the actual expenditure on any month. (b) The cost of the service, shall include contributions at the rates prescribed in Rule 427 and the contributions shall be calculated on the gross sanctioned cost of the service, in respect of the leave salary portion of the contribution and on the average cost of the establishment in respect of the pension portion of the contribution. (bb) The cost of the service shall be paid within fifteen days from the date of raising the recovery under this Rule, on failure of which an interest at the rate of two paise per day per Rs. 100 shall be levied on the amount due from the date of expiry of the prescribed period of 15 days upto the date on which the amount is finally paid. (c) Government may reduce the amount of recoveries or may entirely forego them. Note 1.-The term 'gross sanctioned cost of the service used in this Rule means the average cost of the establishment + Dearness allowance and Dearness-cum-Compensatory-cum-House Rent allowance appropriate to the average cost in the absence of specific orders to the contrary.
(c) Government may reduce the amount of recoveries or may entirely forego them. Note 1.-The term 'gross sanctioned cost of the service used in this Rule means the average cost of the establishment + Dearness allowance and Dearness-cum-Compensatory-cum-House Rent allowance appropriate to the average cost in the absence of specific orders to the contrary. Note 2.-The recoveries on account of pension contribution shoxild not be effected in the case of temporary establishments entertained under this rule when the persons have not been transferred from Government service but are outsiders temporarily appointed. Cases in which the temporary service eventually becomes pensionable should be met by recovering contribution in arrears under proper authority. Note 3.-The words "its cost" where they occur for the first time in this rule refer to an 'addition'. The underlying intention of the Rule is to cover the cost of the additional establishment sanctioned". ( 2 ) THE learned High Court Government Pleader referring to Note 3 of rule 441 argued that the intendment of the Rule is to cover the entire cost of an additional establishment. The medical reimbursement is one of the costs incurred by the first respondent as per the Karnataka Civil services Rules and that the petitioner is liable to pay the medical reimbursement granted to L. V. Mesta, which is obligatory under the rule. ( 3 ) THE clause (a) of Rule 441 declares that "the gross sanctioned cost of the service, or of the portion of the service could be recovered from the establishments where addition is made by the State by sending its employees". Note 1 also defines the term "gross sanctioned cost" to mean the average cost of the establishment+dearness Allowance, City compensatory Allowance and House Rent Allowance in the absence of specific orders to the contrary. Clause (a) of Rule 441 only mandates the recovery of gross sanctioned cost of the service as explained in Note 1. The medical expenses do not come within the meaning of gross sanctioned costs as per the rules. No material is produced by the State to show specific orders to the contrary are issued to include the medical reimbursement amount.
Clause (a) of Rule 441 only mandates the recovery of gross sanctioned cost of the service as explained in Note 1. The medical expenses do not come within the meaning of gross sanctioned costs as per the rules. No material is produced by the State to show specific orders to the contrary are issued to include the medical reimbursement amount. ( 4 ) IN that view of the matter, the claim of recovery of medical reimbursement amount from the petitioner vide Order No. SE 341 alese 2002, 'dated 22-4-2003 at Annexure-E and upshot order at annexure-G, dated 2-12-2003 in No. SE 272 ALESE 2003 are quashed. The learned HCGP is permitted to file her memo of appearance within four weeks from the date of this order. --- *** --- .