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2008 DIGILAW 439 (RAJ)

Mohan Lal Jain v. State of Rajasthan

2008-02-13

GUMAN SINGH, SHIV KUMAR SHARMA

body2008
JUDGMENT 1. - The appellant was working as Assistant Secretary in Primary Land Development Bank Bundi (for short `Bank') which was a Co-operative Society under the Rajasthan Co-operative Societies Act, 1965 (for short the Act'). Since the Bank was facing financial crisis, the Registrar Co-operative Societies Rajasthan set up a Financial Committee to give suggestion for saving the bank from financial crisis. The Committee had its meeting on September 16, 1994 and gave suggestions, one of which was to curtail the staff. A decision was taken to abolish the post of Assistant Secretary and the person working on that post be asked on the post of Accountant. Three posts of Lower Division Clerks were also abolished. 2. The Registrar Co-operative Banks as a measure to curb financial crisis, being faced by the Co-operative Banks, floated a scheme known as `Golden Hand-Shake Scheme'. The Bank was also included to give benefit of the said scheme to its employees. On October 12, 1995 the Bank passed resolution to abolish the post of Accountant and retire the appellant compulsorily. The Financial Committee of the Bank held its meeting on October 12, 1995 approved the resolution of the Bank and the appellant was given compulsory retirement. 3. The appellant filed writ petition challenging the order of compulsory retirement on the ground that there was no provision in the Act or Rules to compulsory retire an employee of the Bank. 4. Learned Single Judge in the order dated January 29, 1998 although observed that the Bank could not compulsorily retire the appellant his service could be dispensed with. Learned Single Judge proceeded to observe thus : "But in the instant case, instead of dispensing with the petitioner's services, if he is given the benefit of voluntary retirement with financial benefit of post-voluntary retirement. It is in his interest as Mr. M.D. Agrawal, learned counsel had made a statement during the course of arguments that if the petitioner offers to take voluntary retirement under `golden handshake scheme', he shall be permitted to do so." 5. Learned Single Judge granted four weeks time to the appellant to give his option. But the appellant instead of exercising his option, decided to file special appeal against the order of learned Single Judge. Learned Single Judge granted four weeks time to the appellant to give his option. But the appellant instead of exercising his option, decided to file special appeal against the order of learned Single Judge. It is unfortunate that instant appeal which was filed on April 3, 1998 could not be decided promptly and the appellant attained the age of superannuation in the month of December, 2006. 6. We have heard the submissions advanced before us. 7. As already noticed, the Financial Committee in its meeting dated September 16, 1994 took decision to abolish the post of Assistant Secretary and to allow the person working on the post of Assistant Secretary to work as Accountant. In view of this decision the appellant who was working on the post of Assistant Secretary, started working on the post of Accountant and he ought to have been allowed to work on the post of Accountant continuously. Post of Accountant is a pivot in the Bank services and even at the time of financial crisis, post of accountant cannot be abolished. The act of Financial Committee in abolishing the post of Accountant was arbitrary and against the interest of the Bank. 8. Since there was no provision in the Act to compulsory retire the appellant and abolition of the post of Accountant was against the interest of the Bank, the appellant was entitled to be reinstated on the post of Accountant. 9. But looking to the fact that the appellant has attained the age of superannuation in December, 2006 and he cannot be reinstated now, we in the interest of justice deem it appropriate to issue following directions : (i) The appellant shall be given the financial benefits of voluntary retirement under the Golden Handshake Scheme w.e.f. January 29, 1998 (i.e. the date of judgment of learned Single Judge). (ii) The appellant shall be entitled to the interest @ 9% per annum on the due amount from January 29, 1998 till the date of actual payment. 10. The special appeal stands disposed of as indicated above. There shall be no order as to costs.Special Appeal disposed of as above. *******