C.P.SREEDEVI v. STATE OF KERALA

R5 & R6 BY ADV. SRI.K.R.SUNIL,SC,CO-OP.EMPLOYEES PENSION BOARD R3 AND R4 BY ADV. SRI.R.GIREESH VARMA R1 & R2 BY GOVERNMENT PLEADER SRI P.P.PADMALAYAN THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 09-10-2012, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: W.P.(C).NO.14776/2012 APPENDIX PETITIONER'S EXHIBITS: EXT-P1 TRUE COPY OF THE COVERING LETTER DATED 25/1/2006 OF RESPONDENT NO.4 BY WHICH THE APPELLATE ORDER WAS COMMUNICATED TO THE PETITIONER. EXT-P1(A) TRUE COPY OF THE APPELLATE ORDER DATEDMN12/1/2006 PASSED BY RESPONDENT NO.3. EXT-P2 TRUE COPY OF THE ORDER BEARING GO(RT)NO.13/2008-C,OP DATED 4/1/2008 PASSED BY RESPONDENT NO.1. EXT-P3 REPRESENTATION DATED 15/05/2012 BEFORE RESPONDENT NOS.1 TO 6 RESPONDENTS' EXHIBITS: EXT.R3(a) TRUE COPY OF THE LETTER DATED 18/7/2012 ISSUED TO THE PETITIONER. TRUE COPY P.S. TO JUDGE HARUN-UL-RASHID,J. ------------------------- W.P.(C).NO. 14776 OF 2012 ------------------------- DATED THIS THE 9TH DAY OF OCTOBER, 2012 JUDGMENT The writ petition is filed for a direction to respondents 5 and 6 to initiate adequate and effective steps for disbursing monthly pension and its arrears legally due to the petitioner along with interest at the current market rate within such time as this Court may deem fit, for a direction to respondents 1 to 4 to initiate effective steps for disbursing retirement benefits including gratuity, provident fund, welfare fund and service benefits legally due to the petitioner in view of her compulsory retirement from service by Ext.P1(a) order along with arrears and interest at the current market rate within such time as this Court deem fit. In the alternative it is prayed for a direction directing the respondents to take steps for sanctioning and disbursing compassionate allowance legally due to the petitioner within such time as this Court may deem fit.

2. Petitioner is a former junior clerk/cashier of the 4th W.P.(C).No.14776/2012 -2- respondent-Bank. Pursuant to the disciplinary proceedings initiated against her on charges of misappropriation of funds, the disciplinary authority resolved to remove the delinquent employee from the service of the Bank with effect from 24/2/2005. The Sub Committee of the Bank, which is the Appellate Authority, adopted a lenient view and the punishment was limited to compulsory retirement by its decision dated 12/1/2006. The Appellate Authority set aside the punishment of removal from service and awarded compulsory retirement from service under Rule 198(1)(g) of the Kerala Co-operative Societies Rules, 1969 so as to enable the petitioner to draw monthly pension and other retirement benefits counting the service already rendered by her in the Bank. The 4th respondent-Bank by resolution dated 12/1/2006 recommended to the Pension Board to sanction compassionate allowance.

3. The learned counsel for the petitioner brought to the notice of this Court the proviso to Clause 18(2) of the Kerala W.P.(C).No.14776/2012 -3- Co-operative Societies Employee's Self Financing Pension Scheme, 1994 (for short the 'Pension Scheme'). Clause 18(1) of the Pension Scheme provides that every employee of a society to which the scheme applies shall, subject to the other provisions of the Scheme, be eligible for pension under this Scheme. Clause 18 (2) provides that an employee, who has been dismissed or removed for misconduct, insolvency or inefficiency, shall not be eligible for pension. The proviso to Clause 18(2) is extracted below: “Provided that the authority to impose such penalty may, recommend to the Board to grant compassionate allowance to the employee so dismissed or removed in deserving cases.”

4. The Division Bench of this Court in the decision reported in Mohandas v. Kerala State Co-operative Employees Pension Board (2012 (3) KLT 666) held that the entitlement for compassionate allowance is completely a matter of discretion within the powers of the authority imposing the punishment. It was further held that the compassionate allowance is not a right or W.P.(C).No.14776/2012 -4- entitlement of every employee removed from service and the only right is the right to be considered by the authority imposing the punishment for eligibility for allowance and the extent of it. The Division Bench also held that compassionate allowance can be granted only on recommendation by the disciplinary authority which imposed the punishment that disentitled the employee for pension under the first provisio to Clause 18(2) of the Pension Scheme. The Division Bench further held that when the 2nd proviso is read along with the powers conferred under the first proviso on the disciplinary authority which imposed the punishment we feel it is for the said authority to recommend the extent of pension subject to the ceiling of two third that could be given as compassionate allowance, that recommendation of eligibility for compassionate allowances and also the extent of compassionate allowance by the authority imposing the punishment are binding on the Pension Board and that in every case covered by Clause 18(2) disentitling an employee for W.P.(C).No.14776/2012 -5- pension, it is upto the authority imposing the punishment to take stock of the whole service and performance of the employee and recommend compassionate allowance, if found eligible upto a maximum of two third of the eligible pension. In the facts and circumstances of the case, the writ petition is disposed of directing the 4th respondent to forward copy of the pension docket as provided in paragraph 27 of the Pension Scheme to the petitioner within a period of one week from today, so that the petitioner can fill up the application and submit the same before the 4th respondent within one week thereafter. On receipt of the filled up application the 4th respondent shall forward the same to the 2nd respondent-Joint Registrar within one week thereafter and the Joint Registrar shall forward the same to the Pension Board within a period of two weeks from the date receipt of the pension application. On receipt of the application, the Pension Board shall pass an order sanctioning compassionate allowance expeditiously and shall disburse the compassionate W.P.(C).No.14776/2012 -6- allowance with arrears to the petitioner as expeditiously as possible, at any rate, within a period of one month thereafter. kcv. Sd/- HARUN-UL-RASHID, JUDGE.