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Case Details

IN THE HIGH COURT OF ORISSA AT CUTTACK WP(C) No.8410 of 2022 ..... Sundari Sen Petitioner Mr. S. Rath, Advocate State of Odisha & Ors. -versus- ..... Opposite Parties Mr. S.P. Das, ASC Mr. A.K. Nath, Advocate (Opp. Party No. 7) THE HON'BLE MR. JUSTICE BIRAJA PRASANNA SATAPATHY CORAM:

Decision

ORDER 19.12.2024 Order No.07 1. This matter is taken up through hybrid mode. 2. Heard Mr. S. Rath, learned counsel appearing for the Petitioner, Mr. S.P. Das, learned Addl. Standing Counsel appearing for the State-Opp. Parties and Mr. A.K. Nath, learned counsel appearing for Opp. Party No. 7. 3. The present writ petition has been filed inter alia with the following prayer:- “In the above facts and circumstances, the petitioner humbly prays that this Hon'ble Court may be graciously pleased to issue writ/writs in the nature of a writ of Mandamus directing the opposite parties in sanctioning and releasing the final pension, gratuity and other benefits of late husband of the petitioner in waiving the interest of loan amount against the deceased husband within a specific time along with 12% interest. And further be pleased to pass any other order/orders, direction/directions as deemed fit and proper. And for this act of kindness, the petitioner shall remain ever pray.” Page 1 of 4. 4. It is contended that Petitioner who happens to be the wife of the deceased employee is before this Court challenging the action of the Opp. Parties in not releasing the final pension, gratuity and other benefits as due to her late husband on the ground that the loan availed by the deceased employee from Odisha Rural Housing Development Corporation while in service has not been cleared. 4.1. Learned counsel for the Petitioner contended that Petitioner’s husband had availed loan amount of Rs.50,000/- from the Corporation on 29.09.2001 and the said loan amount was required to be recovered by way of EMIs to be deducted from the salary of the deceased employee. It is contended that in spite of such clear provision, no recovery was made from the salary of the deceased employee on monthly basis and in the meantime Petitioner’s husband died on 28.08.2005. Because of the death of the deceased employee no further action was taken by the Corporation in recovering the amount as due and admissible. But on the face of such in action on the part of the Corporation in not recovering the loan amount of Rs.50,000/-, now a demand has been raised for recovering an amount of Rs.6,88,446/- as on 31.03.2022 as per the statement of account available under Annexure-A/6 wrongly typed as Annexure-A/1. 4.2. It is contended that since because of the in action of the Corporation loan amount of Rs. 50,000/- was not recovered from the monthly salary of the deceased employee, Petitioner is not liable to pay the outstanding so shown in Annexure-A/6. It is also contended that because of non-payment of the loan amount, Opp. Party No. 5 is not releasing the gratuity entitlement of the deceased employee till date along with other retiral benefits as due to the Page 2 of 4. deceased employee. It is accordingly contended that since because of the latches on the part of the Corporation the loan amount was not recovered, withholding of the gratuity amount as due to the deceased employee on the ground of non-clearance of the loan amount is not sustainable in the eye of law. 5. Mr. S.P. Das, learned Addl. Standing Counsel basing on the stand taken in the counter affidavit so filed by Opp. Party No. 5 contended that since housing loan availed by the deceased employee has not yet been cleared and the outstanding as on date stands at more than Rs.6,00,000/-, the gratuity amount has only been withheld and other retiral benefits have already been sanctioned in favour of the Petitioner. Instruction filed in that regard in Court be kept in record. 6. Mr. A.K. Nath, learned counsel appearing for the Corporation contended that since the loan amount was not paid by the deceased employee, outstanding as on 31.03.2022 stands at Rs.6,88,446/-. It is accordingly contended that unless and until the loan amount is cleared, Petitioner is not entitled to get the retiral gratuity as due to the deceased employee. 7. Having heard learned counsel appearing for the Parties and considering the submissions made, this Court is of the view that for non-payment of the loan availed by the deceased employee from Odisha Rural Housing Development Corporation, denial of the gratuity amount as due to the deceased employee is not legal and justified. 7.1. However, taking into account the materials placed before this Court, this Court is of the view that Petitioner is entitled to get the Page 3 of 4. retiral gratuity as due to the deceased employee on her depositing the principal amount of Rs.50,000/- before Opp. Party No. 6 along with an application for settlement of the loan account on compromise. This Court accordingly directs the Petitioner to deposit a sum of Rs.50,000/- before Opp. Party No. 6 within a period of two (2) weeks from the date of receipt of this order along with an application for statement of loan account on compromise. On such deposit of the amount with due production of the receipt of before Opp. Party No. 5, Opp. Party No. 5 shall take effective step for release of the retiral gratuity as due to the Petitioner within a period of one (1) month from the date of receipt of the information regarding deposit of Rs.50,000/- as directed. 7.2. Opp. Party No. 6 is also directed to consider the application of the Petitioner for settlement of the loan account on compromise taking into account the stand that will be taken in the application for compromise. Opp. Party No. 6 is also directed to take the decision by taking a lenient view, as the original loanee is no more there and no action was taken to recover the amount from the monthly entitlement of the deceased employee till he died on 28.08.2005. 8. The writ petition is accordingly stands disposed of. (BIRAJA PRASANNA SATAPATHY) Judge Sneha Signature Not Verified Digitally Signed Signed by: SNEHANJALI PARIDA Designation: Sr. Stenographer Reason: Authentication Location: High Court of Orissa, Cuttack Date: 23-Dec-2024 16:00:57 Page 4 of 4.

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