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Synopsis

The Calcutta High Court recently directed the state government to pay the overdrawn amount to a Group ‘C’ employee which was recovered post his retirement from his retiral benefits.

The single bench of Justice Lapita Banerji observed that Biswanath Paul (Petitioner) not only suffered extreme hardship due to the deduction of the purported overdrawn amount post-retirement but also suffered hardship because of the belated disbursement of the retiral dues.

The petitioner was a group ‘C’ employee and was superannuated from his service on March 31, 2019, and his retiral benefits were belatedly paid on October 25, 2019.

An amount of Rs. 8,43,465 was subtracted by the respondents from the retirement benefits that were due and payable to the petitioner because the petitioner had overdrawn his account.

The counsel for the petitioner challenged the said recovery and submitted that not only the petitioner had suffered extreme hardship due to the deduction of the purported overdrawn amount post-retirement but also suffered hardship because of the belated disbursement of the retiral dues.

It was further argued that such deduction was arbitrary and illegal and that the petitioner’s case was covered by the decision in The State of Punjab &Ors. vs. Rafiq Masih wherein it was held that the recovery by the employers is impermissible in law in the following conditions:

1. Recovery from the employees belonging to Class III and Class IV service (or Group C and Group D service).
2. Recovery from the retired employees, or the employees who are due to retire within one year, of the order of recovery.
3. In any other case, where the court arrives at a conclusion

The court while setting aside the impugned order directed the West Bengal State Minor Irrigation Corporation Ltd. (WBSMICL) to pay the amount of Rs. 843,465 along with an interest rate @6% p.a. from April 1, 2019 (being the date succeeding the date of retirement) to the petitioner.

Case Title: Biswanath Paul vs. State of West Bengal