Tedious Judicial Process Cannot Be Used To Harass Employees: Calcutta High Court Directs UCO Bank To Release Arrears Of Pay & Retirement Benefits

The Calcutta High Court has directed UCO Bank to disburse within a period of 6 weeks, the salary arrears, retirement and service benefits of a retired employee whose conduct during service is being disputed by the Bank.

Earlier, the petitioner’s order of dismissal by the Bank was dismissed by a co-ordinate bench, whose order was subsequently upheld by a division-bench on 27^th June 2023.

In allowing the writ petition, a single-bench of Justice Shekhar B. Saraf held:

“I see no merit in the arguments of the respondents to deny the petitioner his salary arrears, retirement and service benefits on grounds of pendency of appeal or the order of dismissal of service since both such grounds are redundant after the order of the Division Bench of this High Court dated June 27, 2023. The argument that they may file an appeal challenging the order of the Division Bench of this High Court in the future and therefore, in the eventuality of pendency of such future appeal, the petitioner must not receive his arrears is not sound in law. The possibility of pendency of future appeals cannot be grounds for not withholding an employee’s salary arrears, retirement and service benefits.”

Brief Facts

These observations came in a plea by an employee of the UCO Bank who was dismissed from service in 2007 upon a disciplinary inquiry.

The petitioner challenged his dismissal before both the Appellate and Review authorities, which upheld the punishment imposed.

The petitioner thereafter filed a writ petition challenging the punishment orders and seeking withdrawal of the charge sheet, order of suspension, and inquiry report.

Petitioner’s writ petition was allowed by a single-bench in 2015, which set aside and quashed the orders of punishment imposed on the petitioner. An appeal by the Bank before a division-bench was dismissed in June 2023.

The present petition was filed by the petitioner seeking retirement benefits including provident fund and gratuity.

Petitioners argued a sum of Rs.2,36,00,000 had accumulated after addition of the retiral benefits and other statutory claims against the respondents.

It was submitted that due to the Division Bench’s order dismissing the Bank’s appeal, nothing stood against the petitioner getting his salary arrears and retirement benefits.

Petitioner argued that the sole ground taken by the Bank in opposing his plea was the possibility of another appeal being preferred in the future, and the same could not preclude the petitioner from getting his arrears and benefits,

Respondents contended that nothing was payable to the petitioner since he was dismissed from service which was grounds for withholding gratuity and non-payment of leave encashment.

Court’s Observations

In perusing the Division Bench order which dismissed the Bank’s appeal and ruled in favour of the petitioner, the Bench noted that the possibility of pendency of future appeals cannot be grounds for not withholding an employee’s salary arrears, retirement and service benefits.”

Upon ordering the bank to forthwith settle the petitioner’s arrears, the Court ruminated over how the country’s “tedious judicial system” was being conveniently used by an employer to harass an employee. It concluded:

Even if one does not consider the inherent imbalance of power relations between the employer and employee, the possibility of another stage of litigation in the future cannot be cited as a valid ground for denial of salary arrears, retirement and service which are the right of the employee. It is disappointing to see how some have/are using the judicial system, to cause delay unnecessarily and illegally against enforcement of fundamental rights of an employee.

Citation: 2023 LiveLaw (Cal) 302

Case: Sri Nirbhay Lodh Vs. The UCO Bank & Ors.

Case No: W.P.A. 3383 of 2021

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