DATTATRAYA MAHADEO PUSLEKAR vs. STATE OF MAHA., DEPTT. OF INDUSTRIES, DEVELOPMENT AND LABOUR, THROUGH PRINCIPAL SECTY, AND 2 OTHERS

Case Type: N/A

Date of Judgment: 01-12-2017

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IN THE HIGH COURT OF JUDICATURE AT BOMBAY :
NAGPUR BENCH : NAGPUR.
Writ Petition No. 2355 of 2014
Dattatreya Mahadev Pusalekar,
aged about 60 years, Occ.­Retired,
resident of M­II Vidnyar Nagar 
MHADA Colony Manewada, Nagpur­34.            .... Petitioner.
Versus
1] State of Maharashtra,
Department of Industries,
Development and Labour, 
through its Principal Secretary, 
Mantralaya, Mumbai­32.
2] Maharashtra Small Scale Industries Development 
Corporation Limited, through its General Manager/ 
Managing Director, Krupa Nidhi, 9, 
Walchand­Hirachand Marg, Ballard Estate, 
Mumbai­01.
3] Divisional Manager,
Maharashtra Small Scale Industries Development 
Corporation Limited, Wardha Road, 
Nagpur.                                                   .... Respondents.
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Shri  A.R. Patil, Advocate for petitioner.
Shri  D.N. Kukday, Advocate for resp. nos.2 and 3.
Ms   Ritu Kaliya AGP for resp. no.1.
Writ Petition No. 4773 of 2014
Dattatraya Mahadev Puslekar,
aged about 60 years, Occ.­Retired,
resident of M­11, Vidnyan Nagar, 
MHADA Colony, Manewada, Nagpur­34.            .... Petitioner.
Versus
1] State of Maharashtra,
Department of Industries,
Development and Labour, 
through its Principal Secretary, 
Mantralaya, Mumbai­32.
2] Maharashtra Small Scale Industries Development 
Corporation Limited, through its General Manager/ 
Managing Director, Krupa Nidhi, 9, 
Walchand­Hirachand Marg, Ballard Estate, 
Mumbai­01.
3] Divisional Manager,
Maharashtra Small Scale Industries Development 
Corporation Limited, Wardha Road, Nagpur.  
(Amended as per Court’s 
4] P.M. Malwadkar,                                    
              R/o.­2­/45, Teachers Colony                          order   dated 23­06­2015)
         Bandra (East), Mumbai­400 051.
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Amended as per Court’s
5]  Purushottam Kamlakar Raut,                (
               Enquiry Officer, L­Quarter No.35,                order dated 16­03­2016)
          near Dr. Babasaheb Ambedkar Garden, 
          Vaishali Nagar, Nagpur­440­017.             .... Respondents.
Shri A.R. Patil, Advocate for petitioner.
Shri D.N. Kukday, Advocate for resp. no.3.
Ms  Ritu Kaliya AGP for resp. no.1.
                           Coram : B.P. Dharmadhikari  &
                                      Mrs. Swapna Joshi, JJ.
                        Dated  : 12    
th
   January, 2017.    
ORAL JUDGMENT  (Per  B.P. Dharmadhikari, J.)
The   petitioner,   who   retired   after   attaining   the   age   of 
superannuation, as Assistant Manager, from the employment of 
the   Maharashtra   Small   Scale   Industries   Development 
Corporation on 30­11­2012,   is   before this Court in these two 
petitions.  The grievance in Writ Petition No.2355 of 2014 is about 
not  releasing  the  retirement/terminal dues.    That  petition  has 
been   filed   on   30­04­2014   i.e.   about   two   years   after 
superannuation.  The employer­Corporation filed its reply therein 
and pointed  out that a show cause notice dated 09­12­2011 was 
served upon the petitioner and thereafter memorandum along 
with articles of charges was also served upon him on 27­11­2012. 
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As departmental enquiry was going on, the dues could not have 
been paid.
2] In the light of this disclosure in reply­affidavit, the petitioner 
filed later petition pointing out that the Service Rules do not 
empower   the   employer­Corporation   to   proceed   against   the 
superannuated employee.
3] After hearing   the respective Advocates, we find that the 
petitioner in Writ Petition No.4773 of 2014   had placed reliance 
upon a judgment dated 31­01­2012 delivered at Principal Seat at 
Bombay   in   Writ   Petition   No.322   of   2011   ( Prakash   Krishnaji 
Jambavdekar   vrs   Maharashtra   Small   Scale   Industries 
Development  Corpn. Ltd. (MSSIDC) & Ors .), holding that there is 
no such power with present respondents.   That judgment has 
attained finality.
4] The respondents have come up with defence that they have 
amended   the   service   rules   after   the   said   judgment   and 
specifically the power to proceed departmentally against such 
employees has been acquired.  In the light of that amendment, 
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which   has   come   into   force   from   21­03­2012,   the   employer­
Corporation has right  to proceed against the petitioner who has 
retired thereafter i.e on 30­11­2012. 
5] The only question debated before this Court in this situation 
is : Whether  said amendment has come into force on 21­03­2012 
or   then   on   26­06­2013   when   the   Administrative   Department 
issued a memorandum about it.
6] Learned Advocate  Shri Patil for the petitioner submits that 
the date on which the memorandum has been issued by the 
Administrative Department is the relevant date and  therefore the 
employees who retired either on 26­06­2013 or thereafter only 
can be  subjected to amended rules.
7] According   to   learned   Advocate   Shri   Kukday   for   the 
respondent nos. 2 and 3, the rule gets amended on the date on 
which   the   Board   of   Directors   has   passed   resolution     i.e.   on 
21­03­2012 and hence   prior to retirement of the petitioner the 
employer had secured to itself the power to proceed against him.
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8] The perusal of resolution passed against the Item No:11 
Subject   No.323   shows   the   proposed   amendment   to   the 
Employees   Service   Rules   for   initiating   departmental   enquiry 
against   an   employee   upto   period   of   five   years   after   his 
retirement/resignation.   After discussion, the effective resolution 
is :
“RESOLVED THAT “Approval be and is hereby 
accorded for amending the ESR to provide for 
initiating   DE   against   the   Employees   upto   a 
period of four years after his/her retirement or 
resignation where the situation so warrants on 
the lines provided in MCSR”.
9] However, immediately after this, there is further resolution 
and Managing Director is authorized to incorporate the said rule 
in Service Rules of Corporation.  
10] Thus, the power to add this amendment as part of the 
Employees’   Service   Rules   was   delegated   to   the   Managing 
Director by this   later part.   In exercise of this delegation,   the 
General   Manager   (Administration)   has   issued   Office 
Memorandum dt. 26­06­2013 on the subject of amendment.  This 
Office Memorandum carries a preamble  which very briefly gives 
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history of passing of resolution and then actual fact of moving the 
proposal in Subject No:323, Board meeting held on 23­03­2012. 
The Office Memorandum  concludes by observing that :
“The Board approved the proposal and the ESR 
stands amended as follows :­
“In case of employees retired or resigned from 
the services of the Corporation, a Departmental 
Enquiry can be initiated against such employee 
upto   a   period   of   four   years   after   his/her 
retirement or resignation where the situation so 
warrants on the lines provided in MCS Rules.”
11] Thus,   the General Manager has after pointing out   the 
approval of Board pointed out the amended ESR.  It is, therefore, 
apparent   that   the   Board   resolution   has   been   implemented 
through     this   Office   Memorandum   on   26­06­2013.     There   is 
nothing on record to show that  the Board resolution needs tobe 
given effect to before its implementation or execution   by the 
General Manager.   The   respondents have not pointed out any 
provision which has the effect of amending the rules merely by 
act of passing of resolution by the Board without its publication 
for the general information of the employees.   The Board itself 
has not given any date for coming into force of such amendment.
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12] We, therefore, find substance in the contention of learned 
Advocate Shri Patil  for the petitioner that the rules are amended 
for the first time on 26­06­2013 and hence the petitioner who has 
retired   on   30­11­2012   cannot   be   subjected   to   the   amended 
provision.  Board itself finds  “incorporation” of its resolution as 
part of Service Rules essential & hence till so incorporated, the 
amendment & Rules do not come into force.
13] Accordingly, we quash and set aside the charge­sheet as 
also   departmental   enquiry   initiated   against     the   petitioner   by 
respondent no.2­Corporation.
14] We  direct  the respondent no.2­Corporation, to release  all 
his   terminal/retiral   dues   as   prayed   for   in   prayer   after   proper 
calculation thereof, within period of four months from today.
15] If   the   Service   Rules   contain   any   stipulation   for   paying 
interest on such delayed payment/ interest, accordingly, shall also 
be paid to the petitioner.   In absence of such provision, the 
interest calculated at the rate of   7% per annum on the said 
amount shall also be paid to him till the date of actual payment.
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16] Rule is made absolute accordingly in both the petitions.  No 
costs.
              
            JUDGE                                      JUDGE
  
Deshmukh 
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