The High Court of Karnataka has castigated Hubballi Electricity Supply Company Ltd. (HESCOM) for denying retirement benefits to a former employee from past 11 years in the guise of making recovery of loss of ₹86 lakh allegedly caused by him while in service, without holding any inquiry as mandated by law.
“None of the necessary procedures for initiating recovery are even followed by the company against the petitioner. There cannot be better illustration of the employer taking the employee’s rights for a ride and imposing huge recovery of ₹86,52,163 against the petitioner,” the court observed.
Justice M. Nagaprasanna passed the order while allowing a petition filed by 70-year-old A.M. Makandar, who had retired as junior engineer.
“The petitioner, who retired on May 31, 2013, is fighting for grant of pension even today after 11 years of superannuation. It is not paid on account of recoveries against the petitioner all of which have been ordered in blatant violation of the principles of natural justice. The case at hand appears to be sui generis [of its own kind] as constitutional courts would rarely come across such grossly arbitrary action by the employer, against its employee,” the court observed.
Stating that “there cannot be better illustration of the employer taking the employee’s rights for a ride,” the High Court said “the petitioner, who has been left bleeding; would never see the wound healing” if the terminal benefits are not paid without any further delay with interest. The court also imposed a cost of ₹1 lakh on HESCOM.
Quashing steps taken to recover ₹86 lakh from him, the court directed HESCOM to pay all his terminal benefits with effect from May 31, 2013, with 6% interest within four weeks, failing which it would have to pay interest at 12%.
