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1988 (12) TMI 110

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..... ly 19, 1984. After deducting a sum of Rs. 798.53 from out of the Death-cum-Retirement Gratuity, the balance amounting to Rs. 28,076.47 was also sanctioned to the petitioner by exhibit P-7. The petitioner now claims interest at 12% per annum on the various amounts on account of the delayed payment in the following terms : (a) on full pension of Rs. 807 plus DAC Rs. 388 per month from November 1, 1983 to July 3, 1984 ; (b) on the differential value of pension at Rs. 269 per month from July 4, 1984 to August 23, 1984 ; (c) on gratuity of Rs. 28,875 per month from November 1, 1983, to September 2, 1984 ; (d) on commuted pension of Rs. 55,228 from November 1, 1983, to December 11, 1984 ; (e) on refund of the sum of Rs. 798.53 unla .....

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..... at proceeding, the loss to the Revenue has been assessed at Rs. 798.53. The petitioner was, accordingly, informed that in case he was agreeable to remit the said amount or to adjust the same from the Death-cum-Retirement Gratuity, the matter can be referred to the Government and disciplinary action finalised so as to settle the pensionary claims. On receipt of this communication, the petitioner sent exhibit P-3 letter agreeing to have the said amount adjusted from out of the Death-cum-Retirement Gratuity, "under protest and pain of insult". Subsequently, the petitioner was served with exhibit P-5 communication dated October 10, 1984, from the Government informing him that no disciplinary proceeding was initiated against him and that the rec .....

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..... only course that was open to the Government was to challenge the order passed by the appellate authority before the higher forums as per the provisions contained in the Kerala Agricultural Income-tax and Sales Tax Acts. Without recourse to such a step, the Government cannot proceed against the Deputy Commissioner (Appeals) and recover the loss from him. Officers invested with quasi-judicial powers are to discharge their functions without fear of disciplinary action. If the officers invested with such powers are under the threat of disciplinary action on account of orders passed against the interest of the Government, it will interfere with their judicial discretion. It will result in a travesty of justice. Officers entrusted with authority .....

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..... But for the illegal disciplinary proceedings initiated against the petitioner, the petitioner would have got the entire retirement benefits immediately on his retirement. On the facts and circumstances of this case, as stated by the Supreme Court in State of Kerala v. M. Padmanabhan Nair, AIR 1985 SC 356, it would not be unreasonable to direct the Government to pay penal interest on the amounts due to the petitioner from the date of expiry of two months from the date of retirement till the date of payment. The petitioner was granted a provisional pension by exhibit P-2 order dated June 5, 1984. He was granted final pension by exhibit P-7 order dated July 19, 1984. The dates on which the provisional pension and final pension were actu .....

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..... rest at the rate of 18% per annum till the date of payment. The petitioner is entitled to his costs in this original peti tion including advocate's fee of Rs. 750. Before parting with the case, I would like to impress upon the Government the illegal and arbitrary step taken by it in initiating disciplinary action against an officer in regard to the order passed by him in the discharge of his judicial function. Officers entrusted with such duties must be given freedom to discharge their duties in accordance with their judicial discretion. They should not be placed under the threat of disciplinary action for the judicial orders passed by them. In this case, the Government may consider the possibility of recovering the amounts directed to b .....

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