Birendra Kumar Sinha vs The State of Bihar

Rekha M. Doshit, C.J.—This Application for recovery of retiral dues is filed by one Birendra Kumar Sinha, a retired employee of the respondent-Patna Municipal Corporation.

Learned advocate Mr. Prem Nath appears for the petitioner. He concedes that pending this Petition the petitioner has been allowed pension and other retiral dues except Rs. 1,33,612/- the amount of difference in salary from 1st April 1997 to 30th June 2003 and the amount of dearness allowance of Rs. 44,323/-.

The petitioner has retired from service with effect from 30th June 2003. After his retirement, the amounts of difference in salary and dearness allowance have not been paid to him.

Learned advocate Mr. Ranjeet Kumar Pandey appears for the Patna Municipal Corporation. He has submitted that the Patna Municipal Corporation is suffering financial crunch and unless the State Government extends financial assistance the Corporation is unable to pay the terminal dues to its employees. The matter whether the State Government is liable to extend the financial assistance, is at large before the Division Bench in Letters Patent Appeal No. 960 of 2007. Learned advocate has submitted that till the said Appeal is pending, the Corporation is not obliged to pay the terminal dues to its retiring employees.

The contention is ludicrous. The Corporation being the employer, it is the primary duty of the Corporation to pay salary, other benefits and the retiral dues to its employees. The action of the Corporation, in my view, is highhanded and arbitrary.

In the aforesaid circumstances, the Petition is allowed with costs. Respondent-Patna Municipal Corporation is directed to pay the outstanding dues of the petitioner on account of difference in salary and dearness allowance within nine weeks from today. In the event the Patna Municipal Corporation fails to pay the outstanding dues of the petitioner within the time specified, commencing from 1st February 2015 the Corporation shall pay interest on the amount of outstanding dues @ 10% per annum till the date of payment.

Respondent-Patna Municipal Corporation will pay costs of Rs. 20,000/- (Twenty thousand) to the petitioner.

Writ Petition stands disposed of.

Registry will send copy of this order to the respondent Nos. 2, 3 and 4 forthwith.