In absence of rules, no show-cause notice can be given to retired employees : Allahabad HC

Prayagraj: The Allahabad High Court has held that in the absence of any rule or regulation in Uttar Pradesh Cooperative Society Employees Service Regulation, 1975 and Uttar Pradesh Rajya Sahkari Bhumi Vikas Bank Employees Service Rules, 1976, neither a show cause notice can be issued nor departmental proceedings can be initiated against an employee after his retirement.

While quashing the proceedings against the retired employee, Justice Neeraj Tiwari held that "in lack of provisions in rules and regulations, after retirement, no show cause notice or departmental proceeding can be initiated against any employee."

The Court further held that once the show cause notice has been issued and no action has been taken by the authorities for a long-time, a fresh show cause notice for the same cause of action cannot be issued at very belated stage.

The petitioner was working as an Assistant Field Officer in Uttar Pradesh Sahkari Gram Vikas Bank Ltd. at Bhogaon Branch, Mainpuri till his superannuation in 2013.

A show cause notice was issued to the petitioner in 2014 regarding recovery of Rs. 2,74,380/- from him. In his reply, the petitioner stated that there was no provision under the 1976 Rules to issue a show cause notice after his retirement. No order was passed on his reply.

After eight years, another show cause notice was issued to the petitioner for recovery of 50 per cent of Rs 6,47,187/-.

Petitioner replied specifically stating that the Rules of 1976 did not provide for issuance of show cause notice to him after his retirement. Petitioner argued that his service was not pensionable and he was being paid gratuity retaining the amount of leave encashment and security.