CUTTACK: In a significant ruling, the Orissa high court has held that an employee’s promotion cannot be withdrawn after retirement, setting aside an order of the Cuttack Urban Cooperative Bank (CUCB) that reversed a promotion and sought to recover alleged excess salary from a retired employee.
The CUCB is a primary Co-operative Society registered under the provisions of Orissa Co-operative Societies Act,A single-judge bench of Justice Biraja Prasanna Satapathy passed the order while considering a petition filed by Sagar Keshari Nayak, who had retired on superannuation on June 30, 2022.Nayak had joined the bank as a junior assistant in 1990 and was serving as a senior assistant (Grade V) when he was promoted to assistant manager (Grade IV) following a recommendation by the Departmental Promotion Committee on June 22, 2022.
The promotion order, issued on June 23, 2022, was given retrospective effect from June 1. He joined the promoted post on June 29, and his pay was fixed accordingly before he retired the next day.However, in August 2022, the bank withdrew the promotion citing irregularities in the earlier recommendation and directed recovery of the additional salary drawn. Challenging the move, Nayak approached the high court in September the same year.
While disposing of the petition on April 7, Justice Satapathy held that the withdrawal decision came after Nayak’s retirement and therefore could not be applicable to his case. “Since by the time such benefit was withdrawn, Petitioner had already retired while holding the promotional post… Petitioner is not liable to refund the excess payment if any,” he observed.“The Petitioner is eligible and entitled to get all such benefits so admissible to the promotional post including his retirement benefits, Justice Satapathy further ruled, while directing the bank to extend all consequential benefits, including recalculation of retirement dues based on the promotional post. Advocates Dinesh Panda and Amrit Mishra argued on behalf of the petitioner.It was argued on behalf of the Bank that the promotion was illegal and contrary to its Staff Service Rules, 2003, and that Nayak, being on probation, had no vested right to the post. It also cited financial constraints and questioned the large number of promotions cleared at the time when Additional District Magistrate (General), Cuttack was in-charge of the Administration of the Management of the BankHowever, Justice Satapathy quashed the August 26, 2022 order insofar as it related to Nayak..