CWP No.

20100 of 2012 (O&M) IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH

CWP No. 20100 of 2012 (O&M) Date of decision: 15.07.2013

Jagdish Lal Vs.

..Petitioner

Haryana Dairy Development Cooperative Federation Ltd.

..Respondent

CORAM: HON'BLE MR. JUSTICE M.M.S. BEDI Present: Ms. Anju Arora, Advocate for the petitioner. Mr. Kuldeep Singh, Advocate for the respondent. ***** M.M.S. BEDI, J.(ORAL) Petitioner is retired as Assistant Manager-cum-Personnel Assistant from the office of respondent-Corporation i.e. Haryana Dairy Development Cooperative Federation Ltd. Though he had been getting reimbursed medical claims during his service, but he has been refused reimbursement of the medical bills submitted by him after retirement. On denial of reimbursement of his medical bills, the petitioner has brought a writ in the nature of mandamus directing the respondent to reimburse his medical claim Annxure P-1. As per the written statement, the stand of the respondentFederation is that the respondent-Federation is a cooperative Society,

CWP No. 20100 of 2012 (O&M)

registered under the Haryana Cooperative Societies Act, 1984. For regulating the relationship of employer and the employee, it has its own service rules and certified standing orders of its milk plants. The governing body of the Federation is its Board of Directors comprising of Directors including the Managing Director who is appointed by the State Govenment because the majority of the share capital is held by the State Government. Surprisingly, in order to evade the liability such a plea has been taken because it has been admitted that otherwise the State Government has no control over day to day functioning of the Federation. The respondent-Federation has admitted that prior to coming into force of the Haryana Dairy Cooperative Staff Services Rules, 1988, it had been decided in the Board of Director's meeting of the Federation that only the allowances such as dearness allowance, house rent allowance, Medical Reimbursement etc. shall be allowed as per the allowanes of the State Government. It is claimed that after coming into force of the service bylaws, it has been provided under rule 3.3 of the rules that the Board of Directors of the Federation may revise the pay scales of its employee with the approval of Registrar as and when required. However, there is no provision for the payments of these allowances/facilities to the retired persons in the Haryana Dairy Staff Service Rules, 1988. I have heard learned counsel for the parties and have considered the facts and circumstances of present case. It is an admitted fact that the medical allowance and reimbursement of medical bills was permissble under Rule 1.3 of Haryana Dairy Staff Cooperative Staff Service Rules,

CWP No. 20100 of 2012 (O&M) 1988.

It is an admitted fact that as per Rule 24.1 of the Haryana Dairy Cooperative Service Rules, 1988 the medical allowance and reimbursement of the medical bills was admissible as per the instructions issued from time to time by the Federation. As per Rule 66.1 of the aforesaid Rules it was provided that where these rules are silent, the provisions of Civil Services Rules and the instructions of Government applicable to the other Government employees shall apply to the other employees covered by these rules. The claim of the respondent that after coming into the force of Service Rules of the Federation, the Federation is not liable to pay the medical reimbursement bills, is not tenable. Surprisingly, in para 3 of the preliminary objections, it has been pleaded that Federation is in losses, therefore, it is not in a position to bear this heavy recurring expenditure in the shape of payment of medical allowance and reimbursement to its large number of retired employees. The stand taken by the respondent is absolutely evasive and illegal. The petitioner is entitled to the reimbursement of the medical bills as per the rules and instructions of State Government which would be applicable to the employees as well as the retirees of the Federation. There is no rule snatching such rights from the employees of Federation. In view of the circumstances it is held that the petitioner is entitled to the reimbursement of the medical bills mentioned in Annexure P-1, as admissible under the rules at PGI rates.

CWP No. 20100 of 2012 (O&M)

A direction is issued to the respondent-Federation to release the amount of medical bills vide Annexure P-1 as admissible under the rules at PGI rates within a period of one month after the receipt of certified copy of the order, alongwith interest at the rate of 6% per annum. In case the interest is not released, the respondent-Federation will be liable to pay the interest @ 18% per annum after the expiry of one month. Disposed of.

15.07.2013
Poonam(II)

(M.M.S. BEDI) JUDGE

Sharma Poonam 2013.07.26 14:08 I attest to the accuracy and integrity of this document High Court Chandigarh