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INDIA BUSINESS WORLD - JANUARY 1st - JANUARY 15th - 2008


DELHI HIGH COURT DIRECTS CAG TO PAY PENSIONARY BENEFIT TO WIDOW

The Delhi High Court has directed the Comptroller and Auditor General to release the pensionary benefits of the widow of an employee working with them, which were illegally deducted against the dues of the flat alloted to him.

Justice Gita Mittal directed the Comptroller and Auditor General of India (CAG) to release the pensionary benifits of Rs 4,14,751 to the widow of the employee, along with eight per cent interest as all the deductions made were illegal. The court also ordered the CAG and the Estate office to jointly pay Rs 15000 as legal fee incurred by the petitioner.

The case pertains to one Mr S Nagiah posted as Deputy Director in the office Accountant General in the year 1989.

He was alloted an official quarter, No 24-D, Thompson Road by the Directorate of Estates in March 1990. A standard amount of Rs 115 per month was being deducted from his salary from March 1990 to March 1994.

In The year 1994 Mr Nagiah was tranferred to Hyderabad and a government flat was alloted to him there. He vacated the flat in Delhi and a standard deduction was being made from his salary for his Hyderabad flat.

The Estate officer never mentioned any dues regarding his flat in Delhi. However, on June 6,2001 an eviction order was passed against him and dues amounting to Rs 4,14,751 were demanded from him stating that he was in illegal occupation of the Delhi flat.

All the pensionary benifits of Mr Nagaiah were held up and he died due of shock.

After his death, his wife Bharati approached the Central Adminstrative Tribunal in Hyderabad but they said that the Jurisdiction was in Delhi.

Ms Bharati approached the Delhi High Court for relief.

Mr Anil Navriya, lawyer for Ms Bharati told the court that the CAG had made all the deductions illegally as they were fully aware that Mr Nagaiha had vacated the flat in 1984.

It was the callous attitude of the officials of the Estate office who should have taken all the related papers from him.

The court held that the deductions made by the Estate office and the CAG were illegal and said if he had not vacated the house in Delhi, how could he have been alloted a flat in Hyderabad.

The court held that the licence fee of the flat was being deducted from the salary of Mr Nagaiah, which could have been carried on in the event of his occupying the New Delhi flat.

The High Court termed the eviction order issued by the Estate office as 'belated and illegal' and setting the same aside, the judge directed the CAG to pay the pensionary benifits to the deceased's wife.

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