A L KALRA Vs. PROJECT AND EQUIPMENT CORPORATION OF INDIA LIMITED
LAWS(SC)-1984-5-8
SUPREME COURT OF INDIA
Decided on May 01,1984

A.L.KALRA Appellant
VERSUS
PROJECT AND EQUIPMENT CORPORATION OF INDIA LIMITED Respondents

JUDGEMENT

- (1.) Failure to adjust the antena to the operative channel and dipping the head like the proverbial ostrich in the sand so as not to view the changing kaleidoscope of the law can alone be said to be responsible for this trivial matter to be brought to this Court.
(2.) Respondents the Project and Equipment Corporation of India Ltd. ('Corporation' for short) since its formation in 1971 a wholly owned subsidiary company of State Trading Corporation ('STC' for short), a Government of India Undertaking up to 1976 when it was separated and since then it functions as a Government of India undertaking. The appellant A. L. Kalra joined as Upper Division Clerk in the STC on August 6, 1963. On November 1, 1969, he came to be promoted as Assistant and earned a further promotion on May 22, 1974 as Accountant. On the setting up of the Corporation, the appellant exercising his option came to be transferred as Accountant to the Corporation on November 9, 1976. Under the relevant conditions at transfer, he continued to be governed in the matter of recruitment and promotion by the relevent rules of the STC. He was promoted in an officiating capacity as Deputy Finance Manager Grade II on June 29, 1978 and he was put on probation after being promoted, as Deputy Finance, Manager Grade II on regular basis effective from February 5, 1979. The appellant applied for and obtained an advance in the amount of Rupees 16,050 for purchasing a plot of land on April 4, 1979 for which he executed the requisite agreement on April 4, 1979. The rules under which advance was obtained are styled as 'The Project and Equipment Corporation of India Ltd. House Building Advance (Grant and Recovery) Rules ('Rules for House Building Advance' for short) framed in exercise of the powers conferred upon the Board of Directors by the Articles of Association of the Corporation. The appellant also applied for and obtained an advance in the amount of Rs. 11,000/- for purchase of a new motor cycle on July 7. 1979. This advance is governed by what are styled as the Projects and Equipment Corporation of India Ltd. Conveyance Advance (Grant and Recovery) Rules ('Conveyance Advance Rules' for short).
(3.) In respect of the house building advance according to the respondent-Corporation, in view of Rule 10 (1) (c), (i) the appellant was required to utilise the amount drawn by him for the purpose for which advance was granted within two months of drawal and submit the documents evidencing the purchase of plot within the prescribed time failing which he was liable to refund at -once the entire amount together with interest to the Corporation. The agreement dated April 4, 1979 executed by the appellant also obligated him to utilise the advance for the purpose for which the same was sanctioned arid to produce the sale-deed for verification by the Corporation failing which the whole of the advance had, to be refunded with interest. It was alleged that the appellant neither utilised the advance for the purchase of plot nor, refunded the amount despite several reminders and ultimately on November 13 1979, a memorandum was served, upon him cautioning him that it he failed to refund the entire amount forthwith, disciplinary proceedings will be initiated against him, As the appellant failed to comply with the request made in the memorandum, his salary from November 7, 1979 as a whole was withheld for adjusting the amount of advance and the interest payable thereon. He was also charged penal interest for the default committed by him.;


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