As per case facts, a retired Headmistress's increments were cancelled and alleged excess salary recovered by management, after she submitted revised pay fixation proposals, which she argued were statutory duties ...
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IN THE HIGH COURT OF JUDICATURE AT BOMBAY
NAGPUR BENCH, NAGPUR
WRIT PETITION NO. 4726 OF 2023
1. Smt. Megha w/o Nandkumar Deshmukh,
Aged about 59 years, Occupation :
Retired Head mistress, Smt. Ashatai Borde
Secondary School, Borgaon Manju,
Resident of Borgaon Manju, Tahasil and
District Akola
... PETITIONER
...VERSUS…
1. State of Maharashtra,
Department of School Education and
Sports, through its Principal Secretary,
Mantralaya Mumbai 32
2. Director of Education (Secondary and Higher
Secondary) Directorate of Maharashtra State
Secondary and Higher Secondary Education,
Central Building, Dr. Anne Bezant Road, Pune-411001.
3.Deputy Director of Education
Amravati Division, Amravati
4.Education Officer, (Secondary) Zilla
Parishad, Akola
5.Indra Shikshan Prasarak Mandal, a
Society registered under the provisions
of Bombay Public Trust Act, bearing
Registration No.Mah./1751 represented
through its Secretary, having its Office
at Borgaon Manju, Tahsil and District Akola
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6.Smt. Ashatai Borde Secondary School,
Borgaon Manju, Tahasil and District
Akola through its Head Master
7.Accountant General (A&E)-II,
Maharashtra, Nagpur, Civil Lines,
Nagpur
...RESPONDENTS
---------------------------------------------------------------------------------------------
Dr. S. Y. Deopujari, Advocate for petitioner
Mrs. D. I Charlewar, AGP for respondent(s)/State
Mr. A. B. Patil, Advocate for respondent nos. 5 and 6.
---------------------------------------------------------------------------------------------
CORAM :SMT. M.S. JAWALKAR AND
NANDESH S. DESHPANDE, JJ.
RESERVED ON : 04
th
MARCH , 2026.
PRONOUNCED ON : 02
nd
APRIL, 2026.
JUDGMENT (PER : NANDESH S. DESHPANDE, J.)
1.Rule. Rule made returnable forthwith. Heard finally with the
consent of the parties.
2.The petitioner has filed the present writ petition challenging
the order dated 25.06.2021 and the order dated 14.02.2022 passed
by Respondent No. 5/Management, permanently cancelling the
increments due and payable to the petitioner from July 2016 to
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June 2020 and directing the petitioner to deposit the difference in
salary allegedly received in excess into the Government Exchequer.
3.The facts giving rise to the present writ petition, in brief, are
as under:
(i)The petitioner was appointed on a clear vacant post of
Assistant Teacher on probation for two years by order dated
05.07.1993 and was thereafter made permanent, which
appointment was duly approved by the Education Officer
(Respondent No. 4).
(ii)The petitioner was initially appointed as an Assistant Teacher
in Respondent No. 6 — a Government-recognised, grant-in-aid
secondary school at Borgaon Manju, Akola, run by Respondent No.
5, vide order dated 30.07.1990, confirmed on a clear vacant post on
05.07.1993, and promoted as Headmistress by order dated
01.10.1995 with the approval of the Education Officer. Pursuant to
the Government Resolution dated 22.02.2019 implementing the 7th
Pay Commission recommendations with effect from 01.01.2016, the
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petitioner submitted a proposal dated 28.02.2019 for fixation of her
revised pay to Respondent No. 4 — the Education Officer, which
was duly endorsed by the Secretary of Respondent No. 5 and the
Accounts Officer, Education Department, Akola, and was thereafter
approved by Respondent No. 4. Accordingly, the petitioner received
her salary in the revised pay scale with increments from July 2016
to July 2020.
(iii)Respondent No. 5 issued a show cause notice dated
18.05.2021 alleging misconduct against the petitioner on two
counts — (1) issuance of a letter dated 20.08.2020 in the matter of
the caste claim of Mr. S.D. Bais, and (2) submission of salary
proposals of 13 employees to the Education Department without the
prior sanction of the Management — both of which were in fact
statutory duties of the petitioner as Headmistress under Schedule I,
Item 3(f), (g), and (h) of the M.E.P.S. Rules, 1981. Despite a
detailed reply dated 02.06.2021, Respondent No. 5, by resolution
dated 15.06.2021 and the impugned order dated 25.06.2021,
permanently cancelled all increments payable to the petitioner with
effect from 01.07.2021 and directed the recovery of the difference
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in salary from July 2016 to June 2021 into the Government
Exchequer. The petitioner preferred an appeal before Respondent
No. 3 — Deputy Director of Education, Amravati Division, on
15.07.2021; however, no decision has been communicated till date.
(iv)Without issuing any fresh show-cause notice or affording any
opportunity of hearing, Respondent No. 5, again by resolution
dated 25.01.2022 and the impugned order dated 14.02.2022,
permanently cancelled all increments of the petitioner from July
2016 to July 2020 and further directed the deposit of the alleged
excess salary into the Government Exchequer. The petitioner filed
an appeal under Rule 28(5)(a) of the M.E.P.S. Act, 1977, before
Respondent No. 2 — Director of Education, on 05.04.2022, which
remains unattended. Upon retirement on 30.09.2022, the pension
and gratuity of the petitioner were calculated at a reduced pay
scale, ignoring increments for the period from July 2016 to June
2022, and a recovery of Rs. 7,96,717/- has been proposed from her
retirement benefits, all as a direct consequence of the impugned
orders passed by Respondent No. 5 without any authority under the
M.E.P.S. (Conditions of Service) Act, 1977, and the Rules of
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1981.All these actions / orders are challenged in the present
petition.
4.We have heard Shri S.Y. Deopujari, learned counsel for the
Petitioner, learned Assitant Government Pleader Mrs. D.I. Chanewar
for Respondent Nos. 1 to 4 and 7, and Shri A.B. Patil, learned
counsel for Respondent Nos. 5 and 6.
5.Shri S.Y. Deopujari, learned counsel for the petitioner,
submits that the actions attributed to the petitioner do not
constitute "misconduct" under Rule 28(5)(a) of the M.E.P.S. Rules,
1981, as the submission of salary bills, increment proposals, and
issuance of the letter dated 20.08.2020 were strictly in discharge of
her statutory duties as Headmistress under Schedule I, Item 3(f),
(g), and (h) of the M.E.P.S. Rules, 1981, and therefore the
impugned orders are liable to be quashed and set aside.
6.He further submits that Rule 29(2) of the M.E.P.S. Rules,
1981, empowers the Management to withhold an increment for a
period not exceeding one year only, and there is no provision under
the M.E.P.S. Act, 1977, or the Rules of 1981 to permanently cancel
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increments retrospectively for five consecutive years. Respondent
No. 5 has therefore acted wholly beyond its statutory powers.
7.He further urged that the direction to recover the difference
in salary and deposit the same into the Government Exchequer is
equally unsustainable, as Rule 29(3) of the M.E.P.S. Rules, 1981,
permits recovery only for pecuniary loss caused to the institution. In
the present case, no such loss was ever alleged or demonstrated by
Respondent No. 5, the increments having been duly sanctioned and
paid by the Education Department itself.
8.Learned counsel further contends that both the impugned
orders are passed in flagrant breach of the principles of natural
justice, as no opportunity of personal hearing was afforded to the
petitioner before passing either order, and the order dated
14.02.2022 was passed without even issuing a fresh show cause
notice, in clear violation of the principle of audi alteram partem and
Article 14 of the Constitution of India.
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9.It is also contended that the proposal for revised pay fixation
was submitted with the knowledge, endorsement, and certification
of the Secretary of Respondent No. 5 and was duly approved by
Respondent No. 4 — the Education Officer; neither Respondent No.
3, Respondent No. 4, nor the Accounts Officer raised any objection
at any point, and the unilateral retrospective cancellation of
increments lawfully sanctioned under the Government Resolution
dated 22.02.2019 is therefore wholly without authority.
10.He further points out that the disciplinary proceedings were
initiated and concluded without obtaining the concurrence of
Respondent Nos. 2, 3, or 4, who are the statutory supervisory
authorities over the aided school, and had there been any illegality
on the part of the petitioner, these authorities, being the sanctioning
authority for salaries, would have themselves initiated recovery;
their inaction fortifies the illegality of the impugned orders.
11.It is submitted that, as a direct consequence of the illegal
orders of Respondent No. 5, the pension and gratuity of the
petitioner, upon her retirement on 30.09.2022, have been
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calculated at a reduced pay scale, ignoring increments from July
2016 to June 2022. Furthermore, a recovery of Rs. 7,96,717/- is
being sought from her retirement benefits, which is manifestly
arbitrary and in violation of Articles 14 and 21 of the Constitution
of India.
12.The learned AGP appearing on behalf of Respondent No. 7 —
Office of the Accountant General (A&E)-II, Maharashtra, Nagpur,
submits that the role of the answering Respondent is limited to
scrutiny of pension proposals received from the Pension Sanctioning
Authority and the authorization of pensionary benefits if found
admissible; the office acts not on its own volition but solely on the
basis of proposals forwarded in the prescribed format by the
concerned Pension Sanctioning Authority.
13.He further submits that the pension proposal was received
from Respondent No. 4-Education Officer (Secondary), Zilla
Parishad, Akola, vide letter dated 22.06.2022; during scrutiny, it
was noticed that increments of the petitioner from 01.07.2016 until
retirement stood cancelled as per entries in the service book,
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resulting in a proposed recovery of Rs. 7,96,717/- from pensionary
benefits, to which the petitioner herself had furnished a duly signed
consent. It is further submitted that the reliefs sought by the
petitioner are purely administrative in nature, falling entirely within
the purview of Respondent No. 4 — Pension Sanctioning Authority,
and any further action can only be taken upon receipt of
communication from the said authority in accordance with the
M.C.S. (Pension) Rules, 1982; no action is presently pending on the
part of the answering Respondent.
14.Per contra, the learned counsel for Respondent No. 5 submits
that the present writ petition is liable to be dismissed both on
maintainability as well as on merits. He submits that the petitioner
has an alternate and efficacious remedy under the M.E.P.S. Act,
1977, and the Rules of 1981, and has in fact already availed one
such remedy by preferring an appeal before the Deputy Director of
Education, Amravati, which is still pending; the petition is therefore
liable to be rejected on this sole preliminary ground.
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15.He further submits that the petitioner's service record is far
from unblemished pursuant to a direction of the Divisional
Secretary, Maharashtra State Secondary and Higher Secondary
Education Board, dated 24.05.2004, when one increment of the
petitioner was withheld for one year on account of proven
misconduct; that, in yet another instance, the petitioner unilaterally
issued an order dated 20.08.2020 placing Mr. S.D. Bais on a
supernumerary post without any authority or approval of the
Management, despite the issue of his caste validity certificate being
sub-judice before the Caste Scrutiny Committee; and that, further,
without the knowledge or consent of the Management, the
petitioner unilaterally applied increments to 13 employees,
including herself, in contravention of standard procedure,
compelling Respondent No. 5 to issue a show cause notice dated
18.05.2021, to which the replies of the petitioner dated 02.06.2021
and 22.09.2021 were found wholly unsatisfactory.
16.It is also contended that the audit report for the period 2012-
2013 to 2019-2020, prepared by the Accounts Officer, Education
Department, Akola, independently found that the mandatory
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procedure for grant of increments to the Head of the institution was
not followed, and the increments applied by the petitioner were
liable to be recovered. It is submitted that the petitioner has failed
to produce any document evidencing prior approval or consent of
the Management before applying increments to herself, and the
increment certificates signed and submitted by the petitioner under
her own signature conclusively establish intentional violation of the
mandatory procedure; therefore, no interference in writ jurisdiction
is warranted.
17.We have considered the contentions canvassed by the learned
counsel for the respective parties, and with their assistance also
gone through the record.
18.The preliminary objection, as far as the maintainability of the
petition is concerned, has to be decided first. The learned counsel
for respondent No. 5, in support of the preliminary objection, has
placed on record the Judgment of this Court in Writ Petition No.
5607 of 2010, decided by this Court on 13.06.2012. By drawing
support from the said judgment, the learned counsel for respondent
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Nos. 5 and 6 submits that in an identical set of facts, this Court has
held that an appeal is provided to the Deputy Director in terms of
the MEPS Rules. This was a case where there was a withholding of
two increments and permanent denial of the next time-bound
promotion. He therefore submits that such an alternate remedy is in
fact available to the petitioner, to which she can be relegated.
19.Responding to the above, the learned counsel for the
petitioner places reliance on the judgment of the Hon’ble Supreme
Court in Whirlpool Corporation v. Registrar of Trade Marks,
Mumbai, reported in (1998) 8 SCC 1. By placing reliance on
paragraph 13 of the said judgment, the learned counsel for the
petitioner submits that the existence of an alternate remedy is a
rule of self-restraint and that it would not deter this Court from
exercising jurisdiction under Article 226 of the Constitution of
India. Paragraph 13 of the said judgment reads as under :
“13.Under Article 226 of the Constitution, the High
Court, having regard to the facts of the case, has a
discretion to entertain or not to entertain a writ petition.
But the High Court has imposed upon itself certain
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restrictions one of which is that if an effective and
efficacious remedy is available, the High Court would not
normally exercise its jurisdiction. But the alternative
remedy has been consistently held by this Court not to
operate as a bar in at least three contingencies, namely,
where the writ petition has been filed for the enforcement
of any of the Fundamental Rights or where there has been
a violation of the principle of natural justice or where the
order or proceedings are wholly without jurisdiction or the
vires of an Act is challenged. There is a plethora of case-
law on this point but to cut down this circle of forensic
whirlpool, we would rely on some old decisions of the
evolutionary era of the constitutional law as they still hold
the field.”
20.He also places reliance on the judgment of Andi Mukta
Sadguru Shree Muktajee Vandas Swami Suvarna Jayanti Mohatsav
Smarak Trust v. V. R. Rudani, & Ors., reported in (1989) 2 SCC
691, to canvass the ambit and scope of Article 226 of the
Constitution of India.
21.We have gone through the said judgment. In view of the
authoritative pronouncement of the Hon’ble Apex Court in
Whirlpool Corporation (supra) we are of the considered opinion
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that the existence of an alternate remedy, being a rule of self-
restraint, would not operate as a bar in respect of three
contingencies, namely, (i) the enforcement of any of the
Fundamental Rights; (ii) a violation of the principles of natural
justice; or (iii) where the order or proceedings are wholly without
jurisdiction. If the impugned orders are viewed on the touchstone of
these authoritative pronouncements of the Hon’ble Apex Court, we
are of the considered opinion that there was no power vested in the
management to stop the increments, which is the subject matter of
challenge. The action of the management, being an excess of
power, renders it wholly without jurisdiction. We, therefore,
proceed to entertain the present petition on merits.
22.As can be seen from the impugned order, the same provides
for the stoppage of increments, and the only reason, as spelt out in
the order, is that the petitioner, without obtaining any resolution of
the Managing Committee, sent a proposal for increments to the
concerned Education Officer. Therefore, the action was taken in
accordance with Rule 28(5) of the Maharashtra Employees of
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Private Schools (Conditions of Service) Act, 1977 and the Rules of
1981.
23.The scheme of the MEPS Act and Rules has fallen for
consideration of this Court time and again. In the judgments of this
Court in Writ Petition No. 5067/2010, relied upon by the learned
counsel for the respondent, this Court had an occasion to consider
the entire scheme of the MEPS Act and Rules. After considering the
said scheme, this Court stated that the Act and Rules constitute a
complete code in the matter of discipline and conduct. The
management, therefore, cannot go beyond the procedure prescribed
thereunder. Rule 29 and Rule 31, if read conjointly, make it explicit
that the language thereof is very specific, employing the singular
number, i.e., the word used is “increment” and not “increments.”
The use of the prefix “an” or the verb “is” in conjunction with it also
emphasizes this fact. Punishment of withholding only one
increment is therefore envisaged by these Rules. Against such a
minor penalty, an appeal lies before the Deputy Director; for a
major penalty, an appeal lies before the School Tribunal.
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24.Thus, in disciplinary matters, the 1977 Act and 1981 Rules
contain a self-sufficient and complete code. Hence, that
“completeness” cannot be allowed to be defeated by permitting the
management to impose some other adverse measure as punishment
or to invent/use it as such. Thus, it is explicitly clear that what is
contemplated as a penalty under Rule 31 (Sub-Rule 4) is
withholding an increment for a period not exceeding one year only,
and not more than that. Furthermore, Schedule I, framed under
Sub-Rule 22(1) of the said Rule, specifies the duties of the Head. As
per Sub-Rule 3, and more particularly Sub-Clause (f) thereof,
drawing annual increments of the employees on due dates, if
otherwise not withheld for a valid reason, is within the duties of the
Head. Thus, it is explicitly clear that what was done by the
petitioner was within the scope of her duties as Head of the
institution.
25.A further glaring fact is with regard to the pension. A deeper
look at the proposal for the revised pay of the petitioner submitted
to the Education Department reveals that the said proposals, apart
from bearing the signature of the petitioner, also bear the signature
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of the Secretary of the respondent management and have been
approved by the Accounts Officer of the Education Department.
Three such proposals are placed on record by the petitioner. It is
noteworthy that these have not been denied by the respondent
management in any of its affidavits-in-reply. It is therefore clear
that the petitioner was performing her duties as enjoined under the
statute and the rules framed thereunder. Thus, no fault can be
found with the action of the petitioner. As a necessary follow-up,
the impugned order cannot withstand the scrutiny of law. We,
therefore, pass the following order :-
ORDER
i)Writ petition is allowed.
ii)It is hereby declared that the resolution dated 15.06.2021,
passed by the Executive Committee of the respondent No. 5, and
the order dated 25.06.2021, passed pursuant to the said resolution,
as also the further resolution dated 25.01.2022 and the order dated
14.02.2022, are illegal and, therefore, are quashed and set aside.
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iii)The respondents are therefore directed to restore all the
increments cancelled by respondent No. 5, as also the pay scale of
the petitioner from July 2016 till her retirement, and to grant her
all consequential benefits arising therefrom.
iv)It is further directed that the respondents should revise the
pension and gratuity payable to the petitioner after her retirement
on the basis of the restored pay scale, after taking into
consideration the increments due and payable to the petitioner
from July 2016 till the date of her retirement, and pay the
difference between the present pension and the pension payable to
the petitioner after such recalculation within a period of two
months from the date of passing of this order.
v)The respondents are further directed to refund an amount of
Rs. 7,96,717/- deducted towards the recovery of excess salary paid
to her from her gratuity.
26.The Writ Petition is disposed of. Rule is made absolute in the
above terms.
(NANDESH S. DESHPANDE, J.) (SMT. M.S. JAWALKAR, J.)
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