CUTTACK: In a significant ruling, the Orissa High Court has held that promotion granted to an employee cannot be withdrawn after retirement.
A single judge bench of Justice Biraja Prasanna Satapathy delivered the judgment, while adjudicating a petition filed by Sagar Keshari Nayak, a former employee of the Cuttack Urban Cooperative Bank.
Nayak had joined the bank as a junior assistant on November 7, 1990, and was serving as a senior assistant (Grade V) when the departmental promotion committee recommended his elevation to assistant manager (Grade IV) on June 22, 2022. The promotion was formally granted on June 23, 2022, with retrospective effect from June 1, 2022. Nayak joined the promotional post on June 29, 2022, and his salary was accordingly fixed.
He retired the next day, on June 30, 2022, upon attaining the age of superannuation. However, in a subsequent development, the bank withdrew his promotion through an order dated August 26, 2022, based on a later decision of the appointment committee dated August 25, 2022.
The bank also directed recovery of the alleged excess salary paid to him. Challenging this action, Nayak approached the high court in September 2022.
Justice Satapathy observed that by the time the promotion was withdrawn, Nayak had already retired while holding the promotional post. “Since by the time such benefit was withdrawn, petitioner had already retired while holding the promotional post.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. He categorically ruled that Nayak was entitled to all benefits associated with the promotional post, including retirement benefits.
The bank had argued that the earlier promotion was illegal and contrary to service rules, and that Nayak, being on probation, had no vested right to the post.
It further cited financial constraints and administrative concerns behind the withdrawal of promotions granted to multiple employees at the time when additional district magistrate (general), Cuttack was in-charge of the administration of the management of the bank.