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Employer May Invoke Civil Remedy To Recover Loss From Employee In Absence Of Specific Remedy In Employees Service Regulations
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Employer May Invoke Civil Remedy To Recover Loss From Employee In Absence Of Specific Remedy In Employees Service Regulations

11 Sep 2019 08:56 pm

A full bench of the Allahabad High Court has held that in absence of a specific remedy in Employees' Service Regulations, an employer may invoke civil liability to recover the loss incurred by him due to the actions of an employee.

The bench of Justices Sudhir Agarwal, Manoj Misra, and Rajendra Kumar-IV were adjudicating upon inconsistencies in Regulation 84 of U.P. Co-Operative Societies Employees Service Regulations, 1975 (Regulations 1975) and Rule 83 of U.P. Co-operative Federation Limited Karmchari Seva Niyamawali, 1980 (Rules 1980).

While Regulation 84 of Regulations 1975 confers power upon competent authority to impose 'any one' of the punishments prescribed therein, Rule 83 of Rules 1980 on the other hand prescribes imposition of "any one or more" of the punishments prescribed in Rule 83.

In the backdrop of this case, the Appellant, Pancham Ram Yadav was working as a storekeeper with the Respondent, U.P. Co-Operative Federation Ltd. He was dismissed from services by the Respondent after a theft was committed in the godown where the Appellant was posted and it was found that the locks of the godown were not broken by the thieves. Apart from dismissal, the Respondent also passed direction for recovery of Rs. 2,69,130.14 from the Appellant.

Pancham Ram Yadav vs. The U.P. Cooperative Federation Ltd.
Special Appeal no. 435 of 2008


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