HC Bars Deduction of Advances and GST from Retiral Dues

Case Details: Satish Kumar Verma vs. Shri Kamta Prasad, Executive Director, U.P. State - [2026] 184 taxmann.com 79 (HC-Allahabad)

Judiciary and Counsel Details

• Rohit Ranjan Agarwal, J.
• Kalpnath Tripathi & Rajesh Shankar Srivastava for the Applicant.
• Utkarsh Birla for the Respondent.

Facts of the Case

In the instant case, the applicant filed a writ petition alleging non-compliance with the order passed by the Writ Court directing the Corporation to pay the retirement dues and salaries of its employees.

In the compliance affidavit filed by the Corporation, it was stated that the total amount payable to the applicant towards retiral dues was Rs. 15.71 lakhs. Out of this, Rs. 2.90 lakhs and Rs. 28.9 thousand were deducted under the heads ‘Protsahan Agrim’ and ‘Tyohar Agrim’. Further deductions were made towards GST and audit recovery, resulting in a total deduction of Rs. 4.55 lakhs from the retiral dues of the applicant.

It was noted that there is no provision for deducting ‘Protsahan Agrim’, ‘Tyohar Agrim’, or GST from the retirement dues of an employee of the Corporation.

High Court Held

The High Court observed that the amount received by the State Government through a soft loan for payment of retirement dues had not been properly disbursed to the employees, and that the Corporation was also not complying with the order passed by the Writ Court.

The High Court held that, as a last opportunity, one month’s time was granted to the Corporation to clear the entire retiral dues, without making any deduction from the amount payable to its employees, along with arrears of salary.