SPLAD/475/2025 of U.P. COOPERATIVE SUGAR FACTORIES FEDERATION LTD. THRU. MANAGING DIRECTOR Vs ARVIND PRATAP SINGH AND ANOTHER on 3 December 2025

1. There is a delay of 1 day in filing the special appeal.

2. Learned counsel for the respondents does not wish to file any objections to the application for condonation of delay. He says that the delay may be condoned.

3. Consequently, the delay in filing the special appeal is condoned. Application is allowed.

[order on appeal]

4. We have heard the learned counsel for the parties.

5. It is evident from the order of the writ Court that the case of the respondents is covered by the judgments rendered in Dev Prakash Tewari vs. Uttar Pradesh Cooperative Institutional Service Board, Lucknow and others, (2014) 7 SCC 260 and Bhagirathi Jena vs. Board of Directors, O.S.F.C. and others, (1999) 3 SCC 666.

6. It has been submitted by the learned counsel appearing for the appellant that the U.P. Cooperative Sugar Factories Federation Limited Employees Service Regulations, 1988 have been amended on 07.02.2025 and sub- Rule (5) and sub-Rule (6) have been added after sub-Rule (4) of the Regulation 51. In pursuance thereof, the disciplinary proceedings which were pending against the employees on the date of their retirement shall not be affected by the retirement of the employee and can be brought to a logical conclusion and the financial loss involved in such cases can be recovered from the retiral dues of the employee concerned as per rules. Versus Counsel for Appellant(s) : Jai Prakash Mishra Counsel for Respondent(s) : Amit Kumar Singh, C.S.C. U.P. Cooperative Sugar Factories Federation Ltd. Thru. Managing Director .....Appellant(s) Arvind Pratap Singh And Another .....Respondent(s)

7. The writ Court has considered this argument and has observed that since the amendment came into force only on 07.02.2025, on the date on which it was notified, it is prospective in nature and does not apply to employees who had retired earlier. The respondents had retired way back on 31.07.2020. The amended rules cannot apply in this case. The continuation of the employee after his retirement was therefore found to be vitiated.

8. Learned Counsel for the appellant has placed reliance upon the order passed in Special Appeal Defective No.267 of 2024 : U.P. Cooperative Sugar Factories Federation Ltd. Lko. Thru. Its Managing Director vs. Om Prakash Rai and Another, dated 08.05.2024, by a Co-ordinate Bench of this Court.

9. We have carefully gone through the order and find that it relates to the question of surcharge under Section 68 of the U.P. Cooperative Societies Act, 1965 (hereinafter referred to as "Act, 1965"), for which limitation is prescribed under the proviso to Sub-Section (1) of Section 68 of the Act, 1965. The question of retirement is irrelevant so far as the application of Section 68 of the Act, 1965 is concerned. The Court had granted interim relief to the appellant, U.P. Cooperative Sugar Factories Federation Ltd., while condoning the delay in filing the appeal.

10. We find that in the present case, the appellant has not pleaded the ground of Section 68 of the Act, 1965 being applicable; therefore, placing reliance upon an interim order granted in Special Appeal Defective No.267 of 2024 is untenable.

11. We find no good ground to show interference in the order of the writ Court. The special appeal stands dismissed.

12. It will always be open for the appellant to take appropriate steps under Section 68 of the Act, 1965 against the delinquent employee who has not retired. December 3, 2025 Shubhankar SPLAD No. 475 of 2025 2 (Amitabh Kumar Rai,J.) (Mrs. Sangeeta Chandra,J.) Digitally signed by :- SHUBHANKAR THAKUR High Court of Judicature at Allahabad, Lucknow Bench