Cuttack, Dec. 20: Orissa High Court today issued notices to the Centre and the state governments on a petition challenging Union tourism ministry’s directive to Institute of Hotel Management (IHM), Bhubaneswar, to pay Rs 33.5 lakh towards retirement benefits to its principal Malik M. Altaf for the service rendered by him as head of department at IHM, Srinagar.

The ministry had issued the direction to the principal IHM, Bhubaneswar, in November saying that IHM, Srinagar, is not in a position to remit the retirement benefits of Altaf, principal IHM, Bhubaneswar.

The IHM, Bhubaneswar, should settle the pro-rata retirement benefits of Altaf.

The IHM, Srinagar, will remit the pro-rata retirement benefits amounting to Rs 33,51,171 to IHM, Bhubaneswar in 2014-15, the ministry had said.

Altaf was given “fresh appointment” as the principal on September 11, 2011, following an advertisement by IHM, Bhubaneswar.

The institute had invited applications for the post from candidates having at least three years experience as head of the department in an IHM or at least 20 years experience in teaching. His retirement from service at IHM, Bhubaneswar, is due on December 31, 2013.

The petition, filed by Adhiraj Patnaik 62, a former senior lecturer at IHM, Bhubaneswar, alleged that order passed by the tourism ministry directing IHM, Bhubaneswar, for disbursement of Rs 33, 51,171 is “illegal” and “liable to be quashed”.

“The division bench of Justice Pradip Mohanty and Justice Debabrata Dash, before which the petition came ordered for notices being issued to the secretary ministry of tourism, additional director general ministry of tourism and state tourism department secretary-cum-chairman of IHM, Bhubaneswar,” petitioner counsel Sashi Bhusan Jena, told The Telegraph.

The matter has been posted for hearing after the court reopens after winter vacation on January 2.

“Unless either Government of India or IHM, Srinagar bears the burden of Altaf’s pro-rata pension amounting to Rs 33,51,171 it will be a heavy financial burden on IHM, Bhubaneswar, and will ultimately adversely affect other employees’ interest”, the petitioner said, while seeking the court’s intervention.

The petition has sought interim stay on the operation of the direction of the order and a probe into the “circumstances under which the illegal order has been passed”.

According to the petition, IHM, Bhubaneswar, is run and managed by its local management does not get any aid from the tourism ministry.

IHM, Bhubaneswar, and IHM, Srinagar, are two separate institutes, registered separately and no institute is a branch of the other.

Ministry of tourism of government of India and National Council of Hotel Management regulate and control all the institutes to ensure their functional uniformity but there is no pension fund.

At present IHM, Bhubaneswar, pays around Rs 37 lakh per month towards 17 pensioners.

In addition to this gratuity, commuted value of pension, leave salary, etc, are also paid from the annual revenue earned by the institute. There are currently, 42 employees who have opted for pension scheme and 20 employees will retire during the next five years for which IHM, Bhubaneswar has to pay large amount of money towards their pension benefits.