J.s. Cheema v. State Of Haryana And Others

J.s. Cheema v. State Of Haryana And Others

(High Court Of Punjab And Haryana)

Civil Writ Petition No. 15867 of 2001 | 20-11-2013

Ajay Tewari, J.The claim made in the present petition is for interest on the delayed payment of retiral dues since admittedly no disciplinary proceedings or criminal proceedings were pending against the petitioner on the date of retirement. The petitioner retired on 31.01.2000. The gratuity was paid to him in two installments; the first one on 27.03.2001 and second one on 25.06.2001; pension was released after 9 months and the leave encashment was released after 6 months of the retirement.

2. With regard to the commutation of pension, learned counsel for the petitioner states that since the petitioner was granted full pension for the intervening period he would not be entitled to any interest for the delayed payment of commutation.

3. In the written statement, the plea taken is that the petitioner submitted his pension papers very late and that is why some delay was caused in the disbursal of his retiral benefits.

4. In my opinion, even if the assertion made in the written statement is presumed to be correct it would not disentitle the petitioner for claiming interest. The jurisprudential basis for grant of interest is the fact that one persons money has been used by somebody else. It is in that sense rent for the usage of money. If the user is compounded by any negligence on the part of the person with whom the money is laying it may result in higher rate because then it can also include the component of damages (in the form of interest). In the circumstances, even if there is no negligence on the part of the State it cannot be denied that money which rightly belonged to the petitioner was in the custody of the State and was being used by it.

5. Learned Assistant Advocate General has further argued that some reasonable time has to be granted for processing the papers and the requirement of law is not that strict that interest must be ordered from the first day after retirement. I find some weight in this assertion.

6. Learned counsel for the petitioner has argued that as per the Government instructions the period of three months has to be taken as maximum period within which the retiral benefits has to be released. After deducting those three months there is still a delay as mentioned above. In the circumstances, I hold the petitioner entitled to interest @ 8% p.a. on the delayed payment of retiral benefits. The interest will become due w.e.f. 01.05.2000. Let the interest on the above components i.e. gratuity, arrears of pension and leave encashment be computed @ 8% p.a. from 01.05.2000 till the date of payment and the same be released to the petitioner within a period of two months from the date of receipt of a certified copy of this order, failing which, the petitioner would be entitled to claim the same with interest @ 9% p.a.

Petition stands disposed of in the above terms.

Since the main case has been decided, the pending civil miscellaneous application, if any, also stands disposed of.

Advocate List
Bench
  • HON'BLE JUSTICE AJAY TEWARI, J
Eq Citations
  • 2014 (1) SCT 782 (P&H)
  • LQ/PunjHC/2013/4229
Head Note

TRAI — Telecom Service Providers — Gratuity — Interest on delayed payment of retiral dues — Gratuity was paid in two installments — First one on 27.3.2001 and second one on 25.6.2001 — Pension was released after 9 months and leave encashment was released after 6 months of retirement — Held, even if plea in written statement is presumed to be correct, it would not disentitle petitioner for claiming interest — Money which rightly belonged to petitioner was in custody of State and was being used by it — Government instructions provided that period of three months has to be taken as maximum period within which retiral benefits has to be released — After deducting those three months there was still a delay — Petitioner held entitled to interest @ 8% p.a. on delayed payment of retiral benefits — Interest to be computed @ 8% p.a. from 01.5.2000 till date of payment and the same to be released to petitioner within a period of two months from the date of receipt of a certified copy of this order failing which petitioner would be entitled to claim the same with interest @ 9% p.a.