The Patna High Court, while disposing of a petition filed for issuance of appropriate writ/writs upon the respondents to pay the petitioner pension and retiral benefits by taking into consideration the services rendered by her late husband, held that the disbursement of pension and other retirement benefits should not be treated as a matter of bounty but are valuable rights and property and any delay in settlement or disbursement thereof must be compensated with the penalty of payment of interest at the current market rate till actual payment to the employee.
Brief Facts:
The petitioner’s deceased husband was initially appointed on ad-hoc basis on 14.04.1962 in the Industries Department and to confirm the same, the petitioner has brought on record the communication dated 13.08.1975, giving the fact that services of the petitioner were transferred from the Industries Department to the government created Bihar State Handloom and Handicraft Corporation Limited. The petitioner's husband after joining the Corporation had died on 19.09.1982 working as Sales Manager in harness. The petitioner is aggrieved for non-payment of family pension, retiral dues, and other terminal benefits, as a result of the death of her husband.
Contentions of the Petitioner:
The Learned Counsel for the Petitioner submitted that the case of the petitioner on the facts, as well as, on law is the same, and family pension and other death-cum-retrial benefits, to which, she is entitled, are required to be paid to her by the respondents.
Contentions of the Respondent:
The Learned Counsel for the Respondent submitted that the fact is that services of the employees of the Industries Department including the petitioner and the two similarly situated employees, in whose case, the Apex Court had directed for payment of pensionary benefits, however, the case of the petitioner has been rejected on the ground that husband of the petitioner had died in harness in the year 1982, which doesn’t entitle her husband, who was appointed on 14.04.1962 and remained in government service till 22.09.1975, for retiral dues including full pension.
Observations of the Court:
The Court noted that the petitioner’s husband was a government servant from 14.04.1962 till his death and he was sent to a Corporation, and his entire service would be counted for all pensionary and other benefits which are due to the petitioner in accordance with law.
The Court observed that when the employer delays the release of Pensionary benefits, it is bound to pay interest on account of the delay. The Court said that the disbursement of pension and other retirement benefits should not be treated as a matter of bounty but are valuable rights and property and any delay in settlement or disbursement thereof must be compensated with the penalty of payment of interest at the current market rate till actual payment to the employee.
The decision of the Court:
The Patna High Court, disposing of the petition, held that the respondent is directed to give the family pension and other death-cum-retiral benefit, which is due to the petitioner within a period of three months from the date of communication of this order along with statutory interest @ 18%
Case Title: Shyam Pyari Devi v The State of Bihar & Ors.
Coram: Hon’ble Justice Purnendu Singh
Case no.: Civil Writ Jurisdiction Case No.14330 of 2012
Advocate for the Petitioner: Mr. Arun Kumar
Advocate for the Respondents: Mr. Subhash Pd. Singh
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