Hari Shanker Agrawal vs Union Of India Thru. Secy. ...
2023 Latest Caselaw 8739 ALL

HIGH COURT OF JUDICATURE AT ALLAHABAD, LUCKNOW BENCH
 
 

?Court No. - 18
 

 
Case :- WRIT - A No. - 2432 of 2023
 

 
Petitioner :- Hari Shanker Agrawal
 
Respondent :- Union Of India Thru. Secy. Ministry Communication New Delhi And 2 Others
 
Counsel for Petitioner :- Deo Prakash Srivastava
 
Counsel for Respondent :- A.S.G.I.,Anand Dwivedi,Krishna Chandra Srivastava
 

 
Hon'ble Alok Mathur,J.

Memo of appearance filed by Sri Anand Dwivedi on behalf of opposite party no.1 is taken on record.

Heard learned counsel for the petitioner and Shri Krishna Chandra Srivastava, learned counsel appearing for respondent no.3 and Sri Anand Dwivedi for respondent No.1.

Contention of learned counsel for the petitioner is that although the petitioner has been paid the leave encashment, the interest on delayed payment has not been paid and thus, he is entitled to interest from the date of retirement i.e. 31.01.2018 till actual payment on 20.02.2023.

Learned counsel for the respondent argues that a circular has been issued by respondent no.2 saying that no interest shall be paid on the delayed payment of leave encashment as it is not a statutory payment.

In the light of the said, learned counsel for the respondent argues that no interest is payable as demanded by the petitioner.

Replying to the objection raised by the counsel for the respondent, the petitioner has drawn attention of this Court to the information received by him under Right to Information on 22.08.2022 whereunder Clause 5, it is clear been stated that payment has not been made to the petitioner "due to financial crisis, it is not possible to tell the exact date of payment. Payment will be made as soon as funds become available." From the above, it is clear that there was no infirmity in the claim raised by the petitioner and only because of the financial crisis, the payment was not made and consequently, the delay is attributable only to the respondents.

Learned counsel for the petitioner places reliance on the judgment of this Court in the case of Nand Lal v. Indian Telephone Industries Limited and 2 Ors. (Writ - A No.31490 of 2016) decided on 09.03.2018 wherein a similar issue was considered and decided by this Court and the interest was held to be payable on account of delayed payment.

It is informed by learned counsel for the respondent that in a similar case, this Court in Writ Petition No.20927 (SS) of 2021 has called for a counter affidavit. It is further informed that SLP(C) No.004379 of 2019 against a similar order passed by this Court, is pending before the Hon'ble Supreme Court.

Considering the fact that the decision has been taken only on the ground that the dues of leave encashment are not statutory dues, as such, no interest is payable, the same is liable to be rejected on the simple analogy that interest is a natural accreditation of capital. Even otherwise, the payment of leave encashment flows out of the decisions taken and thus, cannot be said that it has no flavour of statutory enactment.

Thus, following the judgment in the case of Nand Lal (Supra), the writ petition is allowed.

Respondents are directed to ensure payment of interest at the rate of 7% per annum on the leave encashment for the period 31.01.2018 till 20.02.2023.

The said interest shall be paid to the petitioner within a period of four months.

Order Date :- 24.3.2023

Saurabh Yadav/-