Himachal Pradesh High Court
Ramesh Chand Chauhan vs Horticulture Produce Marketing ... on 4 November, 2023
Bench: Bipin Chander Negi
1
IN THE HIGH COURT OF HIMACHAL PRADESH, SHIMLA
CWP No.8242 of 2022, CWP No.972 of 2020, CWP
No.973 of 2020 and CWP No.1061 of 2020
.
Date of Decision : 04.11.2023
1. CWP No.8242 of 2022
Ramesh Chand Chauhan
...... Petitioner
Versus
Horticulture Produce Marketing Corporation (HPMC) and others
2. CWP No.972 of 2020
Nek Chand Sharma
to ......Respondents
...... Petitioner
Versus
Himachal Pradesh Horticultural Produce Marketing and
Processing Corporation Limited
......Respondent
3. CWP No.973 of 2020
Bhupinder Chauhan
...... Petitioner
Versus
Himachal Pradesh Horticultural Produce Marketing and
Processing Corporation Limited
......Respondent
4. CWP No.1061 of 2020
Bhim Singh Chauhan
...... Petitioner
Versus
Himachal Pradesh Horticultural Produce Marketing and
Processing Corporation Limited
......Respondent
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2
Coram:
.
The Hon'ble Mr. Justice Bipin Chander Negi, Judge
1
Whether approved for reporting? No
For the petitioner : Mr. V.S. Chauhan, Senior Advocate with
Mr. Rajul Chauhan, Advocate, for the petitioner
in CWP No.8242 of 2022.
Ms. Kamakshi Trilokta, Advocate, for the
petitioners in CWP Nos.972 of 2020, CWP
No.973 of 2020 and CWP No.1061 of 2020.
For the respondents : Mr. Amit Sharma and Mr. Inderjeet Singh
Narwal Advocates, for the Himachal Pradesh
r Horticultural Produce Marketing and Processing
Corporation Limited.
Mr. Jagmohan Chandel, Advocate, for
respondent No.4 in CWP No.8242 of 2022.
Bipin Chander Negi, Judge (oral)
The present petitions are being taken up together for disposal
since common questions of law are involved.
2. The limited grievance of the petitioners in the present petitions
pertains to release of retiral benefits. In all the cases, retiral benefits,
i.e., gratuity and leave encashment has been paid to the incumbents
subsequent to their dates of superannuation.
1 Whether reporters of Local Papers may be allowed to see the judgment?
3. The details with respect to the date of retirement of each
incumbent, date of release of gratuity and leave encashment are being
reproduced herein below:-
.
"A) Ramesh Chand Chauhan retired on 30.06.2019, Gratuity
amounting to Rs.7,16,303/- released on 6.2.2021 vide RTGS
dated 6.2.2021, Leave encashment amounting of
Rs.5,17,330 released on 3.7.2023 vide RTGS dated
3.7.2023.
B) Nek Chand Sharma retired on 28.2.2019, Gratuity
amounting to Rs.10,00,000/- released on 31.10.20 vide
RTGS dated 31.10.2020, Leave encashment amounting to
Rs.6,70,510/- released on 19.2.22 vide RTGS dated
19.2.22.
C)
Bhupinder Chauhan retired on 31.10.18, Gratuity
amounting to Rs.10,00,000/- released on 14.8.2020 vide
RTGS dated 14.8.2020, Leave encashment amounting to
Rs.8,58,880/- released on 14.8.20 vide RTGS dated
14.8.2020.
D) Bhim Singh Chatham retired on 28.2.19, Gratuity
amounting to Rs.9,28,512/- released on 3.10.20 vide RTGS
dated 3.10.2020, Leave encashment amounting to
Rs.8,04,710/- released on 3.10.20 vide RTGS dated
3.10.2020."
4. The aforesaid facts are not in dispute. It is well settled
preposition of law that pension and gratuity are no longer any bounty to
be distributed by the Government to its employees on their retirement,
but the same have become valuable rights and property in their hands
and any culpable delay in settlement and disbursement thereof must
be visited with the penalty of payment of interest at the current market
rate till actual payment.
5. It is not the case where delay has been caused on the part of
.
Government servant with respect to complying the procedure laid down
by the Government for processing the pension papers.
6. Rule 68 of the CCS (Pension) Rules, 1972, provides interest for
delayed payment of gratuity for delay in payment attributable to
administrative reasons or lapses, but not for failure on the part of
employee, interest shall be payable at the rate applicable to General
Provident Fund amount in accordance with instructions from time to
time. Relevant portion of Rule 68, reads as under:
"68. Interest on delayed payment of gratuity.
(1) In all cases where the payment of gratuity has been authorized later
than the date when its payment becomes due, including the cases of
retirement otherwise than on superannuation, and it is clearly
established that the delay in payment was attributable to administrative
reasons or lapses, interest shall be paid at the rate applicable to
General Provident Fund amount in accordance with the instructions
issued from time to time."
Provided that the delay in payment was not caused on account
of failure on the part of the Government servant to comply with the
procedure laid down by the Government for processing his pension
papers."
7. So far as payment of interest on delayed payment of leave
encashment is concerned, there is no such Rule. However, Supreme
Court in State of Kerala and others vs. M. Padmanabhan Nair,
(1985) 1 Supreme Court Cases 429, has held as under:-
"1. Pension and gratuity are no longer any bounty to be distributed
by the Government to its employees on their retirement but have
become, under the decisions of this Court, valuable rights and property
in their hands and any culpable delay in settlement and disbursement
thereof must be visited with the penalty of payment of interest at the
current market rate till actual payment.
2............The necessity for prompt payment of the retirement dues
to a Government servant immediately after his retirement cannot be over-
emphasized and it would not be unreasonable to direct that the liability to
pay penal interest on these dues at the current market rate should
.
commence at the expiry of two months from the date of retirement."
8. Similar view has been reiterated by the Supreme Court in case
titled Vijay L. Mehrotra vs. State of U.P & Ors. JT 2000 (5) SC, 171:
(2001) 9 SCC 687, as under:-
"3. In case of an employee retiring after having rendered service, it
is expected that all the payment of the retiral benefits should be
paid on the date of retirement or soon thereafter if for some
unforeseen circumstances the payments could not be made on the
date of retirement.
4. In this case, there is absolutely no reason or justification for not
making the payments for months together. We, therefore, direct the
respondent to pay to the appellant within 12 weeks from today
simple interest at the rate of 18 per cent with effect from the date of
her retirement, i.e. 31.8.1997 till the date of payments."
9. Accordingly, petitioners are held entitled for interest on the
gratuity at the rate applicable to General Provident Fund, as on date. It
has been communicated that at present, as per Notification issued by
the Finance (Regulations) Department, Government of Himachal
Pradesh, dated 17th July, 2023, rate of interest of General Provident
Fund is 7.1 % per annum.
10. The interest on the delayed payment of leave encashment shall
be at the rate of 6% per annum.
11. The aforesaid interest shall be payable to the petitioners from
two months after the date of retirement till the actual payment thereof.
12. Pending miscellaneous application(s), if any, shall also stand
disposed of.
.
( Bipin Chander Negi)
November 04, 2023 (KS) Judge
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