Himachal Pradesh High Court
Date Of Decision: 12 Th October vs State Of H.P & Ors on 12 October, 2023
Bench: Vivek Singh Thakur, Bipin Chander Negi
IN THE HIGH COURT OF HIMACHAL PRADESH, SHIMLA
CWPOA No.6321/2020
Date of Decision: 12 th October, 2023.
Rajinder Kumar .....Petitioner.
.
Versus
State of H.P & ors. .....Respondents.
Coram
The Hon'ble Mr. Justice Vivek Singh Thakur, Judge.
The Hon'ble Mr. Justice Bipin Chander Negi, Judge.
Whether approved for reporting?1 Yes.
For the Petitioner: Mr. Anand Sharma, Sr. Advocate with
Mr. Karan Sharma, Advocate.
For the Respondents: Mr. Anup Rattan, Advocate General with
Mr. Manoj Chauhan, Addl. Advocate General,
for respondents No.1 and 2.
r Mr. Vivek Sharma, Advocate, for respondent
No.3.
Vivek Singh Thakur, Judge (oral).
By way of this petition, petitioner has approached this Court
seeking direction to the respondents for releasing him pensionary
benefits i.e. leave encashment and gratuity.
2. Admittedly, petitioner had joined the services in Municipal
Council, Dalhousie, District Chamba, H.P, on 1.9.1981 and retired as
Junior Assistant on 31.3.2015.
3. It is also undisputed that the petitioner was eligible for
encashment of Earned Leave to the tune of Rs.4,62,849/-, out of which,
Rs.2,00,000/- was disbursed to the petitioner on 13.7.2016 and
remaining amount of Rs.2,62,850/- has been paid during March, 2019. It
is also admitted fact that petitioner was eligible for gratuity worth of
Rs.7,63,703/- and payment thereof has been made in installments by
Whether reporters of Local Papers may be allowed to see the judgment? Yes.
paying to Rs.2,00,000/-, Rs.1,40,000/- and Rs.1,00,000/- during June
2018, February 2022 and May 2022. The balance amount of
Rs.3,23,703/-, has been paid during September, 2023.
.
4. Learned counsel for the petitioner submits that though entire
gratuity and leave encashment amount has been paid to the petitioner,
however, there is inordinate delay in making payment and, therefore, he
has prayed to award interest for delayed payment.
5. 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."
6. 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.
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, petitioner is 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 from two months after
date of retirement i.e. 1.6.2015 till the actual payment thereof. As the
amount has been paid in installments, the interest shall be calculated
.
accordingly and be paid on or before 31st January, 2024.
12. In view of above, petition is disposed of, so also pending
application(s), if any.
(Vivek Singh Thakur)
Judge
(Bipin Chander Negi)
Judge
12th October,2023
(CS)
