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Orissa High Court
Narayan Prasad Mishra vs State Of Odisha And on 26 February, 2026
Author: Biraja Prasanna Satapathy
Bench: Biraja Prasanna Satapathy
IN THE HIGH COURT OF ORISSA AT CUTTACK
W.P.(C) No.2593 of 2026
Narayan Prasad Mishra .... Petitioner
Mr. S.P. Pati, Advocate
-versus-
State of Odisha and
Others .... Opposite Parties
Mr. P.P. Behera, ASC
CORAM:
JUSTICE BIRAJA PRASANNA SATAPATHY
ORDER
26.02.2026
Order No.
02. 1. This matter is taken up through Hybrid
Arrangement (Virtual/Physical) Mode.
2. Heard learned counsel for the parties.
3. Pursuant to order dated 04.02.2026, learned
Addl. Standing Counsel produced the instruction
provided by the Department. The same be kept in
record.
3.1. Basing on the instruction, it is contended that
with regard to payment of interest on the ground of
delayed payment of the gratuity amount, the matter is
under process and necessary action will be taken in
ventilating the grievance of the petitioner, as made in
the Writ Petition.
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4. The present Writ Petition has been filed inter alia
with the following prayer:-
"Under the aforesaid circumstances, the
petitioner humbly prays that this Hon'ble Court may
graciously be pleased to,
i) direct the State opp. parties/authorities to pay
the petitioner the interest @7% on the Gratuity
amounts of Rs.9,35,170/- to the petitioner for delayed
payment from its due date after retirement i.e from
01.06.2019 to till its actual payment on dated
18.06.2021, and to pay interest on withheld gratuity
of Rs. 69,400/- from 01.06.2019 to till its actual
payment on dated 27.11.2024, under Rule49(5)(a) of
OCS (Pension) Rules, 1992, within a stipulated period.
And
ii) Further the petitioner be paid with penal interest
for such administrative delay at the present bank
interest on such gratuity amounts as well as on
statutory interest amounts to be paid as per prayer no,
(i) above till its final payment,
iii) And pass such other order(s), direction(s) as
deem fit and proper to the facts and circumstances of
the case to give complete relief to the petitioner;"
5. Learned counsel for the petitioner contended that
even though petitioner retired from his service on
attaining the age of superannuation on 31.05.2018,
but his entitlement towards Gratuity, was kept
withheld till a sum of Rs.9,35,170/- was disbursed on
18.06.2021.
5.1. However, a sum of Rs.69,400/-, which was
illegally withheld from the gratuity amount, was paid to
the petitioner on dtd.27.11.2024. It is accordingly
contended that since admittedly the entire gratuity
amount was kept withheld which fall due on
01.06.2019 and the amount was released only on
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18.06.2021 and 27.11.2024 respectively, claim made
by the petitioner to pay interest in terms of the
provisions contained under Rule-49(5) of the
OCS(Pension) Rules, 1992, is a genuine and legitimate
one.
5.2. Opp. Party No.2 vide letter dated 30.10.2024
under Annexure-11, though directed Opp. Party No.3
to calculate and pay the interest as due and admissible
but instead of making the payment after making a
communication under Annexure-12, the same is yet to
be released in favour of the petitioner.
5.3. It is contended that since Opp. Party No.2
pursuant to the earlier order of this Court, has come to
the conclusion that, petitioner is eligible and entitled to
get the benefit of interest for such delayed payment of
the gratuity amount for the period from 01.06.2019 to
18.06.2021 for an amount of Rs.9,35,170/- and for the
period from 01.06.2019 to 27.11.2024, for an amount
of Rs.69,400/-, there was no requirement to issue the
letter under Annexure-12.
5.4. It is accordingly contended that appropriate
direction be issued to Opp. Party No.2 to release the
interest amount as due and admissible on the delayed
payment of the gratuity amount within a stipulated
time period.
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6. Basing on the instruction, learned Addl. Standing
Counsel contended that vide letter issued under
Annexure-12, the matter was referred to the Finance
Department and Finance Department when in the
relevant file vide Annexure-P/1, advised to release the
interest in favour of the petitioner and to recover the
same from the erring officials with due approval from
the Competent Authority, vide letter dated 17.11.2025,
Opp. Party No.2 has requested Opp. Party No.3 to
furnish the required information with regard to the
cause and duration of delay towards submission of
pension papers to this department, cause and duration
of delay towards furnishing of the Revised NDC for
release of withheld gratuity of the petitioner, the
amount of penal interest payable to the petitioner
towards the delayed sanction of the pension as well as
delayed release of the gratuity, names and destination
of the erring officials from whom the penal interest is to
be recovered along with justification for further follow
up action taken in the matter.
It is accordingly contended that after due
compliance of the queries raised in letter dated
17.11.2025, interest as due and admissible will be
released.
7. Having heard learned counsel for the parties,
considering the submissions made and since it is not
disputed that petitioner was paid with the gratuity
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amount with delay as indicated hereinabove and the
same is also an admitted fact, this Court while
disposing the Writ Petition, directs Opp. Party Nos.2
and 3 to release the interest after making due
calculation within a period of 6 (six) weeks hence in
favour of the petitioner.
7.1. It is however open for the State authority to take
appropriate step for recovery of the interest to be paid
to the petitioner from the erring officials, for whose
latches the matter got delayed in accordance with law.
8. The Writ Petition stands disposed of accordingly.
(Biraja Prasanna Satapathy)
Judge
Basudev
Location: High Court of Orissa, Cuttack
Date: 05-Mar-2026 18:07:22
