Punjab-Haryana High Court
Renu Puri vs State Of Punjab And Others on 5 August, 2024
Author: Harsimran Singh Sethi
Bench: Harsimran Singh Sethi
Neutral Citation No:=2024:PHHC:100290
266 IN THE HIGH COURT OF PUNJAB AND HARYANA
AT CHANDIGARH
CWP-24835-2023 (O&M)
Date of Decision : 05-08-2024
RENU PURI ........Petitioner
VERSUS
STATE OF PUNJAB AND OTHERS
........Respondent(s)
CORAM: HON'BLE MR. JUSTICE HARSIMRAN SINGH SETHI
Present: Mr. Kuljit Singh, Advocate for
Mr. Peeyush Gagneja, Advocate for the petitioner.
Mr. Swapan Shorey, DAG Punjab.
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HARSIMRAN SINGH SETHI, J. (Oral)
In the present case, the grievance being raised by the petitioner
is that retiral benefits were not released to the petitioner upon her retirement
they were subsequently released and the petitioner is entitled for interest on
the delayed released of the pensionary benefits.
Learned counsel for the petitioner argues that the petitioner
retired on 31.01.2023 whereas, pensionary benefits were released in
November, 2023 hence, in view of the Full Bench of this Court in
A.S. Randhawa Vs. State of Punjab and others, 1997(3) SCT 468, in
case there is no impediment, the employee is entitled for the release of
pensionary benefits within a period of 2 months of the retirement failing
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which the employee will be entitled for interest hence, the respondents are
liable to be directed to pay interest for a period of 10 months from the
amount which was retained by them.
Notice of motion.
Mr. Swapan Shorey, DAG Punjab appears and accepts notice on
behalf of the respondent-State.
Learned counsel for the respondents submits that one all the
benefits have been released, no ground is made out for the grant of interest.
I have heard learned counsel for the parties and have gone
through the records of the present case with their able assistance.
As per the settled principle of law laid down by the Full Bench
of this Court in A.S. Randhawa Vs. State of Punjab and others, 1997(3)
SCT 468, has held that where there is an inordinate delay in the release of
the pensionary benefits of an employee and the delay is not justifiable,
employee will be entitled for interest. The relevant paragraph of said
judgment is as under:-
"Since a government employee on his retirement
becomes immediately entitled to pension and other benefits in
terms of the Pension Rules, a duty is simultaneously cast on the
State to ensure the disbursement of pension and other benefits
to the retirer in proper time. As to what is proper time will
depend on the facts and circumstances of each case but
normally it would not exceed two months front the date of
retirement which time limit has been laid down by the Apex
Court in M. Padmanabhan Nair's case (supra). If the State
commits any default in the performance of its duty thereby
denying to the retiree the benefit of the immediate use of his
money, there is no gainsaying the fact that he gets a right to be
compensated and, in our opinion, the only way to compensate
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him is to pay him interest for the period of delay on the amount
as was due to him on the date of his retirement."
Apart from this, a Coordinate Bench of this Court in J.S.
Cheema Vs. State of Haryana, 2014(13) RCR (Civil) 355, had held that an
employee will be entitled for the interest on an amount which has been
retained by the respondents without any valid justification. The relevant
paragraph of J.S. Cheema's case (supra) is as under: -
"The jurisprudential basis for grant of interest is the fact
that one person's money has been used by somebody else. It is
in that sense rent for the usage of money. If the user is
compounded by any negligence on the part of the person with
whom the money is lying it may result in higher rate because
then it can also include the component of damages (in the form
of interest). In the circumstances, even if there is no negligence
on the part of the State it cannot be denied that money which
rightly belonged to the petitioner was in the custody of the State
and was being used by it."
Once, the respondents themselves have released all the
pensionary benefits, it becomes clear that there is no impediment and the
delay is on the part of the respondents. Once the delay is on the part of the
respondents and the pensionary benefits of the petitioner were retained by
the respondents without any justification, the petitioner is held liable for
interest on the pensionary benefits which were released in November, 2023
@ 6% per from the date the pensionary benefits became due till the actual
date of payment
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Let the interest under this order be calculated and released to
the petitioner within a period of 8 weeks from the receipt of copy of this
order.
Present petition is disposed of in above terms.
Pending application, if any, also stand disposed off.
05-08-2024 (HARSIMRAN SINGH SETHI)
Sapna Goyal
JUDGE
NOTE: Whether speaking: YES/NO
Whether reportable: YES/NO
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