Punjab-Haryana High Court
Jage Ram vs State Of Haryana And Ors on 5 January, 2024
Author: Harsimran Singh Sethi
Bench: Harsimran Singh Sethi
Neutral Citation No:=2024:PHHC:000578
CWP-1662-2001 2024:PHHC:000578 1
IN THE HIGH COURT OF PUNJAB AND HARYANA
AT CHANDIGARH
(443) CWP-1662-2001
Date of Decision : January 05, 2024
Jage Ram .. Petitioner
Versus
State of Haryana and another .. Respondents
CORAM: HON'BLE MR. JUSTICE HARSIMRAN SINGH SETHI
Present: None for the petitioner.
Mr. Tapan Kumar Yadav, Deputy Advocate General, Haryana.
HARSIMRAN SINGH SETHI J. (ORAL)
1. In the present writ petition, the petitioner is claiming the grant
of interest on the delayed release of the pensionary benefits.
2. As per the averments made in the petition, the petitioner had
retired from service on 31.12.1995 but his pensionary benefits were not
released expeditiously due to which, the petitioner suffered prejudice and
the petitioner by way of the present petition, is seeking the grant of interest
on the delayed release of the pensionary benefits.
3. While issuing notice of motion on 02.02.2001, the following
order was passed by the Division Bench:-
" Petitioner is claiming interest on payment of
pensionary dues after his retirement on six heads mentioned in
paragraph 3 (wrongly typed as paragraph 2) of the writ
petition. Payment under the first four heads was made from
1 of 4
Neutral Citation No:=2024:PHHC:000578
time to time upto May, 1997. More than three years period
prescribed for limitation even for purpose of recovery by way
of civil suit has expired. We are, therefore, not inclined to
entertain the writ petition in respect of the said 4 heads of
claim. So far as the remaining two heads namely commutation
and gratuity are concerned, the claim for payment of interest is
still within limitation. To this limited extent, we would
entertain the petition."
4. As per the order reproduced hereinbefore, the claim of the
petitioner for the grant of interest on the commutation of pension and the
gratuity is to be considered by this Court.
5. In paragraph 3 of the petition (wrongly typed as paragraph 2),
the petitioner has mentioned that commutation of pension was released to
him on 13.02.1998 and the gratuity was released to him on 20.11.1998. The
said fact has been accepted by the respondents while filing the reply. The
respondents in their defence have mentioned that no due certificate was
issued to the petitioner by the Directorate on 06.03.1998 hence, the
pensionary benefits could not be released to him immediately upon the
retirement.
6. I have heard learned counsel for the respondents and have gone
through the record with his able assistance.
7. As per the settled principle of law settled by the Full Bench of
this Court in A.S. Randhawa Vs. State of Punjab and others, 1997(3) SCT
468, the retiral benefits are to be computed and released within a period of
two months from the date of the retirement, in case there is no impediment.
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
2 of 4
Neutral Citation No:=2024:PHHC:000578
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
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."
8. In the present case, nothing has come on record to show that
there was any impediment in the release of the pensionary benefits. The
only objection being taken by the respondents is that no due certificate was
received in the year 1998. It may be noticed that no due certificate is to be
issued by the Department concerned and if the same is withheld by the
employer without any valid justification, the employee cannot be prejudiced
hence, withholding of the pensionary benefits for the non-grant of no due
certificate, the liability to pay the interest cannot be escaped. Hence, the
petitioner is entitled for the grant of interest on the commutation of pension
as well as gratuity which has been released to him.
9. Further, a Coordinate Bench of this Court in of J.S. Cheema
Vs. State of Haryana, 2014(13) RCR (Civil) 355, has held that where an
amount belonging to an employee, has been retained and used by the
respondents, upon the release of the said amount, on a later date, the
interest has to be given. 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
3 of 4
Neutral Citation No:=2024:PHHC:000578
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."
10. Keeping in view the above, the present writ petition is allowed
qua the two components of the pensionary benefits i.e. commutation of
pension as well as gratuity. The petitioner is held entitled for the grant of
interest @ 6% per annum from the date the abovementioned two benefit
accrued till the actual payment of the same. Let the amount for which the
petitioner is entitled as interest be released to him within a period of eight
weeks from the receipt of certified copy of this order.
January 05, 2024 (HARSIMRAN SINGH SETHI)
harsha JUDGE
Whether speaking/reasoned : Yes/No
Whether reportable : Yes/No
Neutral Citation No:=2024:PHHC:000578
4 of 4
