Punjab-Haryana High Court
Kuldip Singh vs State Of Punjab And Others on 4 July, 2024
Neutral Citation No:=2024:PHHC:082755
IN THE HIGH COURT OF PUNJAB AND HARYANA AT
CHANDIGARH
238
CWP-24650-2022
Date of decision : 04.07.2024
Kuldip Singh ...Petitioner
V/S
State of Punjab and others ....Respondents
CORAM : HON'BLE MR. JUSTICE NAMIT KUMAR
Present: Mr. Nitesh Singla, Advocate for the petitioner.
Ms. Saguna Arora, A.A.G. Punjab.
Mr. G.S. Bajwa, Advocate for respondent No.4.
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NAMIT KUMAR, J. (ORAL)
1. The petitioner has filed the instant writ petition under
Articles 226/227 of the Constitution of India, seeking a writ of
mandamus directing the respondents to release the retiral benefits i.e.
gratuity and leave encashment of the petitioner along with interest @
9% per annum on the delayed payment of retiral benefits.
2. Brief facts of the case, as have been pleaded in the present
petition, are that the petitioner joined respondent No.4-Department on
contract basis on 21.01.1994. Thereafter, services of the petitioner was
regularized w.e.f. 23.01.2001. The petitioner got pre-mature retirement
on 30.06.2022 from the post of Junior Assistant. The petitioner has
completed all the formalities with regard to his pension papers,
however, his retiral benefits have not been released by respondent No.4-
Department. The petitioner also submitted a representation dated
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15.09.2022 to respondent No.4-Department for releasing his retiral
benefits i.e. gratuity and leave encashment along within 9% interest on
delayed payment of retiral benefits but to no avail. Hence, the present
petition.
3. Learned counsel for the petitioner submits that although all
the retiral benefits of the petitioner such as pension, provident fund
gratuity and leave encashment have been paid to the petitioner,
however, the gratuity and leave encashment have been paid after a
considerable delay. Therefore, the petitioner is entitled for grant of
interest on the delayed payment. The retiral benefits of the petitioner
have been released in the following manner :-
Sr. Particulars Cheque No. Date Amount
No.
1. Gratuity & Leave 828803 15.12.2022 50,000/-
encashment
2. 828806 23.12.2022 1,50,000/-
3. 828843 08.02.2023 1,50,000/-
4. 828855 14.03.2023 2,22,243/-
5. 828875 31.03.2023 1,50,000/-
6. 679521 16.05.2023 3,95,000/-
7. 16.05.2023 4,20,824/-
8. P.F. 825124 05.07.2022 4,50,000/-
9. 825147 29.08.2022 38,862/-
Total 20,26,929/-
4. Learned counsel for respondent No.4 submits that during
the pendency of the present petition, all the retiral benefits of the
petitioner have been released and nothing remained to be paid.
Therefore, the instant petition has been rendered infructuous.
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5. I have heard learned counsel for the parties and gone
through the relevant documents.
6. Since either before or after the retirement of the petitioner,
no departmental/criminal proceedings were pending against him,
therefore, the retiral benefits of the petitioner were required to be
released within a reasonable time after his retirement. Since there is a
considerable delay in releasing the payment of gratuity and leave
enacashment to the petitioner, therefore, the petitioner cannot be denied
the benefit of interest on the same.
7. A Full Bench of this Court in A.S. Randhawa Vs. State of
Punjab and others : 1997(3) S.C.T. 468 has held that where there is an
inordinate delay in releasing benefits 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 retiree 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 from 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. Apart from this, a Coordinate Bench of this Court in J.S.
Cheema Vs. State of Haryana : 2014(13) RCR (Civil) 355, had held
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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 the said judgment 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."
9. In view of the above factual position and settled principles
of law, the present petition is disposed of with a direction to respondent
No.4 to pay interest @ 6% per annum to the petitioner, on the delayed
payment of gratuity and leave encashment w.e.f. 01.10.2022 (i.e. after
three months of his retirement) till the actual date of payment, within a
period of 02 months from the date of receipt of certified copy of this
order.
04.07.2024 (NAMIT KUMAR)
kothiyal JUDGE
Whether speaking/reasoned: Yes/No
Whether Reportable: Yes/No
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