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1998 Supreme(SC) 118

SUPREME COURT OF INDIA
S.C. AGRAWAL, S. SAGHIR AHMAD AND A.P. MISRA, JJ.
Union of India and another, Appellants
Versus
K. Balakrishna Nambiar, Respondent.
Civil Appeal No. 476 of 1998 (arising out of SLP (Civil) No. 19553 of 1995),
D/- 27-1-1998.

Interest not payable on the amount for the period of unauthorised occupation of Government accommodation and one month after vacating the same.

Headnote:

Interest - Government Accommodation - Payment of Death-cum-Retirement Gratuity

Fact of the Case:

The case involved the payment of Death-cum-Retirement Gratuity to the respondent who unauthorisedly retained the Government accommodation after his retirement.

Finding of the Court:

The court modified the impugned order passed by the Tribunal, directing that interest would not be payable by the appellants to the respondent on the amount for the period the respondent was in unauthorised occupation of the Government accommodation and the period of one month after his vacating the same.

Issues: Payment of Death-cum-Retirement Gratuity, Unauthorised occupation of Government accommodation, Payment of interest

Ratio Decidendi: Interest would not be payable by the appellants to the respondent on the amount for the period the respondent was in unauthorised occupation of the Government accommodation and the period of one month after his vacating the same.

Final Decision: The appeal is disposed of accordingly. No costs.

JUDGMENT :- Delay condoned.

2. Special leave granted.

3. The respondent has not appeared even though served.

4. We have heard Shri N.N. Goswami, the learned senior counsel appearing for the appellants. The matter relates to payment of Death-cum-Retirement Gratuity to the respondent who unauthorisedly retained the Government accommodation after his retirement. By the impugned judgment the Central Administrative Tribunal [hereinafter referred to as the Tribunal] has directed the appellants to pay the amount of gratuity with interest from December 30, 1989 for a period of 9 months and thereafter, until realisation within three months from the date of communication of the order. Shri Goswami as submitted that interest was not payable to the respondent in respect of the period he was in unauthorised occupation of the Government accommodation and for a period of one month after the vacation of the accommodation and has placed reliance on the order dated December 4, 1995 passed by this Court in Civil Appeal arising out of SLP(C) No. 14609/95, Union of India v. S. V. Ramtoke. In view of the said decision of this Court, the impugned order passed by the Tribunal is modified and it is directed that interest would not be payable by the appellants to the respondent on the amount of Rs. 23,888.00 for the period the respondent was in unauthorised occupation of the Government accommodation and the period of one month after his vacating the same. The appeal is disposed of accordingly. No costs.

Order accordingly.

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