ORDER

1. Leave granted.

2. The only controversy raised in this appeal is whether the respondent is entitled to payment of interest on retiral benefits at the rate of 12% per annum for the period beyond six months from the retirement or with effect from three months after the Fifth Pay Commission Report.

3. The Tribunals view, which was accepted by the High Court, was that payment of interest should be calculated with effect from three months after the Fifth Pay Commission Report. Our attention had been drawn to a circular dated 6 - 5 - 1991 which lays down that normally with regard to payment of retiral benefits, payment of interest is to be made in case there is delay of more than six months. In our opinion, the same principle should also be applied in case of payment of interest on retiral benefits by reason of voluntary retirement on the basis of the Fifth Pay Commission Report.

4. The appeal is allowed to that extent and the payment of interest shall be made for the period of delay after six months from the date of the Fifth Pay Commission Report. No order as to costs.