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SUPREME COURT OF INDIA
(From the High Court of Judicature at Madras)
M.R. SHAH, B.V. NAGARATHNA, JJ.
Dr. A. Selvaraj – Appellant
Versus
C.B.M. College and Others – Respondents
Civil Appeal No. 1698 of 2022
Decided On : 04-03-2022
Service Law – Retirement/Pensionary Benefits – As there was delay in making payment of retirement benefits and settling dues for which appellant employee is not at all responsible, he is entitled to interest on delayed payment – However, there is an inter se dispute between Secretary, Management and Government as to who is responsible for delay in making payment to appellant and he has been denied interest on delayed payment though entitled to – However, because of inter se dispute between Management, Secretary and Government on who is responsible for delay in making payment and/or settling dues, retired employee should not be made to suffer for no fault of his – Impugned judgment and order passed by Division Bench of High Court and that of Single Judge denying interest on delayed payment of retirement benefits to appellant quashed and set aside – Management /Trustees / College directed to pay interest on delayed payment of retirement benefits to Appellant, from date of retirement till actual payment was made, subject to final decision that may be taken by Government on objections to enquiry report that may be filed by former Secretary and/or College and it will be open for College / Management / Trustees to recover the same from person who ultimately is held to be responsible for delay. (Paras 4 and 5)
Facts of the case:
Appellant herein is a retired Associate Professor of Chemistry. He retired from the respondent No.1 – C.B.M. College, Coimbatore w.e.f. 30.06.2011. That the institution in which he was serving is an aided college. There was a delay in paying retirement/pensionary benefits, which was not paid despite various correspondences and the representations. Feeling aggrieved and dissatisfied with the impugned judgment and order dated 26.10.2021 passed by the High Court of Judicature at Madras in Writ Appeal No.704 of 2020 by which the High Court has disposed of the said appeal without granting any relief which was claimed, the original appellant has preferred the present appeal.
Findings of Court:
Payment of interest on delayed payment of retirement benefits to be paid strictly within a period of six weeks from today. In the meantime, the Government to pass a final order on the enquiry report after giving an opportunity to the College / Management / former Secretary. It goes without saying that it would be open to the aggrieved party to challenge the said decision before the appropriate forum.
Result : Appeal allowed.
JUDGMENT :
M.R. SHAH, J.
1. Feeling aggrieved and dissatisfied with the impugned judgment and order dated 26.10.2021 passed by the High Court of Judicature at Madras in Writ Appeal No. 704 of 2020 by which the High Court has disposed of the said appeal without granting any relief which was claimed, the original appellant has preferred the present appeal.
2. That the appellant herein is a retired Associate Professor of Chemistry. He retired from the respondent No. 1-C.B.M. College, Coimbatore w.e.f. 30.06.2011. That the institution in which he was serving is an aided college. There was a delay in paying the retirement/ pensionary benefits, which was not paid despite various correspondences and the representations. Ultimately, the appellant was constrained to file the writ petition before the High Court by way of Writ Petition No. 3224 of 2013. At the time of hearing of the aforesaid writ petition, it was submitted that during the pendency of the writ petition the entire terminal benefits have been settled. Therefore, the only issue remained was in respect of the interest on the delayed payment of pensionary benefits. Therefore, it was requested on behalf of the appellant before the learned Single Judge of the High Court that the action be taken against the erring officers for the delay caused in settling his dues and that he be paid interest on the delay in payment of retiral benefits. The learned Single Judge disposed of the writ petition by order dated 15.07.2020 relegating the petitioner – the appellant to make a representation to the Director of Collegiate Education to take appropriate action against the erring officers who had delayed in settlement of the payment in time. The Director of Collegiate Education was directed to consider the same and pass appropriate order in accordance with law after hearing the aggrieved persons as expeditiously as possible. However, as no order was passed in respect of the interest on the delayed payment of the retirement benefits, the original writ petitioner preferred the appeal before the Division Bench by way of Writ Appeal No. 704 of 2020. The Division Bench passed the following interim order on 09.08.2021:
2.1 That thereafter when the appeal was taken up for further hearing on 26.10.2021, it was reported that the Government has conducted an enquiry and fastened the liability on the College and observed that one Shri C.M. Ramaraj, the former Secretary of the College was responsible for the delay in disbursement of terminal benefits to the original writ petitioner. However, it was pointed out that the former Secretary, Shri C.M. Ramaraj was unwell and therefore he could not file objections to the enquiry report. Thereafter the Division Bench of the High Court has disposed of the said appeal by observing that it is ultimately for the Government to take an appropriate decision based on the enquiry report. However, the Division Bench of the High Court also observed that though the appellant – original writ petitioner shall be entitled to the interest on the delayed payment, however, the Government is yet to take a call on who was responsible for the delay and the Division Bench of the High Court has not passed any further order.
2.2 Feeling aggrieved and dissatisfied with the impugned judgment and order passed by the
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