IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI
D.V.S.S.SOMAYAJULU, DUPPALA VENKATA RAMANA, JJ.
Narahari S/o Late I. Nageswara Rau – Appellant
Versus
The State of Andhra Pradesh – Respondent
W.A.Nos.952 & 1000 of 2022 and 26 of 2023
Decided on : 11-08-2023
Interest - Retirement Benefits - A.P. Pension Rules, Payment of Gratuity Act - 1. Deokindandan Prasad v. State of Bihar, AIR 1971 SC 1409 2. State of Kerala v. Padmanabhan, AIR 1985 SC 356 3. Sk.Dua v. State of Haryana, 2008 (3) SCC 44 4. Bal Kishore Mody v. Arun Kumar Singh, 2001 (10) SCC 174 5. D.D.Tewari v. Uttar Haryana Bijli Vitran Nigam Ltd., and others, 2014 (8) SCC 894 6. Union of India v. M.S.Abdulla, 2006 (6) SCC 455 7. Ex.Capt. R.S.Dhull v. State of Haryana and others, 1998 (4) SCC 379
Fact of the Case:
The writ petitioner claimed interest on delayed payment of retirement benefits. The charges issued on the verge of retirement were dropped, and the petitioner filed a writ petition for interest on the delayed payment. The writ petition was allowed with interest at 9% per annum on all amounts due. The Agricultural Market Committee and the State of Andhra Pradesh filed appeals questioning the reduced interest awarded.
Finding of the Court:
The court found that the petitioner was entitled to interest on the delayed payments, considering the legal position and the facts of the case. The court allowed the writ petitioner's appeal in part, modifying the interest rate from 9% to 12% per annum.
Issues: The issues revolved around the entitlement of the writ petitioner to interest on delayed retirement benefits, the interpretation of A.P. Pension Rules, and the application of legal principles from relevant case law.
Ratio Decidendi: The court held that the writ petitioner was entitled to interest on the delayed payments based on the legal position established by relevant case law and the Payment of Gratuity Act. The court modified the interest rate from 9% to 12% per annum, considering the peculiar circumstances of the case and the protracted legal battle fought by the petitioner.
Final Decision: Writ appeal Nos.26 of 2023 and 1000 of 2022 were dismissed, and W.A.No.952 of 2022 was allowed in part, awarding interest at 12% per annum on all claimed amounts from 30.01.2017 till the date of actual payment. No order as to costs. The miscellaneous petitions, if any, shall stand dismissed.
JUDGMENT :
D.V.S.S.SOMAYAJULU, J.
Common arguments were advanced in these three matters. All these three writ appeal arise out of an order passed in W.P.No.13584 of 2021 dated 20.09.2022.
2. W.A.No.26 of 2023 is filed by the Agricultural Market Committee which is respondent No.3 in the writ petition against the above order.
3. W.A.No.1000 of 2022 is filed by the State of Andhra Pradesh, who is the respondent No.1 in the said order.
4. W.A.No.952 of 2022 is filed by the writ petitioner questioning the award of interest by the learned single Judge at 9% instead of 14% in the said order.
5. This Court has heard Sri P.V.Ramana, learned counsel for the writ petitioner, Sri C.Sumon for the State of Andhra Pradesh and Sri B.Prakasam, learned standing counsel for the Agricultural Market Committee.
6. The facts in this case are not strictly in dispute. The writ petition has been filed by the petitioner claiming interest on the delayed payment of his retirement benefits.
7. Sri P.V.Ramana, learned counsel pointed out that just on the verge of writ petitioner’s retirement, two charge memos were issued to him on 22.11.2016 and 29.11.2016. His date of superannuation was 31.12.2016. After the matters were examined, both the charge memos were ultimately dropped. One charge memo was dropped on 12.05.2019 by issuing a memo and the 2nd charge was dropped on 28.01.2021. Thereafter, a total sum of Rs.42,45,909/- was paid to the writ petitioner on 23.02.2021. Claiming interest for the delayed payment, the writ petition was filed. The matter was heard and the writ petition was allowed with interest at 9% per annum on all the amounts due. Questioning the said judgment, W.A.No.26 of 2023 and W.A.No.1000 of 2022 are filed by the Agricultural Market Committee and the State of Andhra Pradesh respectively. Questioning the reduced interest awarded, the writ petitioner has filed W.A.No.952 of 2022.
8. Sri P.V.Ramana, learned counsel for the writ petitioner argued the matter at length and set out all the facts pointing out that the writ petitioner was victimized at every stage and that he had to fight a long legal battle to get his legitimate dues. In the present case, he points out that both the charges which were given on the verge of his retirement were finally dropped by the Government itself. Therefore, he contends that the petitioner is entitled to interest. A small booklet is filed with case law, which are as follows:
2. State of Kerala v. Padmanabhan, AIR 1985 SC 356
3. Sk.Dua v. State of Haryana, 2008 (3) SCC 44
4. Bal Kishore Mody v. Arun Kumar Singh, 2001 (10) SCC 174
5. D.D.Tewari v. Uttar Haryana Bijli Vitran Nigam Ltd., and others, 2014 (8) SCC 894
6. Union of India v. M.S.Abdulla, 2006 (6) SCC 455
7. Ex.Capt. R.S.Dhull v. State of Haryana and others, 1998 (4) SCC 379
9. Learned counsel submits that the learned single Judge was right in allowing the writ petition, but he submits that he should have ordered interest at 14% and therefore he prays that his appeal should be allowed while dismissing the writ appeals filed by the State and the Agricultural Market Committee.
10. Sri C.Sumon, learned counsel, argues in line with what is stated in the counter. He points out that the mere fact that the charges were dropped would not entitled the writ petitioner to claim interest from the date of his retirement. It is his contention that when allegations are made, the same have to be investigated and thereafter final decisions have to be taken. Since it is the Government and the machinery works in its own pace, after considering all the aspects final decisions were taken and the petitioner was exonerated. He also points out that pendency of various charges before the Commissioner of enquiries etc., is not denied and therefore it is clear that after examination only, the final conclusions were reached. He also points out that the amounts were paid immediately after decision was taken to drop the proceeding. He als
Bal Kishore Mody v. Arun Kumar Singh
D.D.Tewari v. Uttar Haryana Bijli Vitran Nigam Ltd. and others
Deokindandan Prasad v. State of Bihar
Ex.Capt. R.S.Dhull v. State of Haryana and others
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