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IN THE HIGH COURT OF JUDICATURE AT BOMBAY BENCH AT AURANGABAD
S.V. Gangapurwala, S.G. Dige, JJ.
Satish – Appellant
Versus
Union of India & Ors. – Respondents
Writ Petition No. 5166 of 2018
Decided On : 03-01-2022

Advocates Appeared:
L.V. Sangeet, Advocate, for the Appellant; B.B. Kulkarni, Standing Counsel, for the Respondent

Entitlement to interest on delayed payment of disability pension based on lack of plausible explanation for the delay and rules requiring payment within a reasonable time.

Headnote:

Interest - Disability Pension - K.J.S. Buttar Versus Union of India - (2011) 11 SCC 429, Union of India and others Versus Subhash Chander Soni - Civil Appeal 4677 of 2014

Fact of the Case:

The petitioner sought interest on delayed payment of disability pension, which was granted by the Division Bench of the Court in 2014. The pension amount was deposited in the petitioner's account in 2017, causing a delay of almost three years. The petitioner claimed entitlement to interest on the delayed payment from 1990.

Finding of the Court:

The Court found that the petitioner was entitled to disability pension and other consequential benefits, as directed by the Division Bench in 2014. However, the Court also noted the delay in payment of the pension amount and the lack of rational explanation for the delay. The Court referred to the judgments in K.J.S. Buttar Versus Union of India and Union of India and others Versus Subhash Chander Soni to support its decision.

Issues: The issues involved the entitlement to interest on delayed payment of disability pension, the delay in payment of the pension amount, and the applicability of relevant legal provisions.

Ratio Decidendi: The Court held that the petitioner was entitled to interest on the delayed payment of disability pension at a rate of 8% p.a. for a period of three years, based on the lack of plausible explanation for the delay in payment and the rules requiring payment within a reasonable time.

Final Decision: The Writ Petition was partly allowed, and the respondents were directed to pay interest at a rate of 8% p.a. for a period of three years on the amount of disability pension paid to the petitioner within four months from the date of the order.

JUDGMENT

S.V. Gangapurwala, J. - Rule. Rule made returnable forthwith. With consent of parties the matter is taken up for final hearing at the admission stage.

2. The petitioner seeks interest @ 12% p.a. on the delayed payment of disability pension.

3. Mr. Sangeet, learned counsel for the petitioner strenuously contends that the petitioner joined the services with respondents in the year 1985. The petitioner was discharged from the duty on 23-01-1990 on medical ground. The petitioner was not paid disability pension. The claim of the petitioner for disability pension was rejected. The petitioner filed Writ Petition No. 2425 of 2000. The said Writ Petition was allowed by the Division Bench of this Court under Judgment and order dated 08-10-2014, thereby the order of rejecting the claim of the petitioner for disability pension was set aside. It was held that petitioner was entitled for the benefit of disability pension and other consequential benefits. The respondents were directed to pay the same. According to the learned Advocate, though the said order was passed in October 2014, the amount of pension was deposited in the account of the petitioner only in the month of December, 2017. The learned Advocate for the petitioner submits that petitioner was entitled to disability pension at least from the month of April 1990. The Rules applicable mandate that the respondents shall make payment of pension within three months. The petitioner was discharged from the duties on 23-01-1990. It means the amount at least ought to have been paid by the Department in April, 1990. The respondent did not pay the said amount, eventually, petitioner had approached this Court. The petitioner is entitled for interest on delayed payment of pension from May, 1990 till the month of December, 2017. Mr. Sangeet, learned counsel for petitioner relies on the Judgment of the Apex Court in the case of K.J.S. Buttar Versus Union of India and another reported in (2011) 11 SCC 429.

4. Mr. Kulkarni, learned counsel for the respondents submits that the petitioner is not entitled for interest on delayed payment of pension. It is bonafide belief of the respondents that the petitioner is not entitled for disability pension. The petitioner after lapse of ten years approached this Court by filing the Writ Petition. According to learned counsel, this Court had directed the payment of pension on the ground that the Medical Board had arrived at un-reasoned conclusion and the Court by taking liberal approach allowed the petition and directed the respondents to make the payment of disability pension. After the order was passed by this Court, some delay was caused because of administrative reasons. The learned counsel submits that in similar matters, the Apex Court has denied to grant interest on the delayed payment, he relies on the order dated May, 20, 2015 in the case of Union of India and others Versus Subhash Chander Soni in Civil Appeal 4677 of 2014.

5. We have considered the submissions canvassed by the learned Advocate for the parties. The factual matrix as narrated above that the petitioner was in employment of respondents from 1985 and discharged from the duty w.e.f. 23-01-1990, is not disputed. The petitioner was not paid disability pension. The petitioner filed Writ Petition No. 2425 of 2000 after slumber of ten years. The delay in filing the Writ Petition was because of departmental appeal filed by the petitioner. The appeal was dismissed. This Court under Judgment and order dated 08-10-2014 partly allowed the Writ Petition directing the respondents therein to make payment of disability pension to the petitioner. Though the order was passed by this Court in the month of October, 2014, the amount of pension was deposited in the account of the petitioner in December, 2017.

6. The petitioner was denied disability pension. The petitioner suffered head as well as chest pain at Jalandhar and he was admitted in the Hospital for about 5 to 6 months. On 23-01-1990 the petition

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