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2018 Supreme(Cal) 239

IN THE HIGH COURT OF JUDICATURE AT CALCUTTA
SAMAPTI CHATTERJEE, J.
Annapurna Maiti - Appellant
Versus
The State of West Bengal & Others - Respondent
W.P. No. 29432(W) of 2017
Decided On : 08-01-2018

Advocates Appeared:
For the Petitioner:Sreyasree Choudhury, Advocate.
For the Respondents:Bineeta Bhattacharya, Advocate.

Delay in releasing pensionary benefits entitles the retired employee to receive interest as compensation, and relief may be granted despite delay in payment or refixation of pay or pension.

Headnote:

Pensionary Benefits - Delayed Payment - Legal Provision

Fact of the Case:

The petitioner's husband, a retired Assistant Teacher, passed away and the pension payment order was issued with a significant delay. The petitioner sought interest on the delayed payment of pensionary benefit.

Finding of the Court:

The court emphasized the importance of timely release of pensionary benefits and the compensatory nature of interest for delayed payment. It also addressed the issue of limitation, stating that relief may be granted despite delay in payment or refixation of pay or pension.

Issues: Delay in pension payment, entitlement to interest on delayed pensionary benefits, and application of the Limitation Act to writ petitions.

Ratio Decidendi: The right to receive pensionary benefits upon retirement is a valuable right, and delay in payment entitles the retired employee to receive interest as compensation. The court also clarified that the Limitation Act does not apply to writ petitions and relief may be granted despite delay.

Final Decision: The court directed the Treasury Officer to pay the petitioner interest at the rate of 9% per annum on the amount released in favor of the petitioner by way of pensionary benefit from June 15, 1990 till the date of issuance of Pension Payment Order. The writ petition was disposed of with no order as to costs.

JUDGMENT :

1. Affidavit-of-service filed in Court today be kept with the record.

2. Despite service of notice, none appears on behalf of the respondents.

3. Ms. Bineeta Bhattacharya, learned advocate, who usually appears on behalf of the State, is present in Court today. She is directed to appear in this matter. Her appointment be regularised by the office of the Legal Remembrance.

4. The material facts of the case are admitted and hence I have not called for affidavits.

5. The husband of the petitioner retired on 31.5.1969 as an Assistant Teacher of a Primary School and he died on 24.5.1979. The pension payment order was issued on 14.12.2012. The petitioner approached the concerned authority for payment of interest on the delayed payment of pension. Being unsuccessful, the petitioner has approached this Court. In this writ petition she prays for interest on the delayed payment of pensionary benefit.

6. It is now well settled that if there is a delay in releasing the pensionary benefits to a retired employee or to the legal heir of a deceased employee, some amount of interest should be paid to compensate for the delay in releasing the benefits. The pensionary benefits are welfare measures meant to enable a retired employee or the dependants of a deceased employee to live a life of dignity. Hence, it is imperative and of utmost importance that such benefits are released to a retired employee or the legal heir of a deceased employee without any delay. If there is delay, interest at a reasonable rate is payable by way of compensation. This is not punitive but purely compensatory.

7. Although the point of delay or limitation has not been urged on behalf of the State, I deem it appropriate to address that issue briefly. The Limitation Act in terms does not apply to writ petitions. The Hon'ble Supreme Court in the case of Union of India v. Tarmen Singh reported in (2008) 8 SCC 648 has observed that if the issue relates to payment or refixation of pay or pension, relief may be granted in spite of delay as it does not affect the rights of third parties. It is settled law that the right of a retired employee to get his retiral dues on the date of attaining superannuation is a valuable right which accrues in his favour on the date of his attaining superannuation. Further, pensionary benefits are no more considered to be a bounty to be handed out by the State at its whim. An employee has a right to receive such benefits upon retirement. If payment of such benefits is delayed, the retired employee is surely entitled to get some interest for such delayed payment.

8. The Rule that the High Court may not enquire into belated and stale claim is not a Rule of Law, but one of practice based on sound and proper exercise of discretion. The principle on which the relief to a party is denied on the ground of laches or delay is that the right which have accrued to others by reason of delay in approaching the Court should not be allowed to be disturbed. In the present case, it was the bounden duty of the State to disburse the pensionary benefits on the due date. If it has failed to do so and has released such amount after unexplained delay, it is obliged to pay interest to the retired employee. This is compensatory in nature. Pension and gratuity are aimed at maintaining the life of a retired employee and his/her dependents, these are welfare provisions and even if there is delay on the part of a retired employee to approach the Court claiming interest on delayed payment of pensionary benefits, the delay per se should not be the ground for rejection of the writ petition. No third party interest will be affected by a direction on the State to compensate the retired employee for delayed payment of pensionary benefits by paying interest at a reasonable rate.

9. Learned counsel for the petitioner drew my attention to a Memorandum dated November 1, 2010 issued by the School Education Department, Budget Branch, Government of West Bengal. The said Memorandum pertain







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