SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img



IN THE HIGH COURT OF DELHI
Rajiv Shakdher, Talwant Singh, JJ.
North Delhi Municipal Corporation - Appellant
Versus
Santosh Devi - Respondent
W.P.(C) 3299 of 2022
Decided On : 23-02-2022




Negligence in timely payment of retiral benefits constitutes a financial burden on dependents, necessitating interest payments for delays.

Headnote:(A) Central Administrative Tribunal Act, 1985 - Delay in payment of retiral benefits - Respondent’s husband retired in 1998 but benefits were not paid post-retirement till 2017 due to petitioner's negligence. Ordered to pay interest on delayed payments. (Paras 4.1, 4.2, 4.3)

(B) Interest on retiral benefits - The court affirmed that failure to pay retiral dues and interest places an undue financial burden on the respondent. (Paras 5.1, 6.1)

Facts of the case:
The petitioner failed to pay retiral benefits of an employee for nearly 19 years, which ultimately required the widow to seek information through RTI.

Findings of Court:
The Tribunal ordered the petitioner to pay interest for delays and mandated the recreation of service records to finalize dues.

Issues: The main issues included the petitioner’s obligation to pay interest on delayed retiral benefits and the appropriateness of their appeal regarding those payments.

Ratio Decidendi: The court emphasized that the petitioner must not neglect their duty to timely provide benefits to employees, leading to an unjust burden on dependents.

Result: Writ petition dismissed with costs of Rs.20,000/- to be paid to the respondent.

Table of Content
1. challenge to payment of interest due to delay (Para 2 , 3)
2. tribunal's directions on payment of retirement benefits (Para 4)
3. petitioner's arguments on interest payments (Para 5)
4. court's decision to dismiss the writ (Para 6)
5. final orders on costs and closure of applications (Para 7)

JUDGMENT

[Court hearing convened via video-conferencing on account of COVID-19]

Rajiv Shakdher, J. (Oral):

CM APPL.9578/2022

1. Allowed, subject to just exceptions.

W.P.(C) 3299/2022

CM APPL. No.9577/2022[Application filed on behalf of the petitioner for interim relief]

CM APPL. No.9579/2022[Application filed on behalf of the petitioner for taking on record additional documents]

2. This writ petition is directed against the order dated 20.08.2018, passed by the Central Administrative Tribunal [in short, the "Tribunal"] in O.A. No.1479/2017.

2.1. As per the prayer made in the writ petition, the challenge laid to the order dated 20.08.2018 is confined to payment of interest for the delay that occurred in making requisite payments to the respondent.

3. According to us, this is one of those gross cases where the petitioner's/NDMC's apathy towards its employee, one, Mr Brij Lal Premi led to a situation where his retiral benefits were not paid upon his retirement. This state continued to obtain even after Mr Premi's death.

3.1. Concededly, the petitioner/NDMC misplaced the service book of the deceased employee i.e., Mr Premi.

3.2. To begin with, Mr Premi was employed as a Head Clerk with the erstwhile avatar of the petitioner/NDMC.

3.3 Mr Premi retired from service on 31.01.1998. As noticed above, Mr Premi's retiral dues were not paid.

3.4. Mr Premi expired in 2015. The respondent i.e., the widow of Mr Premi was, thereafter, made to run from pillar to post to claim the retiral benefits.

3.5. As a matter of fact, the respondent had to employ the Right to Information (RTI) route to ferret out relevant information from her deceased husband's employer i.e., the petitioner/NDMC.

4. It is in this context that the Tribunal, via the impugned order, passed the following operative directions:

    "8. In the event, respondents are direction as under:-

    i) The GPF amount having been paid on 18.12.2017 after delay of about 19 years, the respondents shall now pay interest on this amount, at GPF rate for this entire period with effect from Date of Retirement in 1998 till 18.12.2017, within eight weeks from the date of receipt of a copy of this order.

    ii) The GIS payment has also been paid on 19.04.2018 after delay of almost 19 years. The amount paid is Rs.3141/-. The interest on this amount of Rs.3141/- at GPF rate shall also be paid for this entire period with effect from Date of Retirement in 1998 till 19.4.2018, within a period of eight weeks from the date of a copy of this order.

    iii) Respondents are further directed to recreate the service book from whatever is available with them and work out all retiral dues e.g. leave encashment, pension, family pension etc. and pay the same along with interest at GPF rate for the entire period with effect from Date of Retirement till the time of payment, within a period of eight weeks of receipt of a copy of this order. The due date of payment, for the purpose of interest in respect of monthly pension, shall be reckoned as the month when it actually became due.

    9. The OA is disposed of accordingly. In case, the benefits are not released within this period of eight weeks, the applicant shall be at liberty to approach the Tribunal again through a contempt petition. In such an eventuality, which Tribunal hope will not arise, it is also directed that respondent will be personally present during hearing..."

5. Ms Namrata Mukim, who appears on behalf of the petitioner/NDMC, says that, as indicated in the prayer made in the writ petition, the only aspect which the petitioner seeks to agitate before the Court concerns the direction for payment of interest.

5.1. Ms Mukim has drawn our attention to An

Click Here to Read the rest of this document
1
2
3
4
5
6
7
8
9
10
11
SupremeToday Portrait Ad
supreme today icon
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon Back to top