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IN THE HIGH COURT OF DELHI
Jyoti Singh, J.
Jai Shree - Appellant
Versus
Director of Education Government of NCT of Delhi - Respondent
W.P.(C) 9968 of 2018
Decided On : 14-12-2022
Important Points
Subject
Administrative Law - Pension and Gratuity
Headnote
(B) Interest on delayed payment - It is settled law that interest is due on belated payment of retirement dues. The court determined the interest rate as 6% per annum for delays from the date of superannuation until actual payment. (Para 3)
Facts of the case:
The writ petition was filed for the payment of retirement gratuity and NPS contributions, with the Petitioner having retired on 28.02.2015 after 4 years and 11 months of service. Respondents accepted the assurance to release dues.
Findings of Court:
All terminal dues of the Petitioner must be released within five weeks. Interest on delayed payment was to be granted at 6%.
Issues: The case addressed entitlement to gratuity for partial service duration and the applicable interest rate for delayed payment.
Ratio Decidendi: The court reinforced the entitlement to interest on delayed retrial dues, affirming that the settled law dictates such payments must include interest from the date due.
Result: Petition disposed of.
| Table of Content |
|---|
| 1. entitlement for retirement gratuity and service benefits based on service duration. (Para 1) |
| 2. respondents assure timely release of terminal dues. (Para 2) |
| 3. entitlement to interest on delayed payment of retirement dues. (Para 3) |
| 4. petition disposed and relief ordered. (Para 4) |
JUDGMENT
Jyoti Singh, J. (Oral)--Present writ petition has been filed by the Petitioner seeking retirement gratuity and service gratuity for continuous service of 4 years and 11 months as well as NPS contribution of the employer by reckoning the service as 5 years under Rules 49 and 50(1)(a) of CCS (Pension) Rules, 1972 along with interest @ 18% per annum on delayed payment from the date of superannuation till actual realization of the amounts.
2. Learned Standing Counsel appearing on behalf of Respondents No. 1 and 2, on instructions from Mr. Lalit Kumar, Assistant to Pairvi Officer Zone 01, Directorate of Education, submits that terminal/retiral dues of the Petitioner shall be released to the Petitioner within a period of five weeks from today. It is also submitted that since the provident fund contribution could not be released on account of non-contribution by the concerned Department, Respondent No. 1 shall ensure that the requisite deposits are made and PF contributions are also released to the Petitioner.
3. The assurance given by the Respondents is taken on record and it is directed that all retirement/terminal dues of the Petitioner be released within a period of five weeks from today. It is undisputed that Petitioner retired on superannuation on 28.02.2015 and was re-employed thereafter for two years. A period of over 7 years has elapsed from the date of superannuation and 5 years from the end of re-employment. In view of the settled law, Petitioner is entitled to interest on belated payment of the retiral/terminal dues. [Ref.: Dr. A. Selvaraj v. C.B.M. College and Others, (2022) 4 SCC 627]. Petitioner is, therefore, held entitled to interest @ 6% per annum on the retiral dues from the date of superannuation till actual payments.
4. Petition is accordingly disposed of.
