IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
A.S. SUPEHIA, MAUNA M. BHATT, JJ.
KANTILAL CHHAGANDAS PATEL – Appellant
Versus
COMMISSIONER OF HIGHER EDUCATION (SECONDARY SECTION) – Respondent
Letters Patent Appeal No. 1065 of 2022, Special Civil Application No. 14110 of 2017
Decided On : 24-07-2024
Interest - Retirement Benefits - Letters Patent Act, 1865 - The court interpreted the provisions of the Letters Patent Act, emphasizing the right to interest on delayed retirement benefits due to administrative inaction, leading to a decision to award interest from a specified date.
Fact of the Case:
The appellant was dismissed from service in 1995, but the dismissal was not approved by the District Education Officer. After a series of legal proceedings, the appellant sought retirement benefits, which were delayed until 2018 due to management inaction.
Finding of the Court:
The court found that the management and state authorities failed to process the pension papers promptly, leading to undue delay in the payment of retirement benefits, which warranted the awarding of interest.
Issues: Whether the appellant is entitled to interest on retirement benefits due to the delay caused by the management and state authorities.
Ratio Decidendi: The court held that the appellant is entitled to interest on retirement benefits from the date of dismissal of the management's appeal, as the delay was unjustified and resulted from administrative inaction.
Result: The appeal is partly allowed, and the appellant is entitled to 9% interest on retirement benefits from 01.05.2003.
JUDGMENT :
A.S. SUPEHIA, J.
1. ADMIT. Learned advocates appear and waive service of notice of admission on behalf of the respective respondents.
2. The present Letters Patent Appeal filed under Clause 15 of the Letters Patent, 1865, is directed against the order dated 20.07.2021 passed by the learned Single Judge in the captioned writ petition to the extent of denying the interest on the retirement benefits.
3. Learned advocate Mr.Vaibhav Vyas, appearing for the appellant has submitted that in fact, the appellant would be entitled to interest since he was illegally dismissed from the services on 10.10.1995. It is submitted that the District Education Officer has refused to grant the approval to the dismissal order and hence, the appellant filed an Application No. 119 of 2001 claiming the retirement benefits fixing his pension as well as revision of pay as per 5th Pay Commission. By the judgment dated 17.06.2004, the Gujarat Educational Institutions Services Tribunal, Ahmedabad (hereinafter referred as “the Tribunal”) allowed the application and directed the management to revise the salary and pay the arrears of salary from 01.01.1996 till 31.10.2000 and also to pay the provisional pension to the appellant along with all consequential benefits.
4. It is submitted by the learned advocate Mr.Vyas, that the aforesaid order passed by the Tribunal was assailed by the Management by filing writ petition being Special Civil Application No. 13036 of 2004 and by the interim order dated 25.04.2005, this Court had directed the Management to take all necessary steps in furtherance of finalization of the pension. Further, it is submitted that vide order dated 21.04.2014, this Court called for the Managing Trustee to remain present and it was observed that the pension case with service book was not yet prepared by the Principal and finally in the said order, the learned AGP appearing for the District Education Officer has made a statement, which is recorded by the learned Single Judge that the concerned office shall take necessary steps for the purpose of finalization of pension case on the basis of available records and ultimately, the said writ petition was rejected by the judgment and order dated 15.09.2014/16.09.2014. He has submitted that meanwhile, it is recorded in the said order that provisional pension of the appellant was fixed at Rs.1891/- per month by the order dated 21.05.2003 but without giving any benefits of 5th Pay Commission. It is submitted that finally, the learned Single Judge, while disposing of the writ petition, has recorded that it will be open for the appellant (first respondent) to seek the remedy as may be advised to him for redressal of the subsisting grievance, if any.
5. Learned advocate Mr.Vyas, has further submitted that the appellant had filed an Execution Application No. 4 of 2015 in Application No. 119 of 2001 for implementation and execution of the judgment and order dated 17.06.2004 passed by the Tribunal. He has submitted that it appears that by the order dated 17.02.2016, the Tribunal directed the Management to do the needful with regard to the higher pay-scale and necessary proposal should be sent to the District Education Officer.
6. Learned advocate Mr.Vyas has further submitted that since nothing was done with regard to the compliance of the order dated 17.06.2004 passed by the Tribunal, he filed captioned writ petition before this Court claiming retirement benefits and the implementation of the order dated 17.06.2004 passed by the Tribunal. It is submitted that the Management has also instituted a criminal proceeding against the appellant by filing a complaint with Vejalpur Police Station for commission of the alleged offences punishable under Sections 408, 506(1) and 501 of the Indian Penal Code, 1860 (the IPC), on 18.10.1995 however, he has been subsequently acquitted by the judgment and order dated 13.12.2012. Thus, it is submitted that despite the orders passed by this Court, the Management and the St
The court established that employees are entitled to interest on delayed retirement benefits when the delay is due to administrative inaction.
The Tribunal erred in attributing delay in pension payment to the petitioner; interest at 6% is due under Clause-5 of the government resolution for delayed retiral benefits.
The court established that failure to complete a departmental inquiry within the prescribed period invalidates the dismissal, entitling the employee to retirement benefits.
Pension is a constitutional right and must be disbursed timely; claims for compensation due to delays require evidence and cannot be resolved in writ proceedings.
Retiral benefits are a right of the employee, and undue delay in their disbursement by the State can lead to the imposition of interest and costs, reflecting the accountability of public authorities ....
Public servants are entitled to interest on delayed payment of retiral benefits if the delay is attributable to the State.
Point of Law - Service Matter – Benefits of Pension Right of the petitioner to claim the pensionary benefits alive in any other proceedings which may be initiated by the petitioner at the appropriate....
Disciplinary proceedings must be initiated before retirement to continue post-retirement; unilateral alteration of service records without notice violates natural justice.
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