IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
Vaibhavi D. Nanavati, J.
Dr. Jagdishchandra Amratlal Andhariya, Residing At - Appellant
Versus
Registrar, Maharaja Krishnakumarsinhji Bhavnagar & Ors. - Respondent
Special Civil Application No. 8325 of 2017
Decided On : 26-11-2024
(A) Government Resolution dated 20.12.2002 - Delay in payment of retiral benefits - The Tribunal rejected the application for interest on delayed payment, attributing delay to the petitioner, which was erroneous. The petitioner is entitled to interest at 6% as per Clause-5 of the resolution. (Paras 9.3, 10)
(B) Application for voluntary retirement - The petitioner applied for voluntary retirement on 14.12.2010 and was allowed to retire on 30.04.2011, but faced a delay of 22 months in receiving pension benefits due to procedural lapses by the respondents. (Paras 5.1, 6.2)
Facts of the case:
The petitioner, a lecturer, applied for voluntary retirement, but the approval and subsequent pension processing led to a significant delay, prompting a claim for interest on the delayed amount of Rs.6,22,914/-. (Paras 5.1, 5.3)
Findings of Court:
The Tribunal erred in attributing the delay to the petitioner and not considering the government resolution stipulating interest on delayed payments. The court granted interest at 6% on the gratuity amount. (Paras 10, 11)
Issues: The main issues included whether the delay in payment was attributable to the petitioner and the applicability of the government resolution regarding interest on delayed payments. (Paras 9.2, 9.4)
Ratio Decidendi: The court found that the Tribunal wrongly attributed the delay to the petitioner without acknowledging the procedural lapses by the authorities and ruled that the petitioner is entitled to interest as per the government resolution. (Paras 10, 11)
Result: The petition is allowed in part, granting interest at 6% on the gratuity amount.
JUDGMENT :
Vaibhavi D. Nanavati, J.
1. Heard Mr. Kashyap R. Joshi, learned advocate appearing for the petitioner, Mr. Denish Morakhia, learned advocate for Mr. Hriday Buch, learned advocate appearing for the respondent no.1- University and Ms. Pooja Ashar, learned Assistant Government Pleader appearing for the respondent nos. 2 to 4.
2. By way of the present petition, petitioner herein has challenged the order dated 08.12.2016 passed by the Gujarat Educational Institutions Service Tribunal in Application No. 1 of 2014 (new Application No. 1944 of 2014), whereby, petitioner’s application before the Tribunal, which is duly produced at Annexure-A, Pg. 19 seeking the prayers as prayed for the interest accrued on the delayed payment of the retiral dues to the tune of Rs.6,22,914/- alongwith Rs.10,000/- as costs. On 24.01.2014, by filing the said application, the petitioner in para-4 to 6 stated the following, which read thus:
After the objection was raised by the Respondent No.2 with respect to the pension case of the applicant, the University took the time of one year, ten months and five days to remove the said objection, which is too long. The applicant received the selection grade of Rs.14,940/- on 04/07/99. Therefore, it was the responsibility of the Respondent No.1, the Bhavnagar University, to get it verified by the competent authority at the respective time. The said verification was not done by the University at the respective time and therefore, the objection was raised in the pension case of the applicant.
(5) The applicant had done the Ph.D in the year 1999. Therefore, two increments were given to him as per the rules prevalent at that time. An entry in this regard was made in the applicant’s service book by the Registrar of the University. The Respondent No.2 had also made an entry in this regard in the applicant’s service book. The applicant was given the benefit of the Sixth Pay Commission by the University. The applicant states that, after the fixation of pay as per the Sixth Pay Commission, it was necessary for the Respondent No.1 University to affix a sticker in the service book after getting the said new pay scale verified. In this regard, a circular dated 27/07/2010 was issued by the Finance Department. In connection with the same, though it was necessary for the University to get the pay fixation verified online or by the Local Fund Accounts, the Respondent No.1, University did not carry out the said procedure. And in the case of the applicant, no such procedure was carried out till the applicant voluntarily retired on 30/04/11. Due to this fact, the objection was raised in the pension case of the applicant, which caused a delay in the payment of retirement benefits and regular pension benefits to the applicant. The applicant states that the said delay has been caused only because of the Respondent No.1, University and Respondent No.2, the Commissioner of High Education. The orders regarding the fixation of pay were made by the Accounts Officer, Pay Verification Unit, Local Fund on 28/12/2012 after the correspondence by the applicant. The copy of the said order dat
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.
Retirees entitled to 8% interest on delayed pensionary benefits due to administrative lapses in processing.
The main legal point established in the judgment is that a former employee is entitled to interest on delayed retirement benefits if the delay is attributable to the employer, as per the Railway Serv....
Public servants are entitled to interest on delayed payment of retiral benefits if the delay is attributable to the State.
Government employees are entitled to interest on delayed payment of pension and gratuity, and the rate of interest is determined based on the date the amount has fallen due, as per relevant legal pro....
Retiral dues must be paid promptly; interest on delays conditional on financial crises, escalating from 7.5% to 12%.
The court ruled that the Secretary must properly examine administrative lapses in delayed pension payments, as mandated by Section 197-A of the Assam Service (Pension) Rules, 1969.
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