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2020 Supreme(Gau) 391

GAUHATI HIGH COURT
N. Kotiswar Singh, J.
Dulal Krishna Bhatta - Appellant
Versus
State Of Assam, - Respondent
Writ Petition (Civil) No. 3450 of 2018
Decided On : 05-03-2020

Advocates Appeared:
S. Khound, Advocate, R. Sarmah, Advocate, K. Gogoi, Advocate, C. Baruah, Advocate

Interest on delayed payment of pension is subject to the determination of administrative lapses, as per the relevant rules.

Headnote:

PENSION - Delayed Payment - Assam College Employees (Provincialisation) Act, 2005 - Assam Services (Pension) Rules, 1969, Rule 197-A

Fact of the Case:

The petitioner, a retired Supervisory Assistant, claimed interest on delayed payment of pension under the Assam College Employees (Provincialisation) Act, 2005 and Rule 197-A of the Assam Services (Pension) Rules, 1969.

Finding of the Court:

The court directed the authorities to grant arrears of pension and consider the petitioner's claim for interest on delayed payment, emphasizing the need to determine if there were administrative lapses causing the delay.

Issues: Claim for interest on delayed payment of pension under the relevant rules and determination of administrative lapses causing the delay.

Ratio Decidendi: Interest on delayed payment of pension is contingent on administrative lapses, and the competent authority must determine if such lapses occurred.

Final Decision: The authorities were directed to consider the petitioner's claim for interest on delayed payment of pension and make a decision within three months, taking into account relevant legal precedents.

JUDGMENT

N Kotiswar Singh, J. - Heard Mr. S. Khound, learned counsel for the petitioner. Also heard Mr. K. Gogoi, learned standing counsel, Higher Education Department and Mr. C. Baruah, learned standing counsel, Accountant General.

2. The matter pertains to claim for interest on delayed payment of pension. The petitioner was earlier serving as a Supervisory Assistant in Pandu College, Guwahati and retired from service on 31.01.2006 on reaching the age of 59 years 7 months as per provisions of Assam College Employees (Provincialisation) Act, 2005.

3. It may not be necessary to refer to the earlier litigation at the instance of the petitioner relating to his date of retirement. Suffice to say that this Court in WP(C) No.4067/2008 filed by the petitioner came to the conclusion that the date of retirement of the petitioner is to be treated as 30.06.2005 and not as 30.06.2004 and as such the respondents would be liable to pay pensionary benefits to the petitioner by treating his date of retirement as 30.06.2005. There is no dispute about this factual position.

4. Thus, the petitioner under normal circumstances would be entitled to get pensionary benefit w.e.f. 01.07.2005. However, it seems that the authorities paid the pensionary benefits to the petitioner w.e.f. 01.12.2005 as shown in the revised PPO issued by the office of the Accountant General (A&E), Assam, vide letter dated 15.03.2012. Since the petitioner shall be deemed to have been retired on 30.06.2005 as held by this Court in the above referred writ petition, the petitioner would be entitled to pension w.e.f. 01.07.2005 and not from 01.12.2005. Accordingly, the authorities are directed to grant arrears of pension after making necessary verification for the period from 01.07.2005 to 30.11.2005.

5. There is another claim made by the petitioner i.e. for grant of interest on delayed payment on the strength of Rule 197-A of the Assam Services (Pension) Rules, 1969, which provides for payment of interest on delayed payment of pension and gratuity. It has been submitted by the learned counsel for the petitioner that the petitioner has been given the pension and gratuity belatedly only in the year 2012. As regards payment of interest on delayed payment of pension and gratuity, as provided under Rule 197-A of the 1969 Rules, it can be best appreciated if the relevant Rule is referred to, which reads as follows:-

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"197-A. Interest on delayed payment of Pension and Gratuity-

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(1) If the payment of pension and gratuity has been authorised later than the date when its payment becomes due and it is clearly established that the delay in payment was attributable to administrative lapses, interest shall be paid at such rates as specified under sub-rule (b) of this rule and instructions issued by the Government from time to time: Provided that the delay in payment was not caused on account of failure on the part of the Government servant to comply with the procedures laid down by the Government from time to time for processing his pension papers.

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(2) Every case of delayed payment of pension and gratuity shall be considered by the Secretary of the Department in respect of his employees and employees of its attached and sub-ordinate offices and where the Secretary of the Department is satisfied that the delay in payment of pension and gratuity was caused on account of administrative lapses the Secretary of the Department shall sanction payment of interest with the concurrence of Pension and Public Grievances Department at such rate as prescribed under sub-rule (6) below: ................................................................."

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6. From a reading of the aforesaid Rule 197-A of the 1969 Rules, it appears that interest is not payable automatically on delayed payment. It is only on the condition that such delayed payment of pension was on account of administrative lapses. As for the ascertainment of the administrative lapses, the Rules has provided that it is the S

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