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2021 Supreme(Ker) 1054

IN THE HIGH COURT OF KERALA AT ERNAKULAM
ALEXANDER THOMAS, K. BABU, JJ.
G.Raghunathan, (Retired As Junior Laison Officer, Coffee Board), S/o. Gangadharan – Appellant
Versus
Coffee Board Represented By Its Chairman – Respondent
WA No. 578 of 2021
Decided on : 11-10-2021

Advocates:
Advocate Appeared:
For the Appellant : P.B.Krishnan, Sri.P.B.Subramanyan, Sri.Sabu George
For the Respondent: E.K.Nandakumar (Sr.), Shri.P.Vijayakumar, M.Gopikrishnan Nambiar, K.John Mathai

Point of Law: Pension - Pension, gratuity and other retirement benefits are no longer matters of any bounty to be distributed by the Government but are valuable rights acquired and property in their hands and any delay in settlement and disbursement whereof should be viewed seriously and dealt with severely by imposing penalty in the form of payment of interest.

Headnote:

Service Matter - Attaining the age of superannuation - Retirement benefits were not disbursed to the appellant within one month of the retirement - To pay interest @ 18% per annum for the period of 8 months of delayed payment of retirement benefits to the petitioner.

Finding of the Court:

There is no specific statutory provision mandating payment of interest for the delayed disbursement of pension/commuted value of pension and other retirement benefits - Delay in the payment of retirement benefits to the appellant was attributable to administrative lapses and the delay in payment was not caused on account of failure on the part of the appellant to comply with the procedure laid down by the authorities for processing his pension papers - There is delay in payment of retirement benefits, including pension/commuted value of pension and gratuity. In terms of Rule 68(1) of the CCS (Pension) Rules, 1972 interest shall be paid for the delay in disbursement of gratuity.

Result: Disposed of

JUDGMENT :

K.BABU, J.

This appeal arises from the judgment dated 28-01-2021 in W.P(C).No.4120/2014 passed by a learned Single Judge of this Court. By the impugned judgment, the learned Single Judge declined to grant any reliefs to the appellant/petitioner and closed the writ petition.

2. The appellant instituted the writ petition with the following prayers:

    (i) Issue a writ of certiorari or any other appropriate writ or order quashing Ext.P18.

(ii) Issue a writ of certiorari or any other appropriate writ or order quashing Ext.P10.

(iii) Issue a writ of certiorari or any other appropriate writ or order quashing Ext.P16.

(iv) Issue a writ of mandamus or any other appropriate writ or direction directing respondent No.1 to pay interest @ 18% per annum for the period of 8 months of delayed payment of retirement benefits to the petitioner.

(v) Issue a writ of mandamus or any other appropriate writ, order or direction to consider Ext.P19 within a time frame to be fixed by this Hon’ble Court.

(vi) Grant the petitioner such other appropriate reliefs that this Hon’ble Court may deem fit to grant. &

(vii) Award the petitioner the costs of this writ petition.

3. Heard Sri.P.B.Krishnan, the learned counsel appearing for the appellant, Sri.M.Gopikirishnan Nambiar, the learned Standing Counsel for respondents 1 & 2, and Sri.P.Vijayakumar, the learned Assistant Solicitor General of India, appearing for respondent No.3.

4. The appellant served the Coffee Board for 36 years and retired as a Junior Liaison Officer on 29-08-2008 on attaining the age of superannuation. The retirement benefits were not disbursed to the appellant within one month of the retirement. The appellant submitted a series of representations. The retirement benefits were disbursed only in April, 2009. Hence, the appellant sought interest for the delayed payment of amounts due to him.

5. Respondents 1 and 2 resisted the claim of the appellant, contending that the delay caused in disbursing the retirement benefits was not deliberate or intentional. It was further submitted that the delay caused at different levels was mainly on account of the implementation of the VIth Central Pay Commission and would not have arisen in any normal circumstances. Respondents 1 and 2 further submitted that the delay in disposal of cases of pension fixation of officials in 'pay-cell' was mainly due to the dearth of trained personnel, which hampered the speedy disposal of such cases. Respondents 1 and 2 also contended that the writ petition was filed five years after the disbursement of the retirement benefits and the appellant has not explained the delay in instituting the writ petition.

6. The learned counsel for the appellant contended that as per Rule 65(1)(a) of CCS (Pension) Rules, 1972, the Accounts Officer shall, on receipt of the pension papers, apply the requisite checks, record the account enfacement and assess the amount of pension and gratuity and issue the payment order not later than one month in advance of the date of retirement of the Government servant. It is further contended that the Chairman or the Director of Finance has not acted in terms of the provisions of the CCS (Pension) Rules, 1972 despite the fact that the appellant had applied for superannuation pension on 25-02-2008 itself with all relevant records. The learned counsel for the appellant submitted that provisional pension should have been paid to the appellant in case of anticipated delay in disbursement of retirement benefits in view of the O.M No.11(6)-E, V(A)/73 dated 22-07-1974 of the Ministry of Finance.

7. The learned Standing Counsel for respondents 1 and 2 relying on Anx.R1(a) submitted that the appellant as early as on 24-11-2008 had opted for fixation of pension in tune with the VIth Pay Commission, and hence, the appellant was well aware of the reasons for the delay caused in the disbursement of retirement benefits. The learned Standing Counsel submitted that there is no satisfactory explanation on the part of the appe

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