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2000 Supreme(Raj) 1099

RAJASTHAN HIGH COURT AT JAIPUR BENCH
V.S.Kokje, Arun Madan, JJ.
Surendra Mohan Saxena - Appellant
Versus
State of Rajasthan & ors. - Respondent
D.B. Civil Spl. Appeal (Writ) No.271 of 1999.
Decided On : 31-03-2000

The entitlement to interest on delayed payment of retiral dues and the right to early and expeditious settlement of pension and gratuity, as established by legal principles emphasized by the Apex Court.

Headnote:

PENSIONARY BENEFITS - DELAYED PAYMENT - R.S.R. 286 - The court discussed the provisions of R.S.R. 286, which provides for the payment of provisional pension and gratuity to a gazetted government servant from the date of retirement, irrespective of whether pension papers have been prepared and sent for issuance of pension or not. The court highlighted the failure of the respondent department to comply with the statutory duty under R.S.R. 286, resulting in a delay in settling the pensionary dues. The court also emphasized the statutory duty of the Director Pension Department and the appointing authority in communicating and finalizing pension papers, which were not fulfilled in this case. The judgment referenced legal principles established by the Apex Court in various cases, emphasizing the right to early and expeditious settlement of pension and gratuity, and the entitlement to interest on delayed payment of retiral dues.

Fact of the Case:

The appellant, a retired government servant, filed a writ petition seeking payment of pensionary benefits and interest on delayed payment. The learned Single Judge dismissed the writ petition on the limited issue of interest on delayed payment, as the appellant had already been paid all his dues. The appellant then filed a special appeal claiming payment of interest and costs.

Finding of the Court:

The court found that there was a failure on the part of the respondent department to comply with the statutory duty under R.S.R. 286, resulting in a delay in settling the pensionary dues. The court emphasized the entitlement to interest on delayed payment of retiral dues and allowed the appeal, directing the respondents to pay interest to the appellant.

Issues: The main issue was the entitlement to interest on delayed payment of pensionary benefits, as the appellant had already been paid all his dues. The court also addressed the failure of the respondent department to comply with statutory duties under R.S.R. 286 and R.S.R. 285.

Ratio Decidendi: The court held that the appellant was entitled to claim interest for the delayed payment of his retiral dues, citing legal principles established by the Apex Court emphasizing the right to early and expeditious settlement of pension and gratuity, and the entitlement to interest on delayed payment of retiral dues.

Final Decision: The appeal was allowed, and the respondents were directed to pay interest to the appellant at the rate of 12% per annum from the date of delayed payment of retiral dues. The court also directed the Chief Secretary of the Government of Rajasthan to take initiative to avoid such recurrence of events for the delay in payment of retiral dues in the future.

JUDGMENT

1. - This special appeal arises out of order dated 29.7.1998 of the learned Single Judge in aforesaid writ petition, whereby the learned Single Judge while dismissing writ petition of the appellant on limited issue as to the interest on the payment of pensionary and retiral benefits having been granted and made after about two years of his retirement, declined to grant interest over the same.

2. The facts relevant for deciding this appeal, briefly stated, are that admittedly the appellant (petitioner) retired as Dy. Director, Animal Husbandry Department, Government of Rajasthan on attaining his age of superannuation on 31.7.1995, for which an order dated 11.10.94 (Ann.1) was passed in advance by the Director, Animal Husbandry communicating about it to the all concerned, so as to proceed for preparation of pension papers in time. The case of the appellant is that he should have been given pensionary benefits together with gratuity amount on the date of retirement, itself. But despite his several representations, his retrial dues were not settled in time, resulting in sending notice for demand of justice to the department on 10.8.96 (Ann.5), specifically mentioning therein that the Dy. Secretary, Animal Husbandry Government of Rajasthan by his letter dated 14.3.1996 (Ann.3) had already intimated as to non-pendency of any preliminary or departmental inquiry against him. Thereafter, the petitioner had filed the writ petition for issuing writ of mandamus for payment of pensionary benefits, viz. pension, gratuity and commuted pension along with interest thereon @ 24% per annum from 1.8.95 till the date of payment. Upon notice, reply to the writ petition was filed on 31.1.1997 by the respondent Nos. 1&2 and on 27.2.1997 by the respondent No.3, contending inter alia that though final pension payment order and commutation of pension besides gratuity payment order were issued on or about 11.12.1996 but before it the appellant was already given provisional pension, gratuity etc. by issuing provisional pension and gratuity payment orders on or about 10.9.1996 (Ann.9 & 10) and hence in these circumstances, there was no question of any delay on the part of the respondents inasmuch as this delay had occurred only because of non- submission of the no dues certificate in respect of the house building advance.

3. When the writ petition came up for final disposal, it had been admitted at the bar that the petitioner has been paid all his dues and retirement benefit, therefore, the learned Single Judge observed that the only question remained in the petition was with regard to interest on the delayed payment as the payment was made after about two years. However, the learned Single Judge did not find any justification for granting any interest holding that since substantial relief has been granted to the petitioner, the writ petition has become in fructuous. Hence this special appeal has been preferred by the appellant claiming payment of interest and cost of the writ petition as also of the appeal.

4. We have heard the learned counsel for the parties and considered the documents on record and examined legal aspect of the matter qua the rival contentions made at the bar.

5. R.286, Rajasthan Service Rules, 1951 (for short, "R.S.R.") provides as under:

"286. Payment of provisional pension and gratuity.-(1) A Gazetted Government servant should begin to draw pension from the date he retires from service irrespective of whether pension papers have been prepared and sent to the Director, Pension Department Rajasthan for issue of pension or not. In cases where pension papers have not been prepared and sent to the Director, Pension Department, Rajasthan, the Head of Department shall, after the most careful summary investigation, authorise payment of provisional pension to the extent of 75% of the maximum amount of pension and also of the gratuity to which he is entitled under these rules. If pension papers have been prepared and sent to the Director,
















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