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2016 Supreme(Raj) 1
IN THE HIGH COURT OF JUDICATURE FOR RAJASTHAN AT JODHPUR
JAISHREE THAKUR, J.
Dr. Moola Ram Choudhary - Petitioner
Vs.
The State of Rajasthan & ors. - Respondents
S.B. Civil Writ Petition No.12239/2013
Decided on : 05.01.2016
Advocate Appeared:
Mr. Jagdish Vyas, for the petitioner
Mr. N.S. Rajpurohit and Ms. Kusum Rao, for respondents
Government servants are entitled to interest on the delayed payment of retirement benefits if the delay is not attributable to them.
Headnote:
RETIREMENT BENEFITS - INTEREST ON DELAYED PAYMENT - RAJASTHAN CIVIL SERVICES PENSION RULES, 1996 - RULE 89 - INTEREST ON DELAYED PAYMENT OF RETIREMENT BENEFITS - DELAY IN PAYMENT OF RETIREMENT BENEFITS DUE TO PENDING DISCIPLINARY PROCEEDINGS - ENTITLEMENT TO INTEREST ON DELAYED PAYMENT - COMMUTATION OF PENSION - CALCULATION OF COMMUTATION AMOUNT - CONSIDERATION OF AGE ON DATE OF SUPERANNUATION.
Fact of the Case:
The petitioner, a former Rajasthan Administrative Service officer, sought voluntary retirement in 2010. However, due to pending disciplinary proceedings, his retirement benefits were withheld. He approached the High Court, which directed the release of all retirement benefits by January 2013. The petitioner received his revised pension, gratuity, and leave encashment in June 2013, but without interest for the delayed payment. He challenged the denial of interest and the calculation of the commutation amount.
Finding of the Court:
The High Court held that the petitioner was entitled to interest on the delayed payment of retirement benefits, including pension, leave encashment, and other retiral benefits (excluding gratuity, as interest had been paid during the pendency of the proceedings) from the date of retirement until actual payment. The court also directed the respondents to recalculate the commutation amount considering the petitioner's age on the date of superannuation and release the arrears, if any, within two months. Failure to comply with the court's order would result in further interest at the rate of 12% until actual payment.
Issues: 1. Whether the petitioner was entitled to interest on the delayed payment of retirement benefits due to pending disciplinary proceedings. 2. Whether the commutation amount should be calculated considering the petitioner's age on the date of superannuation.
Ratio Decidendi: 1. Rule 89 of the Rajasthan Civil Services Pension Rules, 1996 provides for the payment of interest at 9% per annum on delayed payment of retirement benefits if the delay is not attributable to the government servant. In this case, the delay in payment was due to the pendency of disciplinary proceedings, which were ultimately dropped. Therefore, the petitioner was entitled to interest on the delayed payment of retirement benefits. 2. The commutation of pension is a facility provided to the employee, and the duration is fixed with reference to age as the number of years purchased. Since the petitioner was entitled to pensionary benefits on the date of retirement, the commutation amount should have been calculated considering his age on that date.
Final Decision: The High Court allowed the writ petition and directed the respondents to release interest at 9% on the delayed payment of retirement benefits within two months. The court also directed the respondents to recalculate the commutation amount considering the petitioner's age on the date of superannuation and release the arrears, if any, within the stipulated period.
1. The petitioner has filed the present writ petition seeking a direction for release of interest on late payment of retiral benefits along with correction value of commutation of pension and to release the value of pension by considering the age of the petitioner on the date of retirement, i.e. 5.7.2010.
2. The petitioner joined service of the State of Rajasthan on 13.11.1978 and was thereafter promoted in the Rajasthan Administrative Service. On completion of service, the petitioner working in Senior School of Rajasthan Administrative Service and sought voluntary retirement on 5.10.2010. On 17.6.2009, a charge-sheet was served under Rule 16 of the Rajasthan Civil Services (Classification, Control and Appeal) Rules, 1958. In response to the charge-sheet, the petitioner submitted a written statement denying all the charges levelled against him. On account of certain family circumstances, the petitioner served notice dated 3.3.2010 for voluntary retirement under Rule 50 of the Rajasthan Civil Services Pension Rules, 1996. The same was accepted vide order dated 30.6.2010 and the petitioner was ordered to be retired with effect from 5.7.2010 keeping the enquiry pending. The petitioner on retirement was entitled to all retiral benefits including pension, retiral gratuity and encashment of un-utilized privilege leave, but on account of the pendency of the disciplinary proceedings, the retiral benefits were with held by the respondents. Several requests were made for release of pension and, ultimately, provisional pension was allowed by PPO No. 773676 (R) dated 19.7.2011 and the same was made to the petitioner on 11.8.2011. As the disciplinary proceedings were continuing against the petitioner, the petitioner approached this Court by way of filing S.B. Civil Writ Petition No. 6900/2012 praying for dropping of the proceedings initiated against him. This Court vide judgment dated 6.11.2012 allowed the writ petition by quashing the proceedings and further gave a direction to the respondents to settle all post retiral benefits of the petitioner expeditiously as far as possible on or before 31.1.2013. After the aforesaid judgment was passed by this Court, the petitioner again submitted three sets of pension papers and requested the respondents to settle all post retiral benefits together with interest on delayed payment of retiral benefits in terms of Rule 89 of the Pension Rules.
3. Since the retiral benefits were not allowed to the petitioner, he again submitted representation dated 5.3.2013 and thereafter issued a legal notice on 11.4.2013 and, ultimately, the respondents sanctioned retiral benefits in favour of the petitioner in the first week of June, 2013 without affording any interest on the delayed payment of retiral benefits. Gratuity payment order was also issued on 5.6.2013 whereby gratuity of Rs. 7,92,396/- was sanctioned in favour of the petitioner. The petitioner has submitted an application for commutation of pension in the prescribed form and the commutation of pension was sanctioned on 7.6.2013 and pursuant thereto, a sum of Rs. 5,48,931/- was paid to the petitioner in June,2013. The commutation was allowed to the petitioner considering the age of the petitioner as on the date of sanction. The petitioner was also entitled for leave encashment for un-availed privilege leave and the same has not been paid to him. Aggrieved against the non-release of retiral benefits, wrong calculation of value of commutation, denial of interest of delayed payment etc., the present writ petition has been filed.
4. Notice was issued of the said writ petition and the reply has been filed on behalf of the respondents no.1,3 and 4, wherein it is denied that the petitioner is entitled to any interest on delayed payment on account of the fact that there were disciplinary proceedings pending against him. On behalf of respondents no.3 and 4 reply has been filed that there is no delay caused on the part of the respondent in grant of pension and
