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2021 Supreme(Raj) 2036

RAJASTHAN HIGH COURT
Arun Bhansali, J.
Surendra Dasani - Appellant
Versus
State of Rajasthan & Ors. - Respondents
S.B. Civil Writ Petition No. 12464/2021
Decided On : 17-12-2021

Advocates appeared:
Mr. Kuldeep Mathur., for the Appellant; Mr. K.S. Rajpurohit, Aag. Mr. Ravi Panwar., for the Respondent.

A government servant exonerated from inquiry is entitled to interest on delayed retiral benefits as per the applicable rules.

Headnote:

Interest - Retirement Benefits - Rajasthan Civil Services (Pension) Rules, 1996 - The court interpreted Rule 89 and Note (ii)(a) to establish entitlement to interest on delayed payment of retiral benefits, emphasizing the conditions under which interest is payable.

Fact of the Case:

The petitioner sought interest on delayed retirement benefits due to an inquiry that delayed payment. After exoneration, benefits were paid, but the petitioner claimed interest from the due date.

Finding of the Court:

The court found that the petitioner was entitled to interest on delayed payment of retiral benefits as per Rule 89 and Note (ii)(a) of the Rajasthan Civil Services (Pension) Rules, 1996.

Issues: Whether the petitioner is entitled to interest on delayed payment of retiral benefits after being exonerated from charges.

Ratio Decidendi: The court held that under Rule 89, if retiral benefits are delayed beyond 60 days and the delay is not due to the employee's fault, interest at 9% is payable from the due date.

Result: The petition is allowed; respondents must pay interest on delayed retiral benefits.

ORDER

1. This writ petition has been filed by the petitioner seeking direction to the respondents to pay interest on delayed payment of retirement benefits from 01.12.2017 to 28.04.2021 @ 9% per annum.

2. It is inter alia indicated in the writ petition that the petitioner was due to retire on 30.11.2017, a charge-sheet under Rule 16 of the Rules of 1958 dated 01.11.2017 was served on the petitioner, based on which, he was not paid the retiral benefits and was paid provisional pension only.

3. After conclusion of the inquiry, the inquiry officer gave report dated 30.7.2017 (Annex.3) exonerating the petitioner from all the charges. The inquiry report came to be accepted by the State by its order dated 12.3.2020 (Annex.4). Whereafter, a certificate pertaining to no-dues and non-pendency of any proceeding against the petitioner was issued to the petitioner on 12.6.2020 and ultimately the retiral benefits with issuance of PPO, gratuity and commutation etc. were given on 20.3.2021.

4. It is submitted by learned counsel for the petitioner with reference to provisions of Rule 89 of the Rajasthan Civil Services (Pension) Rules, 1996 C the Rules of 1996') that if the payment of retiral benefits are authorized after 60 days from the date when its payment became due, interest @ 9% from the date retiral benefits become due, would be paid till the end of the month preceedings the month in which retiral benefits are authorized.

5. Further reference has been made to Note (ii)(a), which deals with exoneration of a Government servant and it is submitted that the petitioner is entitled to interest as prayed in the writ petition.

6. Learned Addl. Advocate General appearing for the State submits that as soon as the petition was exonerated in the departmental inquiry, the respondents have proceeded to make payment to the petitioner and as such he is not entitled to any interest on the purported delayed payment.

7. Learned counsel appearing for the Pension Department made submissions that needful has been done as soon as the requisite has been received by the department and as such the petitioner is not entitled to any relief.

8. I have considered the submissions made by learned counsel for the parties and have perused the material available on record.

9. The dates, as indicated hereinbefore, are admitted, which are based on the documents annexed with the writ petition, whereby, the petitioner was due to retire / retired on 30.11.2017 and the inquiry against the petitioner after submissions of the inquiry report, came to be dropped by order dated 12.3.2020 and the petitioner, who was granted provisional pension by order dated 16.4.2018, was granted full pension, gratuity and commutation etc. by orders dated 20.3.2021.

10. The relevant provisions of the Rajasthan Civil Services (Pension) Rules, 1996, reads as under:-

    "Rule 2.......

(s) 'retirement benefit' includes pension or service gratuity, and retirement gratuity where admissible;

Rule 89. Interest on delayed payment of retiral benefits;

(1) If the payment of retiral benefits has been authorized after 60 days from the date when its payment became due, and it is established that the delay in payment was not on account of failure on part of the Government servant in compliance of the procedure laid down in this chapter or elsewhere in these rules, interest @ 9% per annum from the date retiral benefits become due would be payable till the end of the month preceeding the month in which the retiral benefits are authorized.

Notes

(i) ...........

(ii) In case of a Government servant against whom disciplinary / judicial proceedings are pending on the date of retirement, no retiral benefits be paid except provisional pension, until the conclusion of the proceedings and the issue of the final orders thereon. If, on the conclusion of the disciplinary / judicial proceedings:-

(a) a Government servant is fully exonerated the retiral benefits may be deemed due on the date following the date of retirement and the interest on del

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