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2006 Supreme(J&K) 2

IN THE HIGH COURT OF JAMMU AND KASHMIR AT SRINAGAR
Mansoor Ahmad Mir, J.
Mubarik Ahmad (Dr.) - Appellant
Versus
State Of J&K & Ors. - Respondent
SWP No. 1433/1999
Decided On : 01 January, 2006

Advocates Appeared:
Advocate For Appellant: H.I. Hussain
Advocate For Respondent: A.M. Magray
Advocate For Respondent: S.A. Naik

Entitlement to interest on delayed pension settlement.

Headnote:

PENSION CASE - Employee Pension - Jammu & Kashmir State Constitution, Article 226, Section 103 - AIR2000 SC 3513, AIR 1999 SC 1212, AIR 2003 - The court discussed the entitlement of interest on delayed pension settlement, the duty of the employer to process the case of the employee in time, and the obligation of the government to follow pension rules and instructions. The court cited cases to support the entitlement of interest on delayed payment of pension and retiral benefits.

Fact of the Case:

The petitioner filed a writ petition seeking settlement of his pension case with interest and compensation due to the delay caused by the respondents. The respondents claimed that the petitioner was negligent in completing the formalities for his pension case.

Finding of the Court:

The court found that the respondents failed to settle the pension case of the petitioner in time without justification. The court cited precedents to support the entitlement of interest on delayed pension settlement.

Issues: Delay in pension settlement, negligence of the employer, entitlement to interest on delayed pension settlement.

Ratio Decidendi: The court held that the petitioner is entitled to 18% simple interest from the date he was entitled to pension till the date of settlement, citing precedents to support the entitlement of interest on delayed pension settlement.

Final Decision: The court directed the respondents to calculate and release the 18% interest to the petitioner within three months.

1. The petitioner has filed this writ petition in terms of Article 226 of the Constitution of India read with Section 103 of Jammu & Kashmir State Constitution, for commanding the respondents to settle the pension case of the petitioner at the rate of 18% interest and to award compensation in favour of the petitioner on the grounds taken in the writ petition, which can be aptly and precisely summarized as under: -

The petitioner, who was the employee of Health Department, attained the age of superannuating in terms of annexure-P2. The respondents had not settled the pension case of the petitioner in time which constrained the petitioner to file the present petition. The petitioner has prayed for grant of following reliefs:-

"(a) Writ of mandamus, commanding the respondents to take effective and proper steps and to settle the pension case of the petitioner and to release all pensioner benefits, gratuity and other Service benefits to which the petitioner is otherwise entitled to under rules, and further,

(b) by issuance of an appropriate writ, all service benefits be released retrospectively with interest at 18% applicable for all nationalize banks and further,

(c) by issuance of appropriate writ, direction or order, the petitioner be awarded compensation to the tune of Rs. five lacs and, further,

(d) by issuance of an appropriate writ, direction or order, the respondents barring the respondent No.3 (Chief Medical officer, Pulwama) be commanded to initiate disciplinary action proceedings against Respondent No.3 in committing intentional and deliberate delay towards the settlement of the pension case of the petitioner and necessary orders be issued against respondent No. 3 and respondent No. 3 be penalized for making deliberate attempt in causing harm to the petitioner and effecting service rights and benefits of the petitioner. "

2. This Writ petition came to be admitted vide order dated 10th September, 1999. The respondents 1 and 2 have filed reply. It is profitable to reproduce para (a) of the preliminary objections, herein, which read as under :-

"(a) That petitioner was asked by the CMO, Pulwama to provide relevant service record in order to complete his pension case. The service book of petitioner was not supported with the history sheet w.ef 14.6.61 i.e. the date of first appointment on 30.4.77 and service history sheet had to be completed from the records. Not only that the service records was also not complete in respect of time bound promotion as petitioner had not applied for time bound promotion well in time during his service period, so the same has now been completed after petitioner s retirement. It is pertinent to mention it here that the petitioner had spent a period of about 9 years in foreign assignment during his service period with the result his service record was not complete due to his absence from duty. Petitioner was also required under rules to provide No Demand Certificate from the Estates Department as required under rules for completion of his pension case. Petitioner did not provide Form (A) and no demand certificate and other service record neither to the respondent No.5(Accountant General) nor to the parent department for completion of his pension case. However, the pension case of petitioner has now been submitted to the respondent No. 5 without aforementioned documents. So at no point of time, answering respondents can be held liable for not completing the pension case of petitioner. It is only because of negligence of petitioner that the pension case has not been settled, as petitioner did not complete the formalities. The writ petition, as such is. not maintainable and is liable to be dismissed. "

3, Petitioner has filed rejoinder affidavit. It is profitable to reproduce para-1 of the rejoinder affidavit, herein, which reads as under-

"l/ That the facts stated in the heading preliminary objections points towards the negligence and undue delay caused by the respondents 1 and 2 in completing th














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