IN THE HIGH COURT OF JHARKHAND AT RANCHI
APARESH KUMAR SINGH, J.
Ramanand Jha “Ramana” - Petitioner
Versus
State of Jharkhand & Ors. - Respondents
Civil Review No. 77 of 2013
Decided On : 21-04-2017
Interest - Delayed Payment of Gratuity - Circular dated 7.11.1981 - [Order XLVII-REVIEW] - The court discussed the circular dated 7.11.1981, which allowed for interest on delayed payment of pension and gratuity under certain conditions. The court also referred to Order XLVII Rule 1 of Civil Procedure Code, which allows for review of judgment based on new and important matter or evidence, mistake, or error apparent on the face of the record.
Fact of the Case:
The petitioner sought relief of interest on delayed payment of gratuity amount, citing a circular dated 7.11.1981. The court found that the petitioner was unable to show any provision of law under which statutory interest is payable on delayed payment of gratuity amount.
Finding of the Court:
The court found that the petitioner failed to justify that the respondents were guilty of delay in releasing the gratuity amount, and therefore, no grounds for review were made out of the impugned judgment.
Issues: The issues revolved around the petitioner's claim for interest on delayed payment of gratuity and the applicability of the circular dated 7.11.1981. The court also considered the maintainability of the review petition and the grounds for review under Order XLVII Rule 1 of Civil Procedure Code.
Ratio Decidendi: The court held that the petitioner did not satisfy the conditions for claiming interest under the circular dated 7.11.1981 and failed to overcome the plea of maintainability for the review petition. The court also emphasized the grounds for review under Order XLVII Rule 1 of Civil Procedure Code.
Final Decision: The instant review petition was dismissed accordingly.
Heard learned counsel for the parties.
2. The order dated 7.5.2012 passed in W.P.S. No. 5626 of 2009 is impugned in the present review petition. Petitioner was unsuccessful in seeking relief of interest on delayed payment of gratuity amount in the said writ petition. As recorded in the said judgment, no provision of law was shown by the petitioner under which statutory interest will be payable on the delayed payment of gratuity amount. Petitioner, being aggrieved, went in appeal against the said judgment before the Letters Patent Court. L.P.A No. 392 of 2012 was disposed of as withdrawn. The permission to withdraw the appeal was granted on the plea that the Appellant wanted to file a review application before the learned Single Judge. Thereafter in the instant review petition petitioner has relied upon a circular dated 7.11.1981 bearing memo no. PC-2-1-46/79/3155 of the Government of Bihar on the subject of payment of interest on delayed payment on all kinds of pension including Family pension and Death-cum-Retirement Gratuity. It is appropriate to quote the text of executive instruction:-
“In spite of the various measures taken so far in checking delay in the disposal of pension cases, Government are distressed to find that the delay has not yet been altogether eliminated resulting in financial distress and pecuniary loss to pensioners and families of deceased Government servants. In view of the above and considering the desirability of paying compensation to sufferers by way of interest and imposing monetary punishment to Government servants responsible for delay the State Government have decided as follows:-
(a) Interest shall be allowed on delayed payment of all kinds of pension (including family pension) and D.C.R Gratuity @ 5% per annum for the period beyond three months after the pension/D.C.R Gratuity be-comes due and shall be payable till the end of the month preceding the month in which the payments of final pension actually begins and/or the payment of D.C.R, Gratuity is actually made. The interest shall be allowed only where it is clearly established that the payment of pension/D.C.R Gratuity was delayed on account of administrative laps or for reasons beyond the control of the retired Government servants. Each case of payment of interest shall be considered by the concerned Administrative Department in consultation with the Finance Department and the payment of interest must be authorised through a Government order. In all cases, where interest is paid the entire amount of interest shall be realised from the Government servants responsible for the delay.
(b) Only provisional pension is authorised to Government servants who are under suspension or against whom Departmental proceedings or enquiries have not been concluded on date of their compulsory retirement vide Finance Department's memo No. 9144 F. dated 22.8.74. According to this circular no final pension and D.C.R Gratuity is paid in such cases until the conclusion of the proceedings and the issue of final orders thereon. Therefore in such cases the final pension and the D.C.R Gratuity if allowed to be drawn by the competent authority on the conclusion of the proceedings; would be deemed to have fallen due on the date of issue of orders by the competent authority and if payment is not made immediately after three months of the finalisation interest shall be allowed.
(c) The payment of interest, however, would not apply in cases of payment of arrears of pension/gratuity which become due as a result of enhancement of the emoluments, after retirement/death or liberalisation of Bihar Pension Rules from a date prior to the date of retirement/death of the Government servants.
2. These order shall take effect in cases of Government servants who retire/die on or after the date of issue of this order. The cases of those Government servants who retired/died before this date shall also be covered by these orders, if, in their cases pension/D.C.R Gratuity is not paid wit
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