Pension and gratuity are valuable rights and any culpable delay in their disbursement must be visited with the penalty of payment of interest at the current market rate till actual payment.

1. Heard Mr.Bharath Chakravarthy, learned counsel appearing for the petitioner; Mr.N.Jothi, learned counsel appearing for respondents 1 and 2 and Ms.D.Geetha, learned counsel appearing for the 3rd respondent.

2. Challenging the order dated 17.11.2004 passed by the 1st respondent, seeking to quash the same and for a consequential direction to the respondents to pay interest on the belated payment of pension, commuted value of pension, DCRG and encashment of leave (EL and UEL) on retirement at the rate of 24% per annum from the date on which the amounts became due till date of disbursement with further interest on the interest amount due till the date of disbursement to him, the petitioner has come up with the present writ petition.

3. According to the petitioner, he was working as a Professor in Tamil Nadu Agricultural University (hereinafter referred to as 'the University') and posted at the Regional Research Station at Virudhachalam under the control of the 3rd respondent. He attained the age of superannuation and retired from service with effect from the afternoon of 30.09.2003 and on that day, he was relieved of all his duties. It is his case, that even before his superannuation from service, by an order dated 19.05.2003, he was directed to submit the records and photographs and accordingly, he submitted all the records and forms as requested therein. Though there was no problem whatsoever in his retirement, for the reasons best known to the respondents, he was not promptly paid his pension and other retiral benefits and he was left high and dry and was made to run from pillar to post for grant of his pensionary and other benefits.

3a. It is the further case of the petitioner that in spite of his repeated representations, he was not paid any of the retirement benefits for a period of one year from the date of his retirement. After reminders and frequent visits to the office of the respondents, the respondents disbursed the monthly pension, commuted value of pension, DCRG and encashment of leave to the petitioner only in the months of September and October 2004. The following are the details of the same:

S.No.

Nature of Benefit

Amount

Date of payment

Date on which the amount is due

1

Monthly Pension from October 2003 to August 2004 paid in one instalment

Rs.1,20,088/- @Rs.9070/- per month

2904

11003

2

Commuted value of pension

Rs.2,69,168/-

3904

11203

3

DCRG

Rs.3,50,000/-

21.10.2004

11203

4

Encashment of Leave (EL and UEL on PA) payable on the date of retirement

Rs.1,51,427/-

21.10.2004

21003

3b. The petitioner further stated that all his retirement amounts were paid very belatedly for no reason whatsoever. Even the above said payments were made after repeated representations and reminders. Thereafter, the petitioner made a representation on 30.10.2004, requesting the respondents to pay interest on the belated payments duly enclosing the Government Orders passed in that regard, upon which now the 1st respondent passed the impugned order dated 17.11.2004, refusing to pay interest on the ground that the proposals for grant of pension and other benefits were received belatedly and hence interest cannot be paid. It is his case that even after the said letter, he made repeated representations on 28.01.2005, 24.03.2005, 30.04.2005, 08.06.2005 and 04.08.2005 which have not evoked any positive response from the respondents. Therefore, having no other alternative remedy, the petitioner has filed this writ petition for grant of the above relief.

4. Respondents have filed counter affidavit, wherein, it is stated as follows:

(i) The Petitioner, a retired Professor of Soil Science, Regional Research Station, Virudhachalam has already filed a writ petition in W.P.No.7449/2006 praying to quash the order dated 17.5.2002, vide proceedings No.DR/TRRI/DT/3398/2002 issued by the Director, Tamil Nadu Rice Research Institute, Aaduthurai (wherein the suspension period of 257 days have been treated as Earned Leave for 237 days and extraordinary leave on loss of pay