IN THE HIGH COURT OF JUDICATURE AT MADRAS
V. BHAVANI SUBBAROYAN, J.
Dr. N. Soundaram - Appellant
Versus
The Secretary to Government, Health and Family Welfare Department & Another – Respondents
W.P. No. 26329 of 2017 & W.M.P. No. 27985 of 2017
Decided on : 15-03-2024
Interest - Terminal Benefits - Tamil Nadu Pension Rules, 1978 Rule 45A - The court held that the petitioner is entitled to belated payment interest on all terminal benefits including DCRG covered by Rule 45A of the Tamil Nadu Pension Rules, 1978. The court awarded interest at the rate of 6% per annum from the date of retirement till the date on which the terminal benefits had been disbursed to the petitioner.
Fact of the Case:
The petitioner, a Medical Graduate, sought interest on belated payment of terminal benefits after facing delays in receiving her pension and other benefits following her retirement. The court considered the delay in the disbursement of the benefits and the petitioner's entitlement to interest as per the statutory rules and relevant court rulings.
Finding of the Court:
The court found that the petitioner was entitled to belated payment interest on all terminal benefits including DCRG covered by Rule 45A of the Tamil Nadu Pension Rules, 1978. The court awarded interest at the rate of 6% per annum from the date of retirement till the date on which the terminal benefits had been disbursed to the petitioner.
Issues: The main issue was whether the petitioner is entitled to get interest for the belated payment of terminal benefits except death cum retirement gratuity which is already disbursed to the petitioner.
Ratio Decidendi: The court relied on the relevant provisions of the Tamil Nadu Pension Rules, 1978, particularly Rule 45A, and considered the petitioner's entitlement to interest as per the statutory rules and relevant court rulings. The court also referenced a decision of the Hon'ble High Court of Punjab and Haryana to support the petitioner's entitlement to interest on the belated payment of terminal benefits.
Final Decision: The Writ Petition was allowed, and the respondents were directed to pay 6% interest for the terminal benefits except DCRG, from the date of retirement till the date on which the terminal benefits had been disbursed to the petitioner, within a period of four weeks from the date of receipt of a copy of this order.
JUDGMENT :
(Prayer: Writ Petition is filed under Article 226 of the Constitution of India, to issue a Writ of Certiorarified Mandamus, calling for the records relating to the Government Letter No.222/EZ2/2015 issued by the Secretary to Government, Health and Family Welfare Department dated 16.06.2017 in rejecting the claim of the petitioner for interest on the belated terminal benefits, and quash the same and direct the respondents to disburse the interest on belated payment of Commutation of Pension etc., as per the rulings of the Hon'ble Supreme Court and the Hon'ble High Court.)
1. This Writ Petition is filed challenging the impugned order passed by the 1st respondent in Letter No.222/EZ2/2015 dated 16.06.2017, for rejecting the claim of petitioner for interest on belated payment of terminal benefits.
2. The petitioner, who is a Medical Graduate, was appointed as Assistant Surgeon in Government Dispensary Ganapathypuram in Kanyakumari District on 20.12.1970. She worked in various places in the State of Tamilnadu and gained many promotions. She attained age of Superannuation on 31.05.2005, but she was not permitted to retire on the ground that disciplinary proceedings were pending against her for certain irregularities. As there was no progress in the disciplinary proceedings, the petitioner moved a writ petition in this Court in W.P.No.17307 of 2013 seeking a direction to the 1st respondent to pass final orders in the disciplinary proceedings. The said petition was allowed directing the 1st respondent to pass final orders in the disciplinary proceedings, on merits and in accordance with law, within a period of twelve weeks from the date of receipt of a copy of the order. Thereafter, the disciplinary action initiated under Rule 17(b) of TNCS (D&A) Rules, against the petitioner was dropped by G.O.(D).No.871 Health and Family Welfare (K1) Department, dated 20.08.2013. The same was communicated to the petitioner on 17.09.2013 in Ref.No.50139/SC1/1/2005-1. The terminal benefits of the petitioner were thereafter paid to her as per the particulars shown below:-
| S.No | Name of the Benefits | Amount | Due Date | Delay |
| 1 | Pension | Rs.12,60,261/- | 31.05.2005 | 9 years |
| 2 | Commutation | Rs.3,45,180/- | 31.05.2005 | 9 years |
| 3 | DCRG | Rs.3,50,000/- | 31.05.2005 | 10 years |
| 4 | Interest for belated payment of DCRG | Rs.4,04,131/- | 31.05.2005 | 11 years |
| 5 | SPF | Rs.22,059/- | 31.05.2005 | 10 years |
| 6 | EL Encashment | Rs.2,91,301/- | 31.05.2005 | 11 years |
3. The grievance of the petitioner is that, In spite of the above Government Order dated 20.08.2013, the petitioner was sanctioned pension and disbursed her DCRG and other terminal benefits only on 15.11.2014, 07.05.2015 and 15.05.2015. There was a delay of 14 months from the date of permitting to retire orders was passed. Though DCRG and other terminal benefits are disbursed after the delay of more than 10 years, no interest was paid as per the statutory rules on the delay of payment of gratuity and commutation of pension. Hence, the petitioner gave a representation to the 1st respondent on 11.06.2015 claiming interest at the rate of 18% on the belated payment as per the Supreme Court Ruling and Pension Rules. As no orders were passed by the respondents on her representation, the petitioner approached this Court by filing a writ petition in W.P.No.22400 of 2015 seeking a direction to the respondents to dispose of her representation dated 11.06.2015. The said petition was allowed by this Court directing the 1st respondent to pass orders on the representation dated 11.06.2015 for interest on the belated settlement of terminal benefits in the light of decision of the Division Bench in State of Tamil Nadu, Represented by the Secretary to the Government - Vs - Deivasigamani (2009 (3) MLJ 1) within a period of 12 weeks from the date of receipt of a copy of the
The main legal point established in the judgment is that under Rule 45A of the Tamil Nadu Pension Rules, 1978, a retired person is entitled to belated payment interest on all terminal benefits, inclu....
Entitlement to claim interest for belated settlement of terminal and pensionary benefits as per the established legal proposition.
Retired employees are entitled to interest on delayed terminal benefits.
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