Interest on delayed DCRG payment is mandated under Rule 45-A(I-A) of the Tamil Nadu Pension Rules, post-exoneration, reinforcing the obligation to settle pension benefits timely.

ORDER :

The writ petitioner joined judicial service in 1983. He reached the age of superannuation at 60 years on 30.11.2010. He was then working as III Additional District Judge(PCR), Madurai. On 27.10.2010, he was placed under suspension and vide proceedings dated 29.11.2010, he was not permitted to retire but retained in service. Subsequently, vide proceedings dated 22.07.2011, the disciplinary action initiated against the petitioner was dropped. His suspension was deemed to have been revoked and he was deemed to have retired from the Tamil Nadu State Judicial service on 30.11.2010. The petitioner was able to encash his earned and unearned leave only on 16.02.2012. The petitioner submitted his pension application on 19.03.2012 which was forwarded to the Principal Accountant General, Chennai. On 30.05.2012, the petitioner's service particulars were called for. Upon receipt of the same, the second respondent issued authorisation for pension, commuted value of pension and DCRG. On 07.09.2012, cheque for Rs.10 Lakhs being the DCRG amount was forwarded to the Principal District Judge, Tirunelveli.

2. Since the petitioner received his pensionary benefits including DCRG belatedly, he sought payment of interest for the period of delay. Since his representation did not elicit any response, he filed W.P.(MD)No.13944 of 2014. Vide order dated 03.04.2017, the Government was directed to consider his request. The Government vide the impugned G.O.Rt.No.2170 Public (Special B) Department dated 20.06.2017 sanctioned only a sum of Rs.14,665/- on the belated payment of DCRG of Rs.10 Lakhs. A working sheet was also annexed to the G.O. According to the Government, interest was payable only with effect from 01.07.2012 to 31.08.2012 at 8.8% p.a. Challenging the said G.O and seeking payment of interest for the belated payment of DCRG, earned and unearned leave and commuted value of pension, this writ petition has been filed.

3. The learned counsel appearing for the petitioner submitted that as per the provisions set out in Tamil Nadu Pension Rules, the petitioner is entitled to interest as prayed for. He further submitted that the issue is no longer res integra. He relied on the following decisions:-

i) W.A.(MD)No.599 of 2015( Cardamom Planters' Association College Vs. G.Selva ) dated 06.07.2015.

ii) W.P.No.32476 of 2018 (S.M.Khasim Vs. The Principal Secretary to Government, Chennai) dated 28.02.2022.

iii) W.P.(MD)No.10376 of 2014 ( D.Chandrasekaran Vs. The State of Tamil Nadu ) dated 14.12.2018.

4. Per contra, the learned Standing counsel for the second respondent and the learned Standing counsel for the High Court as well as the learned AGP for the Government submitted that the petitioner is not entitled to any relief.

5. We carefully considered the rival contentions and went through the materials on record.

6. It is not in dispute that the petitioner reached the age of superannuation on 30.11.2010. But he was placed under suspension and retained in service. However, the disciplinary action was eventually dropped and the petitioner was fully exonerated. Therefore, Rule 45-A(I-A) of the Tamil Nadu Pension Rules will apply. It states that interest on DCRG is payable three months from the date of retirement where the Government servant is exonerated of all charges and where the DCRG is paid on the conclusion of disciplinary proceedings. The impugned G.O has failed to take note of this statutory rule. On this ground, the impugned G.O is quashed and the fifth respondent is directed to pay interest for the belated payment of DCRG amount in terms of Rule 45-A(I-A) of the Tamil Nadu Pension Rules, 1978