IN THE HIGH COURT OF ORISSA AT CUTTACK
B.R. SARANGI, SAVITRI RATHO, JJ.
Principal Accountant General (A&E), Orissa, Bhubaneswar - Petitioner
Versus
Bijaya Prasad Kanungo & Others - Opp. Parties
W.P(C) No. 2100 of 2014
Decided On : 10-05-2022
DCRG - Delayed Payment of Statutory Dues - Orissa Pension Rules, Rule-49(5) - The court discussed the delay in disbursement of DCRG and the liability to pay interest. It highlighted the provisions of Rule-49(5) of the Orissa Pension Rules, which prescribes interest for delayed payment of gratuity. The court referred to case law and previous judgments to support the entitlement of interest for delayed payment of statutory dues.
Fact of the Case:
The petitioner sought to quash orders related to the delayed disbursement of retirement gratuity (DCRG) and subsequent interest payments. The court analyzed the delay in disbursement, liability for interest, and compliance with Orissa Pension Rules.
Finding of the Court:
The court found that there was a delay in disbursement of DCRG and discussed the liability to pay interest. It concluded that the petitioner is liable to pay interest as per Rule-49(5) of the Orissa Pension Rules, and the orders related to interest payments must be complied with.
Issues: Delay in disbursement of DCRG, liability for interest payments, compliance with Orissa Pension Rules.
Ratio Decidendi: The court held that the petitioner is liable to pay interest for delayed disbursement of DCRG as per Rule-49(5) of the Orissa Pension Rules and previous case law.
Final Decision: The writ petition was dismissed, and the court directed the petitioner to comply with the orders related to interest payments. No costs were awarded.
JUDGMENT :
B.R. Sarangi, J.
The Principal Accountant General (A&E), Odisha, Bhubaneswar has filed this writ petition seeking to quash the order dated 04.03.2011 passed in O.A. No.52 of 2009 and subsequent order dated 14.11.2012 passed in R.P. No.131 of 2011 and order dated 28.11.2013 passed in M.P. No.504 of 2012 by the Odisha Administrative Tribunal, Bhubaneswar vide Annexures-1, 2 and 3 respectively.
2. The factual matrix of the case, in brief, is that opposite party no.1, who was applicant in O.A. No.52 of 2009, while working as Assistant Executive Engineer under the Government of Odisha, Water Resources Department, was superannuated from service on 30.04.2003. His pension papers were forwarded by the concerned pension sanctioning authority on 03.08.2005, which were received in the office of the petitioner on 03.08.2005. While forwarding the pension papers, the concerned pension sanctioning authority, vide letter dated 03.08.2005, had requested the petitioner that the retirement gratuity of opposite party no.1 shall be released after receipt of final NDC from the Department. The pension case of opposite party no.1 was processed and pension payment order and commuted value of pension were issued in September, 2005. But the DCRG amount could not be authorized simultaneous with issuance of pension payment order & commuted value of pension, as no specific NDC received from the pension sanctioning authority. Thereafter, the petitioner issued reminders, vide letters dated 17.02.2006, 10.04.2007 and 31.01.2008, to the pension sanctioning authority for supply of final NDC in respect of opposite party no.1. Finally, opposite party no.1 through his representation dated 12.03.2008 had supplied copy of the letter dated 25.08.2007, on the basis of which, the petitioner had authorized DCRG amounting to Rs.2,09,138/- in favour of opposite party no.1, vide letter dated 26.03.2008, which was released in favour of him.
2.1 Due to delay caused in disbursement of DCRG, opposite party no.1 filed O.A. No.52 of 2009 claiming interest on delayed payment of DCRG. The tribunal, vide order dated 04.03.2011, directed that opposite parties no.2 & 3 are to pay interest at the rate of 7% per annum on the gratuity amount of opposite party no.1 from one year after the retirement of opposite party no.1, i.e. from 01.05.2004 to 03.08.2005 and the petitioner is to pay interest at the rate of 7% per annum on amount of Rs.2,09,138/- from 03.11.2005 till 18.03.2008, and the exercise shall be completed within three months from the date of communication of the order. Against the said order dated 04.03.2011, the petitioner filed R.P. No.131 of 2011, but the same was dismissed on 14.11.2012 for non-appearance. Subsequently, the petitioner filed M.P. No.504 of 2012 for restoration of R.P. No.131 of 2011, but the same was also dismissed vide order dated 28.11.2013 in Annexure-3. Hence this writ petition.
3. Mr. S.K. Das, learned Central Government Counsel appearing for the petitioner contended that there were no laches on the part of the petitioner and, as such, the petitioner is not liable to pay interest, as directed by the tribunal, vide order dated 04.03.2011, for the period from 03.11.2005 till 18.03.2008. Since there was delay on the part of the pension sanctioning authority in issuing pension papers and NDC, the DCRG could not be released in favour of opposite party no.1. Therefore, the petitioner is not liable to pay interest, as directed by the tribunal. If any liability is to be fixed, it should be fixed against the pension sanctioning authority.
4. Mr. S.N. Nayak, learned Additional Standing Counsel appearing for the State opposite parties contended that so far as direction of the tribunal with regard to payment of interest at the rate of 7% per annum for the period from 01.05.2004 to 03.08.2005 is concerned, the same has already been paid to opposite party no.1. Thereby, that part of the order dated 04.03.2011 passed by the tribunal has been complied with.
5. Mr.
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