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2022 Supreme(Ori) 372

IN THE HIGH COURT OF ORISSA AT CUTTACK
S.K. PANIGRAHI, J.
Kedara Chandra Samal – Appellant
Versus
State of Odisha & Ors. – Respondents
WPC (OAC) No.3987 of 2013
Decided on : 11-08-2022

Advocates:
Advocate Appeared:
For the Appellant : Mr. Satyajit Behera, Adv
For the Respondent: Mr. H.K. Panigrahi, ADV

Employees' rightful entitlement to salaries and pensions, and the need for equitable considerations in cases of deferred payments.

Headnote:

Gratuity - Delayed Payment - Odisha Civil Services (Pension) Rules, 1992 - Rule 49(5), Rule 66(2) - The court discussed the entitlement of the petitioner to the revised gratuity as per the finance department notification dated 2nd April 2011 and the interest on delayed payment of gratuity. The court highlighted the administrative lapses leading to delayed payment and the petitioner's entitlement to interest on the delayed payment. The court also referenced the Supreme Court's observations on the rightful entitlement of employees to salaries and pensions, and the need for equitable considerations in cases of deferred payments. The court directed the State to pay simple interest computed at the rate of 6% per annum on account of deferred salaries within a period of 30 days from the judgment date.

Fact of the Case:

The petitioner, a retired District Welfare Officer, sought direction for the payment of revised gratuity and interest on delayed payment as per Odisha Civil Services (Pension) Rules, 1992.

Finding of the Court:

The court found that the petitioner was entitled to the revised gratuity and interest on delayed payment due to administrative lapses leading to delayed payment. The court emphasized the rightful entitlement of employees to salaries and pensions and the need for equitable considerations in cases of deferred payments.

Issues: Entitlement to revised gratuity, interest on delayed payment, administrative lapses, and equitable considerations in deferred payments.

Ratio Decidendi: The court held that the petitioner, as a retired government servant, was entitled to the payment of salary as a matter of right, and the delayed payment of arrears of salary and other benefits due to administrative laches warranted the payment of interest. The court also emphasized the need for equitable considerations in cases of deferred payments, citing relevant precedents.

Final Decision: The court directed the State to pay simple interest computed at the rate of 6% per annum on account of deferred salaries within a period of 30 days from the judgment date. The Writ Petition was disposed of in favor of the petitioner.

JUDGMENT :

Dr. S.K. Panigrahi, J.

1. The petitioner has filed this Writ Petition seeking a direction to be issued to the Opp. parties to pay the revised gratuity to an amount of about Rs.3,46,995/-. He has additionally prayed for a direction to be issued to the Opp. parties to pay the interest at the rate of 8.5% for such intentional delayed payment of gratuity as per Rule 49 (5) of Odisha Civil Services (Pension) Rules, 1992 from the date of actual entitlement till actual payment.

2. Shorn of unnecessary details, the factual matrix of the case in brief is that the petitioner while working as District Welfare Officer at Kandhamal, retired from service w.e.f. 31.01.2007 on attaining age of superannuation. After retirement pension payment order was issued bearing No.367366. After 6 months of retirement, proceeding was initiated against the petitioner vide memorandum dated 25.06.2007 under Rule-15 of OCS (CC&A) Rules, 1962 read with Rule-7 of OCS (Pension), Rules, 1992. The petitioner was directed to file his written statement of defence within 30 days from the date of receipt of the memorandum of charges. Accordingly, the petitioner submitted his written statement of defence on 12.08.2008.

3. After submission of written statement, there was no progress in the Departmental Proceeding. While the matter stood, the Finance Department published a resolution dated 02.04.2011 regarding revision of pension/Family pension, Gratuity, Commutation of pension for State Government employees w.e.f 1st January 2006. The maximum limit of DCRG (Death Cum Retirement Gratuity) was enhanced from Rs. 2.5 lakhs to 7.5 lakhs w.e.f 01.01.2006 instead of 01.12.2008. It had also been clarified that the employee who have retired during the period from 01.01.2006 to 30.11.2008 are entitled to DCRG up to a maximum of Rs.7.5 lakhs on revision of pay scale w.e.f. 01.01.2006. The petitioner retired on 31.01.2007. So, he comes under the Notification of Finance Department and is entitled to get such enhanced gratuity amount.

4. In pursuance of notification under Annexure-3, the Director (ST/SC) wrote letter dated 28.04.2011 to AG Odisha for revision of pension and other pensionary benefits of petitioner bearing PPO No.367366. In the said letter Director(ST/SC) forwarded the following documents of petitioner for Revision of pension and other pensionary benefits. While forwarding the documents of petitioner for Revised pension, the DCRG amount was held up on the ground of Departmental Proceeding.

5. While the matter stood, the petitioner submitted a representation to the Opp. party No.2 on 12.09.2013 for release of Gratuity. However, on rejection of the same, the petitioner approached the Tribunal by filing OA No.3987/2013 with a prayer for release of Gratuity with interest. On 13.02.2014, the Tribunal was pleased to issue notice for filing of counter and during the pendency of case, the Opp. party No.1 passed the final order in the Departmental proceeding vide order dated 29.11.2014 imposing punishment of 5% of the pension of the delinquent officer Kedar Ch. Samal be withheld for a period of one year.

6. The enquiry report was received from PA ITDA, Baliguda vide letter dated 30.05.2008 and he has been requested to conduct further enquiry on some point vide letter dated 07.05.2009 for finalization of the proceeding and the enquiry report is waited. It was further stated in the counter that as per Rule-66(2) of O.C.S. (Pension) Rules, 1992 no gratuity shall be paid to the Government servant until conclusion of departmental proceedings & issue of final order thereon. Accordingly, petitioner representation was not considered. Being aggrieved of the same, the petitioner has filed this writ petition.

7. Learned Counsel for the petitioner has submitted that due to administrative lapses, the petitioner is deprived to get gratuity after retirement w.e.f. 31.01.2007 due to pendency of proceeding and it was finalized only on 29.11.2014. The petitioner is entitled for revised Gratui

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