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2025 Supreme(Ori) 1100

IN THE HIGH COURT OF ORISSA AT CUTTACK
A.K.MOHAPATRA, J.
Hrudananda Mall & Anr. – Petitioners
Versus
State of Odisha and Ors. - Opposite Parties
W.P.(C) No.18596 of 2024
Decided On : 07-03-2025

Advocates Appeared:
For the Petitioners:Mr. Akshyangshu Sekhar Nandy, Advocate
For the Opposite Parties : Mrs. Sasmita Nayak, A.S.C.

Delay in disbursing pension and gratuity obligates the government to pay interest as mandated by OCS Pension Rules, reinforcing the rights of employees to timely benefits.

Headnote:(A) OCS (Pension) Rules, 1992 - Delay in payment of family pension and gratuity - Petitioners sought interest due to a five-and-a-half-year delay in payment, invoking OCS Pension Rules - Court finds the Petitioner's claims valid under rules governing timely payment, holding authorities responsible for the delay and citing obligations of the sanctioning authority. (Paras 11-12, 14-16)

(B) Principles of Public Duty - Government's responsibility in timely disbursement of dues - Supreme Court emphasized that pensions are rights, not bounties, and culpable delays necessitate interest payments to avoid miscarriage of justice. (Paras 14-15)

Facts of the case:
The deceased employee worked in a government hospital and died in 2017; the family was not paid pension and gratuity until May 2022 after multiple representations and reminders.

Findings of Court:
The Court quashed the order rejecting interest and directed payment with applicable interest rates as per circulars.

Issues: Whether the government is liable for interest due to delayed payments to the Petitioner.

Ratio Decidendi: The delay was deemed solely attributable to the government's administrative lapses, with legal precedent affirming the employee's entitlement to timely pension and gratuity payments and consequent interest.

Result: Order rejecting interest quashed; state required to pay interest on delayed dues.

Table of Content
1. delayed payment of family pension and gratuity. (Para 1 , 2 , 4 , 5 , 6)
2. state's argument against liability for delay. (Para 7 , 8)
3. court examines responsibility for delay. (Para 10 , 11 , 12 , 13)
4. interest entitlement for delayed payment. (Para 14 , 15)
5. court's directive on interest payment. (Para 16 , 17)

JUDGMENT :

A.K. Mohapatra, J.

1. The present Writ Petition has been filed by the Petitioners with a limited prayer for a direction to the Opposite Parties to pay interest at the rate of 18% per annum for the delayed period of payment of family pension as well as gratuity as the authorities have admittedly paid the same after a lapse of five and half years from the date of death of the Government employee till receipt of the family pension and gratuity amount on 10.05.2022 in terms of the provisions contained under OCS (Pension) Rules, 1992. He also prayed for quashing of the order dated 30.12.2023 passed by the Opposite Party No.1 under Annexure-13 to the Writ Petition.

2. The factual background leading to filing of the present Writ Petition is as follows:

The wife of the present Petitioner No.1 late Dr.Bijaya Bhanja, while working as Doctor under the Government of Odisha engaged in ESI Hospital, died on 22.01.2017. Initially she joined as Insurance Medical Officer on 16.04.1981 and she was supposed to retire on 28.02.2017. After the death of the wife of Petitioner No.1 the Petitioner No.1 submitted a representation before the authority on 12.05.2017 with a request to sanction commuted leave and other pensionary benefits. Thereafter, again on 06.06.2017 he submitted another representation before the authority claiming provisional gratuity, provisional family pension, unutilised leave salary and other terminal dues as is due and admissible to the late wife of petitioner No.1. The pleadings further reveals that the authorities sanctioned the provisional pension on 06.11.2017. Thereafter, on 26.11.2019 unutilised leave salary was sanction and released.

4. Since the entire service dues and financial benefits were not paid to the petitioner No.1 which the wife of Petitioner No.1 is entitled to, the Petitioner again filed another representation on 12.07.2020 claiming therein family pension and gratuity. Since no action was taken, the Petitioners submitted several reminders to the authorities. Finally on 24.02.2022, the Opposite Parties sanctioned family pension and gratuity and pension papers were sent to the District Treasury Officer, Cuttack. On 10.05.2022 the gratuity and family pension amount was received by Petitioner No.1 after a lapse of five and half years. Since there was admittedly a delay of five and half years, the Petitioner No.1 ventilated his grievance before the Opposite Parties for payment of interest for the delayed period. Since no action was taken, the Petitioners were compelled to approach this Court by filing a Writ Petition bearing W.P.(C) No. 26265 of 2023.

5. This Court disposed of the said writ Petition vide order dated 04.09.2023 thereby quashing the order dated 19.04.2023 under Annexure-12 to the previous Writ Petition with a further direction to Opposite Party No.1 to reconsider the claim of the Petitioners keeping in view the circular of the State Government as well as the judgment referred to by this Court in the order passed in previous Writ Petition. While disposing of the previous Writ Petition, this Court has categorically held that this Court is prima facie satisfied that there is a delay of five and half years, in payment of the dues as is due and admissible to late wife of the Petitioner No.1. This Court further directed the Opposite Parties to consider the claim of the Petitioners keeping in view the law laid down by this Court in OJC No.6886 of 1999 as well as the judgment of the Hon’ble Supreme Court in the case of D.D.Tewari (dead) through Legal Representatives vs. Uttar Haryana Bijli Vitran Nigam Limited & Ors. reported in (2014) 8 SCC 894 .

6. After disposal of the a

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