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1991 Supreme(P&H) 854

PUNJAB & HARYANA HIGH COURT
V.K.Bali and M.S.Liberhan JJ.
A.K.Kapoor
Versus
State Of Haryana
Civil Writ Petition No. 3473 of 1991,
Decided On : SEPTEMBER 13, 1991

Officers/officials responsible for delay in payment of pension and other post-retirement benefits are liable to pay interest and costs.

Headnote:

PENSION - DELAYED PAYMENT - INTEREST - ENTITLEMENT - OFFICERS/OFFICIALS RESPONSIBLE FOR DELAY - LIABILITY TO PAY INTEREST AND COSTS.

Fact of the Case:

The petitioners, retired government employees, filed writ petitions seeking interest on delayed payments of their pension and other post-retirement benefits. The State opposed the petitions, arguing that the claim for interest could not be agitated in writ jurisdiction and that the delay was insignificant and caused by procedural reasons.

Finding of the Court:

The Court held that the petitioners were entitled to interest on delayed payments of their pension and other post-retirement benefits. The Court found that the delay in payment was caused by the proverbial lethargy and callousness of the respondents and that the State could not be held liable for the delay. The Court also held that the officers/officials responsible for the delay should be held liable to pay interest and costs.

Issues: 1. Whether the petitioners were entitled to interest on delayed payments of their pension and other post-retirement benefits. 2. Whether the State could be held liable for the delay in payment. 3. Whether the officers/officials responsible for the delay should be held liable to pay interest and costs.

Ratio Decidendi: 1. The Court held that the petitioners were entitled to interest on delayed payments of their pension and other post-retirement benefits because: - The pension and gratuity were no longer any bounty to be distributed by the Government to its employees on their retirement but had become valuable rights and property in their hands. - Any culpable delay in settlement and disbursement thereof must be visited with the penalty of payment of interest at the current market rate till actual payment. 2. The Court held that the State could not be held liable for the delay in payment because: - The delay was caused by the proverbial lethargy and callousness of the officers/officials responsible for processing the pension and gratuity payments. - The State had already framed rules to work out pension cases of its employees and had issued instructions to ensure that pension and gratuity payments were made promptly. 3. The Court held that the officers/officials responsible for the delay should be held liable to pay interest and costs because: - They had failed to comply with the statutory provisions of the Rules and the clear mandate given by the Apex Court. - Their casual attitude had resulted in the petitioners being deprived of their rightful dues and had caused them undue hardship.

Final Decision: The Court allowed the petitions and directed the State to pay the petitioners interest at the rate of 12% on delayed payments of their pension and other post-retirement benefits. The Court also directed the State to pay the petitioners costs of Rs. 1,000/- each. The Court further directed the State to issue instructions or frame rules to fix the liability of interest on erring officers/officials.

Judgment

V.K.Bali, J.

1. The most over-powering ambition of youngsters groping around for a place in the world is to join the coveted ranks of the employed. They live their lives dreaming about future and what it would hold for them and do all that can to shape their vision into reality. The wish of joining service and in particular Government service turns into a concrete reality for too few a person. However, when this dream does come true, there is jubilation. Parents heave a sigh of relief. Families get bread winners. Years of education seem justified. However, while the incumbent looks towards the stars and aims towards the sky thinking about the vast stretch of life lying ahead, in the Court, practical and impersonal columns of law and service rules, his and has already been decided, the date of his superannuation stamped against his name end his pension is fixed. As and when dreaded hour of superannuation draws closer, the employee spends the last leg of his career looking forward to a life of rest and resign himself to earning a third of his salary for the test of his living years. Little does he realise that the end of a chapter is the beginning of a tale of woes. The pension and post retiral benefits on which rests the confidence and dignity with which one expects to live ones retired life begin to prove elusive. The entire set of officials, departments and clerks begin to shuffle acros the papers with regard to pension of a person from one table to another. A few tantalising glimpses and one has to repeatedly and without success go through an entire maze of procedures and complaints. Every morning brings a ray of hope and every evening it is dashed to the ground. Retirement becomes a physical and mental torture. It becomes difficult to believe that even though the day a person joins service, his retirement has already been worked out to the minutest of details yet it is only when the day ultimately dawns that some movement is noticed in the corridors of officials who have been assigned the duty to work out pension and not earlier. Although the pension, gratuity and other post retiral benefits that a person is entitled to are not only known to the person concerned but also on account of crystal clear Rules framed by the Government even to those who have to work out the same yet it is strange that no efforts are made till such time the person actually retires. The channel to provide pension and other benefits works at the pace of a snail-the giving hand becomes practically paralysed. A person who has to live after retirement only on the truncated source of income that he is to get from the Government for obvious reasons gets insecure, panicky and shocked at the apathy meted out to him by the very organisation of which he was a part till recently.

2. Is it not an insult to human dignity that a person is virtually made to go from door to door and beg for what is virtually his and should naturally come to him?

3. Is it not that the very system which takes decision of pension and retirement by not adhering to its own decision renders the system itself to a mockery. If so, is it not that those who render the whole system to ridicule deserve some harsh treatment?

4. In the context of aforesaid two questions, we have to decide the present bunch of Writ Petitions in which the proverbial delay of the Government in giving pension to a retired person has been criticised.

5. The two questions framed above need an answer as demanded by the petitioners. The third question that has not been canvassed but which too is agitating our mind is as to whether it is the Government which should be made to pay the penalty by way of interest or costs or both or the blame should be foisted upon the officers/ officials who, on account of raising insignificant and frivolous objections get the matter delayed beyond measures. Obviously, the third question posed by us to ourselves would be gone into only if the first two questions are determined in f









































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