IN THE HIGH COURT OF ALLAHABAD
Ashok Bhushan, J.
JAGDISH MANI TRIPATHI - Appellant
Versus
STATE OF UTTAR PRADESH - Respondents
C. M. W. P. 7787 Of 1996
Decided On : 08/17/2001
Pension - Delayed Payment - Uttar Pradesh Nagar Palika Non-Centralised Services Retirement Benefits Regulations, 1984 - Rule 13 - Interest on Delayed Payment of Pension and Gratuity
Fact of the Case:
The petitioner, a retired Chungi moharrir, filed a writ petition seeking a writ of mandamus to grant dearness allowance on his pension at a rate equivalent to that being paid to retired employees of the U.P. Government. He also sought interest at the market rate on the delayed payment of pension and gratuity.
Finding of the Court:
The court found that both the Nagar Palika and State authorities were responsible for the delay in the payment of pension and gratuity. It held that the petitioner was entitled to payment of interest at the rate of 12% per annum on the delayed payment of pension and gratuity, with half of the interest to be paid by respondent No. 3 and half by the State authorities. The court directed the respondents to consider and decide the petitioner's representation for dearness allowance expeditiously.
Issues: The issues involved the delayed payment of pension and gratuity, entitlement to interest on delayed payment, and the petitioner's claim for dearness allowance equivalent to that being paid to U.P. Government employees.
Ratio Decidendi: The court held that employees are entitled to interest on delayed payment of pension and gratuity, citing the liability of the employer to pay interest as established by previous court decisions. It emphasized the responsibility of the pension sanctioning authority to ensure timely processing and payment of retirement benefits.
Final Decision: The writ petition was partly allowed, directing the respondents to make payment of simple interest at the rate of 12% per annum on the delayed payment of pension and gratuity to the petitioner. The court also instructed the petitioner to represent respondent No. 1 for consideration of his claim for dearness allowance.
( 1 ) HEARD Sri K. D. Mishra and Sri S. K. Mishra counsel appearing for the petitioner. Sri Sada nand Shukla appearing for respondent No. 3 and learned standing counsel appearing for respondent Nos. 1, 2 and 4.
( 2 ) COUNTER and rejoinder-affidavits have been exchanged and with the consent of the parties, the writ petition is being finally dispose of.
( 3 ) THIS writ petition has been filed by the petitioner praying for a writ of mandamus commanding the respondents to grant dearness allowance on his pension at a rate equivalent to the rate of dearness allowance being paid to retired employees of U. P. Government. It has further been prayed that mandamus be issued directing the respondents to pay interest at the market rate on the delayed payment of pension and gratuity.
( 4 ) THE facts of the case as set out in the writ petition are ; petitioner was appointed as Chungi moharrir (Octroi Clerk) in Nagar Palika Parishad, Deoria. He retired after attaining the age of superannuation on 31st July, 1987. In paragraph 2 of the writ petition, the petitioner has stated that he was confirmed Chungi Moharrir in the pay scale of Rs. 800-1,150. The petitioner was sanctioned pension by Division Commissioner, Gorakhpur, by order dated 14th September, 1993 and the gratuity was sanctioned by order of the same date. Petitioner states that he belonged to non-centralised service in the Municipal Board. Reference has been made to the Uttar Pradesh nagar Palika Non-Centralised Services, Retirement Benefit Regulations. 1984. Petitioner has stated in paragraph 18 of the writ petition that he submitted the pension papers well within time but the order for payment of pension and gratuity was passed on 14th September, 1993, i. e. , after lapse of six years. Petitioner has represented the matter to the Adhyaksha, Nagar Palika Parishad. Deoria, for payment of interest on the delayed payment of pension and gratuity. Petitioner further states that the State Government employees are receiving dearness allowance on their pension at the rate of 12%. Petitioner also states that he has been deprived of benefit of dearness allowance on pension.
( 5 ) A counter-affidavit has been filed by Nagar Palika Parishad. In the counter-affidavit. It has been stated that petitioner furnished the relevant form regarding payment of his pension on 31st december, 1987, which was forwarded to Director Local Funds on 5th January, 1988. The said papers were returned with certain objections by letter dated 19th March, 1988. It has been stated that President of the Nagar Palika sent the pension paper on 2nd February, 1989 and thereafter reminder was sent on 5th June, 1989. It is further stated that on 8. 2. 1990, the President of Nagar palika Parishad wrote to the Commissioner, Gorakhpur, for relaxation of age of the retired employee, i. e. , petitioner. It has been stated that after many correspondences age relaxation was granted to the petitioner by order dated 13th January, 1993, of Joint Secretary, Government of u. P. and thereafter the pension was sanctioned by the Commissioner and the same was paid to the petitioner. It has been stated that delay which has been occurred was due to the fact that petitioner during his total tenure of service appears to have not taken any step for relaxation of his age. It has also been stated that it was incumbent upon the petitioner to have taken steps for the aforesaid purpose at the time of appointment or at least during continuance of his service tenure. It has further been stated that petitioner himself is responsible for the delay in the start of payment of pension. It has been further stated that pension Rules applicable to Government servants belonging to service of U. P. Government do not apply in the matter of non-centralised servants of local bodies. No counter-affidavit has been filed by the State.
( 6 ) THE retirement benefits of the petitioner are governed by statutory regulations, namely, Uttar pradesh Nagar Palika
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