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2026 Supreme(All) 362

IN THE HIGH COURT OF JUDICATURE AT ALLAHABAD LUCKNOW BENCH
KARUNESH SINGH PAWAR, J.
Bankey Bihari Lal – Appellant
Versus
State of U.P. and Others – Respondents
Writ (A) No. 5467 of 2023
Decided On : 24-03-2026

Advocates Appeared:
For the Appellants : Vijay Kumar Srivastava, Tanmay Singh
For the Respondent: Dipak Seth

Pension and gratuity are rights of employees, mandating timely payment, with penalties for unjustified delays in disbursement.

Headnote:(A) U.P. Pension Cases (Submission, Disposal and Avoidance of Delay) Rules, 1995 - Delay in payment of retiral dues - Court held there was no justification for withholding petitioner's pension, gratuity, and leave encashment following acquittal in a criminal case. Respondents directed to pay regular pension from 01.03.1998. Interest on delayed payment at 7% per annum also awarded. (Paras 15, 18, 20)

(B) Judicial Review - Principles laid down regarding pension as a right and not a bounty, with penalties for delay in disbursement. (Paras 17, 19)

Facts of the case:
The petitioner retired on 28.02.1998, with no pending judicial or departmental proceedings. Following an FIR against him post-retirement, his dues were withheld. He was acquitted in 2025, and the court noted the need for timely payment of dues.

Findings of Court:
The court found that all outstanding payments to the petitioner, including pension, were unjustifiably delayed, and the relevant rules had not been adhered to.

Issues: The issues involved the withholding of retiral dues based on an unfounded criminal case, and the proper interest rate on delayed payments.

Ratio Decidendi: The court emphasized that pension and gratuity constitute rights that must be paid timely, independent of criminal proceedings where no fault of the employee is shown (Paras 17-18).

Result: Writ petition allowed; regular pension to be paid w.e.f. 01.03.1998, with interest on delayed payments.

Table of Content
1. prayer for pension and interest on dues. (Para 2 , 3 , 4)
2. factual background on payment of dues. (Para 5 , 6 , 7 , 8)
3. arguments regarding entitlement and precedent cases. (Para 9 , 10)
4. court's views on withholding dues. (Para 11 , 12 , 13 , 14)
5. final ruling on petitioner's claims. (Para 15)
6. entitlement to interest and directives on payment. (Para 16 , 17 , 18 , 19 , 20)

JUDGMENT :

KARUNESH SINGH PAWAR, J.

1. Heard learned counsel for the petitioner and learned Standing Counsel appearing for the State-respondents.

2. By means of the present petition, the petitioner has prayed for a direction in the nature of mandamus commanding respondent Nos. 2 and 3 to sanction retiral dues such as pension, leave encashment and gratuity, etc.

3. Petitioner has also prayed for issuance of a writ of mandamus commanding respondent Nos. 2 and 3 to pay interest on the amount of post-retiral dues @ 12% per annum w.e.f. 01.03.1998 till the date of actual payment.

4. Further, it has been prayed that respondent No. 4 be directed to pay 10% of the General Provident Fund to the petitioner along with interest till the date of actual payment.

5. A Co-ordinate Bench of this Court, vide order dated 28.07.2023, directed the respondents to pay 10% of the remaining GPF to the petitioner upon authorization by respondent No. 4. Payment of leave encashment was also directed to be made to the petitioner within a period of three months.

6. Learned counsel for the petitioner has submitted that, in compliance of the aforesaid order, entire leave encashment has been paid to the petitioner vide order dated 06.08.2023 to the tune of Rs. 15,558/-. The gratuity amount has also been paid to the petitioner vide order dated 02.09.2023, and provisional pension had earlier been paid to the petitioner vide order dated 15.01.2009. The entire provident fund amount also stands paid to the petitioner with interest. Therefore, in the changed circumstances, the petitioner has now confined his prayer to grant of regular pension along with interest w.e.f. 01.03.1998. He also prays for interest on the delayed payment of leave encashment and gratuity.

7. Brief facts of the case are that the petitioner was initially appointed as Junior Clerk in the office of respondent No. 3 on 17.06.1964. After providing satisfactory service and on attaining the age of superannuation, he retired on 28.02.1998. After his retirement, on 03.03.1998, the Additional Commissioner, Lucknow Division, Lucknow lodged an FIR against the petitioner and one Kailash Narain Mishra, being Case Crime No. 74 of 1998 under Section 409 IPC at Police Station Wazir Ganj, Lucknow, alleging that certain documents of Lucknow Mandaliya Vikas Nigam were missing. It is submitted that at the time of retirement of the petitioner, no departmental proceedings or judicial proceedings were pending against him, nor were the same contemplated.

8. It is further submitted that only on account of Case Crime No. 74 of 1998, the respondents arbitrarily withheld the post-retiral dues of the petitioner, and only after interim order passed by this Court the same have been released. So far as the aforesaid criminal case is concerned, the petitioner has been acquitted in Criminal Case No. 7102205 of 2006 ( State of U.P. vs. Banke Bihari Lal ) vide judgment and order dated 12.12.2025, arising out of Case Crime No. 74 of 1998, a copy of the same has been brought on record along with the supplementary affidavit dated 06.01.2026 filed by the petitioner. Against the acquittal order, no appeal has been filed by the State.

9. The petitioner submits that he is entitled to payment of regular pension as well as interest on the delayed payment of leave encashment, gratuity and pension. In support of his contention, reliance has been placed upon the judgments of the Hon'ble Supreme Court inD.D. Tewari (Dead) through Legal Representatives vs. Uttar Haryana Bijli Vitran Nigam Ltd. and Others, (2014) 8 SCC 894 ; State of U.P. and Others vs. Dhire

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