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IN THE HIGH COURT OF UTTARAKHAND AT NAINITAL
Vipin Sanghi, Ramesh Chandra Khulbe, JJ.
Sukhbir Singh - Appellant
Versus
State of Uttarakhand & Anr. - Respondents
Writ Petition (S/B) No. 662 of 2022
Decided On : 06-12-2022
Non-release of Retiral Dues - Court directs respondent to release gratuity, leave encashment, and arrears of 7th Pay Commission to petitioner
Fact of the Case:
The petitioner's retiral dues, including gratuity, leave encashment, and arrears of 7th Pay Commission, were sanctioned but not paid by the respondent due to paucity of funds.
Finding of the Court:
The court found that the respondent's inability to make payment due to paucity of funds cannot be cited as a reason to deny the retired employee his dues. The court directed the respondent to release the gratuity amount within one month, leave encashment within five months, and arrears of 7th Pay Commission within six months.
Issues: Non-release of retiral dues, paucity of funds as a reason for non-payment
Ratio Decidendi: The court held that the respondent's financial constraints cannot justify the non-release of the petitioner's retiral dues.
Final Decision: The court disposed of the petition with a direction to the respondent to release the specified retiral dues to the petitioner within the specified timeframes.
JUDGMENT
Vipin Sanghi, CJ. - Issue notice. Notice is accepted on behalf of the respondents by the learned counsels.
2. The limited grievance of the petitioner is with regard to non-release of the petitioner's retiral dues which are claimed to be as follows:-
| A. | Gratuity | Rs.20,00,000/- (approx) (sanctioned but not paid) |
| B. | Leave Encashment (300 days) | Rs.19,83,340/- (approx) (sanctioned but not paid) |
| C. | Remaining dues of third A.C.P. | Rs.1,11,285/- (approx) (sanctioned but not paid) |
| D. | Dearness Allowances | Rs.18,168/- (approx) (sanctioned but not paid) |
| E | Arrears of 7th Pay Commission | Rs.1,98,222/- (approx) (sanctioned but not paid) |
|
| Total Amount | Rs.43,11,015 (approx) |
3. Mr. Bhupendra Singh Bisht, learned counsel for respondent No. 2 states that due to paucity of fund, the respondent has not been able to make payment to him. That cannot be cited as a reason to deny the retired employee his dues.
4. We, therefore, dispose of the present petition with direction to the respondent to release the gratuity amount of the petitioner within one month, leave encashment within five months and arrears of 7th pay Commission within six months.
Paucity of funds cannot be cited as a reason to deny the payment of retiral dues to a retired employee.
Paucity of funds cannot be used as a reason to deny a retired employee's dues.
Enforcement of payment of retiral dues to a retired employee in accordance with specified timeframes.
The court directed the respondents to pay the arrears of pay on implementation of the 7th Pay Commission Report, enhanced payment towards Leave Encashment, and enhanced payment towards Provident Fund....
Pension and gratuity are rights of employees, mandating timely payment, with penalties for unjustified delays in disbursement.
The authority of a Board of Directors in determining employee benefits is upheld, and financial constraints can justify delays in payment of dues.
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