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IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD
Surepalli Nanda, J.
Vadala Venkanna - Petitioner
Versus
TSRTC and others - Respondents
W.P. NO. 21613 of 2019
Decided On : 05-06-2023
Constitution of India, 1950 - Retired employee - Delayed payment of retirement benefits - Not paying leave encashment - Issue Writ or order declaring inaction on part of respondents in not paying leave encashment of 300 days - Held, Government employee on his retirement becomes immediately entitled to pension and other benefits in terms of Pension Rules, a duty is simultaneously cast on State to ensure disbursement of pension and other benefits to retirer in proper time - Court opines that if State commits any default in performance of its duty thereby denying to retired employee benefit of immediate use of his money, retired employee eventually will get a right to be compensated and only way to compensate a retired employee is to pay him interest for period of delay on amount as was due to him on date of his retirement - Petitioner's case for payment of Terminal Leave Encashment will be considered as per his turn - Writ petition allowed.
ORDER :
Heard the Learned Counsel for the Petitioner and the Learned standing counsel appearing for the Respondents/RTC.
2. This Writ Petition is filed to issue Writ or order more particularly one in the nature of Writ of Mandamus declaring the inaction on the part of the respondents in not paying the leave encashment of 300 days during the span of 20.03.1980 to 31.05.21018 and the petitioner retired from service on 31.5.2018 as Junior Assistant under the control of the 3rd Respondent and the petitioner is entitled for an amount of Rs.5,30,700/- along with accrued interest of 9% per annum for delayed payment of retirement benefits and consequently direct the respondents to pay the leave encashment for 300 days for an amount of Rs.5,30,700/- along with accrued interest of 9% per annum from time to time for delayed payment to the petitioner till the date of realization.
3. The Case of the Petitioner, in brief, is as follows:
a. The petitioner was initially appointed as Office boy on 20.3.1980 and subsequently worked as Record Tracer and later worked as Routine clerk wherein the petitioner was later promoted to the post of Junior Assistant and attained the superannuation on 31.5.2018.
b. The petitioner rendered service nearly 38 years and during this span, the petitioner was entitled for leave encashment of 300 days towards earned leaves. As on the date of retirement/superannuation, the same was not paid to the petitioner even after lapse of 16 months which amounts to Rs. 5,30,700/- along with accrued interest of 9% for delayed payments of retiral benefits.
c. Petitioner made a representation to the Regional Manager, TSRTC, Karimnagar on 08.09.2019 asking to pay the amount and the copies of it were sent to first, 3rd and 4th respondent through RPAD and the same were acknowledged by the respondents. The entitled amount of the petitioner is further strengthened by the decisions of the Supreme Court and Division Bench of Rajasthan High Court in 2015 (1) SLR 517(Raj) which was decided on 03.04.2014 in Civil Special Appeal (Writ) No. 1098 of 2013 for delayed payments of retiral benefits and as the petitioner had waited for more than 16 months, the petitioner is rightly claiming the delayed payment. Hence, the present Writ Petition is filed.
4. The case of the Respondents, in brief, is as follows:
a. Petitioner had attended service in the Respondent Corporation and retired from service on 31.5.2018 on attaining the age of superannuation and he was paid an amount of Rs. 19,72,187/- i.e. towards Gratuity, PF, CCS, RPS-2013 Bond amount, Settlement Salary & Difference of gratuity.
b. In the view of the financial crisis in the corporation, the terminal leave Encashment benefit is being paid in phased manner to the retired employees at present, the Terminal Leave Encashment has been paid to the employees who retired up to 31.03.2018 and the payment of the petitioner of Terminal Leave Encashment will be considered as per the petitioners turn. Hence, the petition may be closed in the interest of justice.
PERUSED THE RECORD :
5. The counter affidavit filed by the Respondents, in particular, paras 4 and 5 read as under :
| i) | Gratuity | Rs. 9,92,085.00 |
| ii) | PF | Rs. 2,91,627.00 |
| iii) | CCS | Rs. 4,99,014.00 |
| iv) | RPS-2013 Bond amount | Rs. 1,19,451.00 |
| v) | Settlement Salary | Rs. 52,734.00 |
| vi) | Difference of Gratuity | Rs. 17,276.00 |
|
| TOTAL | Rs.19,72,187.00 |
Retired employees are entitled to leave encashment as a matter of legal right, and undue delays in payment due to pending inquiries are not justified.
Retiral dues are property under Article 300A; unexplained delays in payment warrant interest at 6% per annum, with penal compensation for further delays.
Excess payments made to an employee due to erroneous calculations by the employer cannot be recovered from the employee's benefits unless specific legal conditions are met, protecting the employee's ....
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