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2024 Supreme(Online)(CAT) 4912

CENTRAL ADMINISTRATIVE TRIBUNAL
Pratima K. Gupta, Judicial Member
H.N. Navrang – Appellant
Versus
Union of India – Respondent
O.A. No.1499/2019



Advocates:
For the Appellants/Petitioners: Shri Padma Kumar S.
For the Respondents: Mr. Gyanendra Singh, Ms. Vertika Sharma

Gratuity cannot be withheld for penal rent without PP Act proceedings or CCS Pension Rules compliance; interest payable on delayed retirement dues at GPF rates; respondents may recover dues post due process.

Headnote:(A) CCS (Pension) Rules, 1972 - Rules 9, 57, 68, 72 - Public Premises (Eviction of Unauthorized Occupants) Act, 1972 - Sections 7, 10, 15 - Retirement benefits - Gratuity withheld to adjust penal rent for unauthorized occupation of government accommodation - No proceedings initiated under PP Act - Adjustment without following due procedure under pension rules violates principles of natural justice - Overstaying in accommodation does not justify withholding gratuity without proper inquiry; respondents at liberty to recover penal rent after due process - Interest payable on delayed gratuity and salary at GPF rates from due dates till payment. (Paras 21.1, 22)

(B) Leave encashment - Payable as per service record (188 days) - Claim for additional days not established contrary to records. (Para 21.2)

(C) Delayed salary payments - Justification of delay due to unauthorized absences and service at multiple locations not acceptable; salary is compensation for work done, interest payable on belated payments. (Para 21.3)

Facts of the case:
Retired government employee challenged order withholding part gratuity (Rs.6,83,211/-) for penal rent due to unauthorized occupation of government accommodation post-retirement, sought additional leave encashment, interest on delayed salary and retirement dues. Prior proceedings directed reasoned order, leading to impugned rejection.

Findings of Court:
Withheld gratuity to be released with interest; interest on delayed salary; leave encashment claim rejected; recovery of penal rent permissible post due procedure.

Issues: Validity of gratuity withholding without PP Act proceedings or pension rule compliance; entitlement to interest on delayed payments; quantum of leave encashment.

Ratio Decidendi: Absence of formal proceedings under PP Act distinguishes case from precedents allowing adjustment; procedure under CCS Pension Rules mandatory for recoveries; interest on delayed dues enforceable even absent specific rules, via constitutional principles; salary delays unjustifiable.

Result: OA allowed in part - directions for release of withheld gratuity with interest, interest on salary, compliance within eight weeks.

Table of Content
1. prior litigation and retirement dues claims overview (Para 1 , 2 , 3)
2. entitlement to delayed gratuity, salary, leave encashment interest (Para 4 , 5 , 6 , 17 , 18 , 19)
3. penal rent adjustment invalid without pp act proceedings (Para 9 , 10 , 11)
4. leave encashment correctly paid per service records (Para 12 , 13 , 14 , 15)
5. delayed salary payment unjustified despite absences (Para 16)
6. direct release of withheld gratuity and salary interest (Para 20 , 22 , 23)

ORDER 

This is the second round of litigation pursued by the applicant.

In the earlier round, the applicant had filed OA No. 4420/2017 and vide its Order/Judgment dated 14.12.2017, this Tribunal had disposed of the same directing the respondents to consider the issues raised by the applicant in his representation and Legal Notice and to pass a detailed reasoned and speaking order thereon within a period of six weeks from the date of receipt of a copy of the order. In compliance of the said order, respondents passed an order dated 15.02.2018, rejecting the claim of the applicant. Aggrieved by the same the applicant has filed the instant OA, seeking the following relief:-

“(i) Quash and set aside the impugned order dated 15.02.2018 which is marked and annexed as ANNEXURE A-1.

(ii) Direct the respondents to release complete outstanding amounts with interest thereon as per details given below:

(a) Release of withheld gratuity and interest on withhold gratuity and already released.

(b) Release of salary for the following period:-

(i) 01.12.2005 - 2.5.2006

(ii) 1.11.2008 30.11.2005

(iii) 1.11.2009 29.3.2010

(c) Interest on the salary for the above period and interest on the salary for the month of May, 2013 as it was paid late on 22.11.2017.

(d) Leave encashment for 300 days with Training Allowance and Sumptuary allowance with interest.

(iii) Grant any other relief which this Hon'ble Tribunal may allow under the facts and circumstances of the case.”

2. Learned counsel for the applicant while narrating the facts of the present OA submitted that the applicant retired as Additional Director General, Doordarshan on superannuation on 31.5.2013, after having served for about 36 years in service. He had submitted all the necessary documents for release of the retirement dues before the respondents. Learned counsel for the applicant drew attention to the impugned order dated 15.02.2018. Para 6 of the same, makes it clear that the retrial dues have been though released , however there is a substantial delay in release. Therefore, the respondents are liable to pay the interest from the dates they became payable to the dates they were actually paid. Relevant portion of order dated 15.02.2018 reads as under:-

“Whereas, as per PAO IRLA’s letter no. PAO/IRLA/I&B/PBSU-I/9466/2017-18 dated 19.01.2018 the following pensioner benefits/payments have been released to Shri H.N. Navrang:-

SinoParticularsAmounts PaidDate
1.Leave EncashmentRs. 6,73,980/-08.12.2017
2.CGEGISRs. 1,31,336/-27.10.2015
3.GratuityRs. 3,16,789/-27.11.2014
4.Commutation of PensionRs. 11,75,020/-04.09.2013
5.Salary May 2013Rs. 1,28,521/-22.11.2017
6.Salary from 01.12.2005 to 02.05.2006Arrears paid along with salary of January 2013.
7.Salary from 01.11.2008 to 30.11.2008
Salary from 01.11.2009 to 29.03.2010

3. To clarify, an amount of Rs.6,73,980/- towards Leave Encashment was paid after a delay of more than 4½ years. He submitted that as per the Govt. of India OM dated 05.09.2008, Training Allowance is also to be included in the Leave Encashment. He contended that the applicant has been paid Leave Encashment of 188 days as against his entitlement of 300 days, as reflected in the office order dated 31.05.2013, which clearly establishes the claim of 300 days. He stated that the applicant is not only entitled to the remaining dues in terms of the leave encashment but also to interest which has accrued on the same. To support his argument, he drew attention to a decision of the Hon’ble High Court of Delhi in W.P.(C) No. 9394/2017 –

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