Back
2025 Supreme(Online)(CAT) 3493
CENTRAL ADMINISTRATIVE TRIBUNAL
MR. JUSTICE OM PRAKASH, J
Prabhawati – Appellant
Versus
Bharat Sanchar Nigam Limited – Respondent
O.A./646/2021
Sri Deepak Maurya, Sri D.S. Shukla
Interest on delayed payments of family pension and ex-gratia compensation is permissible, emphasizing timely disbursement to beneficiaries.
Headnote:(A) Central Government Pension Rules - Rule 54 - Ex-gratia compensation - Applicants sought interest on delayed payment of ex-gratia amount and family pension after the death of the employee in a road accident - The claim was rejected by the authorities citing lack of provision for interest on ex-gratia payments - The court found that the applicants were entitled to interest on delayed payments, directing the respondents to calculate interest at 6% per annum from specified dates. (Paras 2, 8, 12, 14)
(B) Interest on Delayed Payments - The court established that interest on delayed payment of family pension and ex-gratia compensation is permissible under existing legal principles, emphasizing the need for timely disbursement of benefits to beneficiaries. (Paras 10, 12)
Facts of the case:
The husband of the first applicant died in a road accident in 2009. The family pension was sanctioned, but the ex-gratia payment was delayed until 2017. The applicants claimed interest on these delayed payments.
Findings of Court:
The court ruled that the applicants are entitled to interest on the delayed payments of family pension and ex-gratia compensation, specifying the rates and periods for calculation.
Issues: The main issues were whether the applicants were entitled to interest on delayed payments and the applicable rates for such interest.
Ratio Decidendi: The court held that interest on delayed payments is justified and must be calculated based on the time elapsed since the due date of payment, reaffirming the principle that beneficiaries should not suffer due to administrative delays.
Result: The Original Application is allowed.
ORDER
The applicants have filed the instant Original Application seeking the following relief(s):-
“(a) to quash the impugned orders dated 5.2.2018 passed by respondent no.6 as well as the order dated 29.4.2021 passed by the respondent no.7 by means of which the claim of the applicants relating to payment of interest of Ex-gratia amount as well as the interest on pension/family pension has been rejected in an arbitrary and illegal manner against the provisions contained under the Central Government Pension Rules .
(b) to direct the respondent authorities to sanction the payment of penal interest @ 18% per annum on delayed payment of ex-gratia amount lump sum compensation and difference of amount of ordinary family pension, Extra Ordinary family pension to the applicants which were paid in the year 2017 instead of in the year 2009 by the respondent authorities.
(c) to issue an order or direction may deem fit and proper in the facts and circumstances of the case.
(d) to award the costs to the applicants.”
2. Briefly stated the facts of the case are that the husband of applicant no.1 and father of applicant no.2 namely Late K.D. Maurya, who was working with the respondents as Sub Divisional Engineer (OFC), Jaunpur under respondent no.6 died on 9.5.2009 in a road accident. On the sad demise of husband of applicant no.1, she was sanctioned family pension under Rule 54 of CCS (Pension) Rules. According to the applicant, certain guidelines have been provided in EOP Rules of 1939 for providing extra-ordinary pension and the same was considered by the DoPT while issuing the O.M. dated 3.2.2000. Pursuant to the aforementioned O.M., the applicant preferred an application on 23.3.2010 with a prayer for ex-gratia payment. On this, the matter was remitted back to the authority concerned vide letter dated 9.2.2011 with a direction to examine the issue.
2.1 Ultimately, after the long battle, the ex-gratia payment was made to the applicant vide order dated 29.3.2017 and the arrears thereof were credited in the account of applicant no.1 on 3.7.2017. The applicants claimed that since they have been paid family pension after a period of one year and that the amount relating to ex-gratia has been made to them after a period of more than nine years and as such they are entitled to get the amount of interest on the delayed payment of family pension for one year and on ex-gratia amount, which has been paid to them after a period of nine years. Being aggrieved, the applicants preferred series of representations and ultimately the claim of the applicants has been rejected by the respondents vide order dated 5.2.2018, which has been reiterated in the order dated 29.4.2021 in reference to letter dated 22.2.2021 as submitted by the applicant no.1. Hence, this O.A.
3. On notice, the respondents have contested the claim of the applicants by filing a detailed Counter Affidavit wherein they have stated that K.D. Maurya, the then SDE (OFC), Jaunpur died in a road accident on 9.5.2009 and consequently the family pension under Rule 54 of CCS (Pension) Rules, 1972 was paid to the applicant no.1 w.e.f. 10.5.2009 by issuing PPO in her favour on 11.1.2010.
3.1 The respondents have also considered the claim of the applicants for grant of extra ordinary pension and the same was granted to applicant no.1 vide PPO issued by the office of CCA, Delhi on 16.5.2017 and thereafter the arrears of family pension w.e.f. 10.5.2009 based on the revised family pension under CCS (Extra Ordinary Pension) Rules, 1972 after deducting the payment already made under Family pension under Rule 54 of CCS (Pension) Rules, 1972 has been made. The applicant was in receipt of family pension w.e.f. 10.5.2009 onwards. The applicant no.1 was also allowed family pension under CCS (Extra Ordinary Pension) Rules, 1939 after following the due process. The respondents have also averred that the request of the applicant no.1 for grant of ex-gratia lump sum compensation was also considered by the competent auth
