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2024 Supreme(Online)(CAT) 14671

CENTRAL ADMINISTRATIVE TRIBUNAL
Shalini Misra, Administrative Member
B.V.Krishna Reddy – Appellant
Versus
Union of India – Respondent
O.A./233/2020



Advocates:
For the Appellants/Petitioners: P.Venkata Rama Sarma
For the Respondents: B.Siva Sankar

No interest on delayed financial benefits without statutory provisions; delays due to disciplinary proceedings not compensable.

Headnote:The applicant sought declaration of the impugned order rejecting interest at 24% on delayed BCR and MACP-III financial upgradation arrears as illegal, violative of Art.14 and 21. Essential facts include employment from 1979, retirement in 2018, delays due to disciplinary proceedings over fraud allegations, BCR granted w.e.f. 01.07.2005 but paid in 2011, MACP-III w.e.f. 01.04.2009 paid post-retirement. Court found delays attributable to pending disciplinary inquiry and poor prior gradings, not arbitrary action. Issues framed as entitlement to interest on delayed payments absent statutory provisions, relying on Art.14, 21. Ratio: Delays resulted from applicant's involvement in fraud inquiry and sub-judice matters; Supreme Court in S.K.Dua relegated claim to civil court, no direction for interest without rules. OA dismissed; applicant at liberty to approach Civil Court.

Table of Content
1. delays in bcr and macp-iii payments due to departmental inaction despite eligibility. (Para 2 , 3 , 4 , 5 , 6)
2. delays justified by fraud inquiry, poor gradings, and procedural resolutions. (Para 7 , 8 , 9 , 10 , 11 , 12)
3. claim for 24% interest relying on arts.14,21 and supreme court precedent. (Para 13 , 14 , 15 , 16 , 17 , 18)
4. no interest absent rules; applicant responsible for delays; oa dismissed. (Para 19 , 20 , 21 , 22 , 23)

ORDER

PER HON’BLE MRS. SHALINI MISRA, ADMINISTRATIVE MEMBER

The applicant has filed this OA seeking the following relief:

“To declare impugned order No.ST-1/MACP/Digs/2018, dated 9.12.2019 of the 4th Respondent in rejecting the request of the applicant for grant of interest @ 24% on the delayed payment of BCR and MACP-III Financial Upgradation arrears/benefits from the date of eligibility till the date of payment as illegal, arbitrary, bad in law, violative of Art. 14 and 21 of the Constitution of India and by setting aside the same, direct the Respondents to grant interest @24% on the delayed payment of BCR and MACP-III Financial Upgradation arrears/benefits from the date of eligibility till the date of payment with all consequential and attendant benefits an pass such other order or orders as this Tribunal may deem fit and proper in the circumstances of the case.”

2. The brief facts of the case, according to the applicant, are that he joined as Postal Assistant on 09.03.1979 and after working in several cadres, retired as Public Relation Inspector (Postal) at Proddutur HO on 31.12.2018 on reaching the age of superannuation.

3. The applicant has submitted that he underwent Open Heart Surgery on 01.01.2016 and had to take frequent check-ups at Hyderabad, and was advised not to take strenuous and stressful duties, and the same was informed to the respondents 4 and 5.

4. The applicant has further submitted that he was granted BCR financial upgradation scale w.e.f 01.07.2005, vide letter dated 28.10.2011 of the 5th respondent. On 28.10.2011, an amount of Rs.4,05,387/- (Rs.1,53,705/- vide voucher no.84/10-11, Rs.2,52,132/- vide voucher no.32/11-11) was credited to his account in September and October 2011 respectively. Though he attained the eligibility for the above said promotion on 01.07.2005 itself, the same was implemented in October 2011, after a lapse of more than 6 years, that too, after great persuasion, due to which he sustained huge financial loss, and for the delayed action of the respondents, he should not be penalized and put to irreparable loss and hardships, and he is entitled for interest on the delayed payment of the above benefit, which was paid long after more than 6 years though he was eligible for such benefit. He requested the respondents for grant of interest on the inordinate delay in paying the said benefit to him and no explanation or reasons have been assigned and in the absence of the same, he is entitled to claim interest on the said amount from the respondents for the period from 01.07.2005 to 30.11.2011 @ 24% p.a.

5. The applicant has further submitted that his request for grant of MACP-III financial upgradation scale, which has been pending for a long period, was finally implemented by issuing orders dated 10.05.2019 of the 5th respondent. Later, another revised orders were issued, vide letter dated 27.05.2019 of the 5th respondent in the Pay Band of Rs.9300- 34800/- GP Rs.4600/- giving the said benefit from 01.04.2009 and the said order has been implemented on 01.10.2019 by crediting an amount of Rs.4,18,343/- to his SB A/c No.1621115894, after his retirement on 31.12.2018. Though he was found eligible in the year 2009 itself for grant of MACP-III financial upgradation scale as on 09.03.2009 by following the procedure prescribed for grant of the said benefit, it was delayed by the authorities with a vested interest for more than 10 years. In the interregnum period, the applicant underwent Angioplasty on 31.12.2011 and Open Heart Surgery on 01.01.2016. For

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