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2024 Supreme(Online)(CAT) 15742

CENTRAL ADMINISTRATIVE TRIBUNAL
Suresh Kumar Batra, Judicial Member
Jitender Singh – Appellant
Versus
Union of India – Respondent
Original Application No.060/00521/2023|Original Application No.060/00523/2023|Original Application No.060/00528/2023



Advocates:
For the Appellants/Petitioners: Mr. Anirudh Gupta
For the Respondents: Mr. Sanjay Goyal, Sr. CGSC for R-1, Mr. Vinay Gupta for R-2 and 3, Mr. I.S. Sidhu for R-4

Retirees entitled to 8% interest on delayed pensionary benefits due to administrative lapses in processing.

Headnote:Pension rules mandate timely release of retiral benefits post-retirement. Retirees appointed as constables retired as Inspectors after long service; pension, GPF, gratuity, and leave encashment delayed by 1 year, 4 months, 11 months, and 1 month respectively due to procedural lapses. Court found respondents responsible for delays in certificates and processing, holding entitlement to interest as established precedent. Core issue: Whether retirees entitled to interest on delayed pensionary benefits absent intentional delay. Ratio: Delays attributable to authorities in issuing no-dues and last pay certificates justify interest; reasonable release time is two months post-retirement per Full Bench ruling; procedural obligations start six months prior. Original Applications allowed; respondents directed to pay 8% interest on delayed pension, GPF, and gratuity from 01.06.2022 till actual payment within two months.

Table of Content
1. similar oas consolidated; claims interest on delayed retiral benefits. (Para 1 , 2)
2. applicants cite precedents; respondents deny intentional delay. (Para 3 , 4 , 5 , 6)
3. court reviews delays in pension, gpf, gratuity payments. (Para 7 , 8)
4. precedents establish interest entitlement for procedural delays. (Para 9 , 10 , 11 , 12 , 13)
5. 8% interest ordered on delayed amounts from june 2022. (Para 14)

ORDER

Per: SURESH KUMAR BATRA MEMBER (J):-

1. Since the facts, relief claimed, grounds and law cited in support of the claim, in the three above captioned Original Applications are similar, therefore, with the consent of learned counsel for the parties, these are disposed of by a common order. For the sake of convenience, the facts are taken from O.A. No. 521/2023 titled Jitender Singh Vs. Union of India and Others. The relief claim in these OAs is as under:-

(i) To direct the respondents to pay interest @ 18% per annum on the delayed payment of amount of pension and retiral dues, in the interest of justice with all consequential benefits.

2. Briefly stated, the facts of the case are that applicant was initially appointed as Constable in the office of respondents on 29.04.1987. He has retired as Inspector (ORP) from the office of respondent no. 3 on 31.03.2022. After the retirement, the applicant was given PPO No. 708552300327 and the pension of the applicant was fixed at Rs. 48,334/-per month from the date of retirement. However, his retiral dues were not released at the time of his retirement. He submitted joint representation dated 07.12.2022 (Annexure A-3) seeking release of pension and pensionary benefits. Ultimately the pension, Gratuity and leave encashment have been released to the applicant. The grievance of the applicant is that his reitral benefits have been delayed by almost one year, therefore, he is entitled to be paid interest thereon.

3. In support of his claim, the applicant has placed reliance upon judgments in the case of Subrata Sen & Others Vs. Union of India etc. 2002 (1) SLJ 110, State of Kerala Vs. B.M. Padamanabha Nair & Others, 1985 SCC (L&S) 278, Deoki Nandan Prasad Vs. State of Bihar, 1971 (Supp) SCC 330 and the Hon‟ble Punjab and Haryana High Court Full Bench judgment in the case of A.S. Randhawa Vs. State of Punjab (P&H) 1997 (3) SCT 468.

4. The respondent no. 4 has filed short reply stating therein that the pension case of the applicant was received in the office of answering respondent from his parent department vide letter 17764 dated 25.04.2022, No. 46078 dated 18.07.2022. However the pension case complete in all respects was finally received in the office of answering respondent vide letter No. 98709 dated 16.12.2022 from the parent department of the applicant (Annexure R-4/1). Subsequently, the pension case was processed and authorized as per recommendation of the Pension Sanctioning Authority of the applicant. Authority for pension and other retiral benefits was issued vide letter No. 80012790 dated 02.02.2023 (Annexure R-4/2). GPF final payment case of the applicant was received in the office of the answering respondent vide letter No. 12612 dated 29.03.2022 (Annexure R-4/3) and authority for GPF final payment had been issued vide letter No. 744-46 dated 14.07.2022(Annexure R-4/4). It is submitted that there is no delay on the part of the office of the answering respondent, therefore, the claim of the applicant for interest on delayed payment against the answering respondent is not tenable.

5. The respondents no. 2 and 3 have filed short reply contesting the claim of the applicant for interest on delayed payment of retiral benefits. It has been stated therein that the pension case of the applicant was put forward on 07/03/2022 and the approval of W/SP/Hqrs was obtained on 10/03/2022 and thereafter, the Leave Encashment Payment was drawn vide Bill No. CP00000079 dated 07/04/2022 and G.I.S. vide Bill No. CP00000330 dated 02/05/2022 and the pension case of the applicant was sent to t

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