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2024 Supreme(Online)(CAT) 17759
CENTRAL ADMINISTRATIVE TRIBUNAL
Ramesh Singh Thakur, M(J), Anjali Bhawra, M(A)
J.P.S. Pasricha – Appellant
Versus
Union of India – Respondent
O.A. No. 60/626/2021
For the Appellants/Petitioners: Mr. P. M. Kansal
For the Respondents: Mr. K. K. Thakur
Financial difficulties cannot justify withholding retiral benefits; such benefits are an employee's right upon retirement.
Headnote:(A) Administrative Tribunals Act, 1985 - Section 19 - Claim for retiral benefits - Applicant sought revision of pay and release of outstanding dues under 7th CPC since retirement in 2016 - Respondent cited financial constraints as a reason for delay - The court reiterated that the financial difficulty cannot justify delaying payment of retiral benefits, as these are an employee's right accruing from their service. (Paras 4, 11, 13)
(B) Right to Life - Constitution of India, Article 21 - Includes the right to livelihood - The court emphasized that denial of pensionary benefits based on financial constraints violates fundamental rights, necessitating timely disbursement. (Paras 11, 12, 13)
Facts of the case:
Applicant retired with no adverse actions pending against him but has not received dues as mandated by the 7th CPC, citing financial constraints from respondents. This impacts his livelihood post-retirement.
Findings of Court:
The reasoning of financial constraints for withholding benefits was deemed invalid; thus, the respondents must pay the dues with interest.
Issues: The primary issue raised was whether financial difficulties justify delayed payment of retirement dues.
Ratio Decidendi: The court ruled that financial difficulty cannot impede the disbursement of entitled benefits and emphasized the employer's obligation to ensure timely payment of full dues.
Result: The O.A. is allowed, directing the release of dues within six weeks.
| Table of Content |
|---|
| 1. financial constraints cannot justify withholding payment of retirement dues. (Para 1 , 4) |
| 2. due process and legal obligation for timely disbursement of retiral benefits. (Para 2 , 3 , 5 , 6 , 12) |
| 3. judicial reaffirmation of employee rights regarding pension and benefits. (Para 10 , 11 , 13) |
ORDER(Oral)
Per: ANJALI BHAWRA, MEMBER (A):
1. The present OA has been filed under Section 19 of the Administrative Tribunals Act , 1985 seeking the following relief:
“(i). That the record of the case be called; in the interest of justice.
(ii). That impugned office order dated 27.01.2021 (Annexure A-4) be quashed and set-aside, in the interest of justice, and the respondents be directed to release the entire outstanding dues including the benefits arising out of 7th Central Pay Commission by revising the pay and allowances as per 7th CPC w.e.f. 01.01.2016 and grant consequential arrears thereto including arrears of pay & allowances, and, also consequently release the arrears towards the revised pension, revised Gratuity, revised Leave Encashments, GIS etc. along with interest @ 12% p.a. from the due dates to till the actual payment is made, in the interest of justice.
(iv). That the applicant be held entitled to all consequential benefits/ reliefs from the due date, in the interest of justice.”
2. Brief facts of the case are that the applicant joined the Central Tool Room, Ludhiana (respondent No. 3) on 19.10.1983 and retired as Assistant Manager (Training) on 31.12.2016 on attaining the age of superannuation and without there being anything adverse against him. Pursuant to report of the 7th Central Pay Commission, the Government of India issued Resolution vide Notification dated 25.07.2016, inter-alia, stating that the Commission’s recommendations and Government’s decision thereon with regard to revised pay structure and the consequent pay fixation therein shall be effective from the 1st day of January, 2016. The arrears on this account were to be paid during the financial year 2016-2017. The applicant requested respondent No. 3 requesting for revision and refixation of pay w.e.f. 01.01.2016 and payment of outstanding leave encashment. The respondent No. 3 issued Sanction Order No. 1209- 10 Dated 16.02.2017 sanctioning but it was paid only in the year 2018. The applicant represented on 12.03.2019, 08.08.2019, 23.05.2020, 24.06.2020 requesting the respondents for releasing of arrears on the following counts:-
i). Pay fixation details in 7th CPC as on 01.01.2016;
ii). Pay details after granting the increment in July, 2016.
iii). Last salary details / Gross Total to be drawn as on 31.12.2016.
iv). Arrears thus calculated after granting 7th CPC.
v). Tentative date of giving the arrears.
3. On 25.12.2020 the applicant submitted Online Grievance on Centralized Public Grievance Redress And Monitoring System (CPGRAMS) (Annexure A-3) requesting for release of arrears arising out of implementation of 7th CPC w.e.f. 01.01.2016 to the date of his retirement on 31.12.2016. In response to above said Online Grievance of the applicant, the respondent No. 2 informed the applicant vide Impugned Order dated 27.01.2021 and stated that the respondent No. 3 has informed that the retiral dues of the employees have been paid to the maximum possible extent inspite of financial crunch/ paucity of funds. The remaining amount will be paid on the availability of funds. It is submitted that the applicant is entitled to the benefits of 7th Central Pay Commission which are applicable w.e.f. 01.01.2016, also include the fixation of pay on revised scales of pay w.e.f. 01.01.2016 to the date of retirement of applicant. Consequently the terminal benefits of applicant which include pensionary and retiral benefits are also required to be revised accordingly and as such the arrears thereto are due with the respondents. As on the due dates of claims and date of retirement of applicant, there was neither a departmental inquiry nor any criminal case pending against the ap
