No automatic interest on delayed retiral benefits if delay due to justified pay corrections, not deliberate withholding.

ORDER

Per: - Rajinder Singh Dogra, Judicial Member

1. The applicants have filed the present Original Application under Section 19 of the Administrative Tribunals Act, 1985 seeking the following reliefs: -

“In view of the facts mentioned in Para 4 above, the applicants pray for the following reliefs:

i/ Set Aside/Quash the order No. PHERM/2229-31 dated 30.12.2024 passed by the respondents.

ii/ directions to the respondents to declared the applicants entitled to cash payment @18% interest p.a legitimately due to them on release of retiral benefits including the gratuity and pension with effect from the date of retirement till its realization as per Regulation 242 of Civil Service Regulations, 1956 Vol-1

iii/ any other relief which this Hon'ble tribunal may deems fit or proper in the facts and circumstances of the case.”

2. The facts of the case as averred by the applicants in their pleadings, are as follows: -

a) The applicants, namely Sham Lal, Dewan Chand and Parshotam Kumar, have approached this Tribunal by filing the present Original Application under Section 19 of the Administrative Tribunals Act, 1985, assailing Order No. PHERM/2229-31 dated 30.12.2024, whereby their claim for payment of interest on delayed release of retiral benefits has been rejected by the respondents.

b) It is the case of the applicants that they served the Jammu and Kashmir PHE/Jal Shakti Department in different capacities, namely as Chokidar, Line Jamadar and Pump Operator respectively, and rendered long years of service to the satisfaction of their superiors. It is pleaded that the applicants superannuated on attaining the age of retirement in February 2019, March 2020 and July 2020 respectively, and retired with unblemished service records.

c) The applicants contend that although their pension cases were eventually settled and Pension Payment Orders (PPOs) and Commutation Payment Orders (CPOs) were issued in their favour, the release of gratuity and other retiral dues was delayed by more than one year from the respective dates of their retirement. According to the applicants, such delay was wholly attributable to the respondents and was not occasioned due to any lapse or omission on their part.

d) Aggrieved by the inordinate delay in settlement of their retiral benefits, the applicants earlier approached this Tribunal by filing O.A. No. 61/1241/2024, seeking payment of interest on the delayed retiral dues in terms of Regulation 242 of the J&K Civil Service Regulations, Vol-I. The said Original Application was disposed of by this Tribunal vide order dated 19.11.2024, directing the respondents to consider and decide the claim of the applicants in accordance with law.

e) Pursuant thereto, the respondents passed the impugned order dated 30.12.2024, rejecting the claim of the applicants for interest on delayed payment of retiral benefits. The applicants have assailed the said order on the ground that it is arbitrary, non-speaking, and reflects total non-application of mind, as the respondents failed to appreciate the statutory mandate under Regulation 242 of the J&K CSR and the settled legal position governing payment of interest on delayed retiral benefits.

f) The applicants assert that retiral benefits constitute “property” within the meaning of Article 300-A of the Constitution of India and that unjustified withholding of the same entitles the retirees to compensation by way of interest. Reliance has been placed upon the judgment of the Hon’ble Supreme Court in Vijay L. Mehrotra v. State of U.P. (2001) 9 SCC 687, wherein interest at the rate of 18% per annum was awarded on delayed payment of re