Government employees are entitled to simple interest on the delayed payment of retiral dues, with the specific rate determined by the court based on the facts, circumstances, and prevailing interest rates.

(Cause title is taken from CIS)

Order on Board

1. Petitioner has filed this writ petition seeking following reliefs:-

“(i) That this Hon’ble Court may kindly be pleased to direct the respondent authorities to release outstanding retiral dues with 18% interest as per Sanctioned Payment Order (mentioned in para 8.3) within stipulated time period, in the interest of justice.

(ii) Any other relief which may be suitable in the facts and circumstances of the case, may also be granted. ”

2. Learned counsel for the petitioner submit that petitioner has been paid all the retiral dues for which he is entitled for after filing of this writ petition. He contended that petitioner stood retired from the post of Assistant Grade – I upon attaining the age of superannuation on 30.06.2025. On the date of retirement petitioner was entitled for amount of gratuity, pension and commutation pension amounts. He submits that in this petition documents in this regard has been filed as Annexure P/2. Referring to the provisions under Pension rules, he submits that all retiral dues is to be paid to the petitioner on the date or on the next date the government servant stood retire and for that the respondents authorities are to exercise and compute the retiral dues 6 months prior to date of retirement of the concerned government employee. He also submits that the issue of the payment of the retiral dues to the government servant immediately after retirement pending for consideration in case of Shyam Dev vs. State of Chhattisgarh & Others, WPS No.5256/2016 wherein the Court has issued the guidelines and also has awarded the interest @18% for the delay payment of the retiral dues. He also contended that Division Bench of this Court in the case of Ravindra Kumar Kukreja vs. Chhattisgarh Rajya Gramin Bank , WA No.259/2025, considering the decision upon which Hon’ble Supreme Court in M. R. Gupta vs. Union of India and others reported in 1995 SCC (5) 628 and Vijay L. Mehrotra vs. State of UP and others repored in 2000 AIR SCW 2678 had awarded 18% simple interest to the petitioner therein on delay payment of retiral dues.

3. Counsel for the State oppose the submission made by learned counsel for the petitioner would submit that on the writ petition there is no specific pleading as to what amount has been paid and what amount has not been paid. He also contended that according to his instructions the gratuity of Rs.15,70,239/- and amount towards pension Rs.10,06,704/- and amount of commuted pension of Rs. 3,88,027/- has been paid after filing of this writ petition.

4. I have heard learned counsel for the parties.

5. The payment of all the retiral dues to the petitioner is not disputed by the counsel for the petitioner, he however submits that as the payment has been made with a delay the petitioner is entitled for the interest. Hon’ble Supreme Court in case of Vijay L. Mehrotra (supra) has clearly held that all the payments of retiral dues should be paid on the date of retirement or immediately thereafter. On finding of disbursement with delay in making payment awarded simple interest of 18% per annum with effect from the date of retirement till the date of receiving payment. Further Division Bench of this Court in case of Ravindra Kumar Kukreja (supra) taking note of the decision in the case of M.R. Gupta (supra) as also Vijay L. Mehrotra (supra) has awarded interest of 18% simple interest from the date of payment of withhold retiral dues.

6. Award of interest in delayed payment of retiral dues is settled. Hon’ble Supreme Court in cases of like nature had awarded interest of different rate