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2025 Supreme(Online)(Ker) 53616

IN THE HIGH COURT OF KERALA AT ERNAKULAM
SUSHRUT ARVIND DHARMADHIKARI, P. V. BALAKRISHNAN, JJ
UNION OF INDIA REPRESENTED BY THE GENERAL MANAGER, SOUTHERN RAILWAY, PARK TOWN P.O., CHENNAI, PIN - 600003 – Appellant
Versus
SAJI GEORGE THOMAS AGED 63 YEARS S/O. THOMAS, RETIRED SENIOR CLERK/S&T, KOTTAYAM, TRIVANDRUM DIVISION, SOUTHERN RAILWAY, RESIDING AT THECKEKANNAMPURAM, PAMBADI P.O., KOTTAYAM, PIN - 686502 – Respondent
OP (CAT) NO. 127 OF 2025



Advocates:
For the Appellants/Petitioners: SHRI.K.SHRI HARI RAO, SENIOR PANEL COUNSEL

The entitlement of retired employees to receive timely benefits, with interest awarded for delays in payment, is upheld.

Headnote:Statute Analysis: The case involves a challenge under Article 227 of the Constitution regarding the Central Administrative Tribunal's decision. Facts of the Case: The respondent, a retired Senior Clerk, claimed unpaid terminal benefits after retirement on 31.05.2022.

Findings of Court:
The court upheld the Tribunal's directive for interest on delayed payments, highlighting no error in their decision.

Issues: The court examined whether the interest awarded was excessive.

Ratio Decidendi: The court reasoned the Tribunal acted within its jurisdiction in directing payment of interest, emphasizing the entitlement of retirees to timely benefits.

Result: The Original Petition is dismissed.

Table of Content
1. court evaluates grievance over unpaid retirement benefits. (Para 1 , 2 , 3)
2. court affirms the jurisdiction of the tribunal in awarding interest. (Para 4)

Judgment Sushrut Arvind Dharmadhikari, J The present Original Petition under Article 227 of the Consti-

tution of India challenges the order dated 06.12.2024 in O.A.No.180/0070/2023 passed by the Central Administrative Tribu- nal, Ernakulam Bench whereby the Original Application filed by the respondent herein has been allowed.

2. The brief facts of the case are that the respondent was working as Senior Clerk who retired from service of the Railways on 31.05.2022. On the date of retirement, he was promoted as Sen- ior Clerk and his salary was fixed at the basic pay of Rs.49,600 in Level-5.

2.1 The grievance of the respondent was that the terminal bene-

fits due to him were not paid. Hence, he filed the Original Appli- cation seeking direction to the appellants to sanction the benefits due to him including the retirement gratuity, leave salary, arrears of monthly pension, commutation etc. with 12% interest with effect from 1.7.2022, till the date of actual payment.

3. The learned Tribunal, considering the delay in payment of gratuity, leave encashment etc., had directed the petitioners to quantify the interest payable on gratuity amount and leave salary at the rate of 9% with effect from 01.07.2022 till 13.03.2023 within a period of three months from the date of receipt of a copy of this order failing which the amount shall carry further interest at 9%

till the payment is made.

4. The learned counsel for the petitioners contended that the learned Tribunal erred in passing the order with interest at the rate of 9% per annum. The learned counsel further pointed out that the respondent was involved in some misconduct and on medical ground, he was de-categorised and absorbed as a junior clerk with pay protection in the Trivandrum Division of the Southern Railway. The rate of interest awarded by the learned Tribunal is on a higher side since the Government of India has fixed the interest rate ap- plicable to the State Railway Provident Fund deposits at 7.1% per annum, whereas under the provisions of Section 34 of the Code of Civil Procedure , the rate of interest is fixed only at 6% per annum. The learned counsel for the petitioners further contended that the interest rate fixed appears to be on too higher side, and therefore, the order may be liable to be set aside.

5. Heard Sri.K.Shri Hari Rao, the learned Senior Central Gov-

ernment Counsel and perused the records.

6. Admittedly, the respondent superannuated on 31.05.2022.

Thereafter all the benefits were granted on 13.03.2023 to the re- spondent. The learned Tribunal did not grant any interest for the period from 31.05.2022 to 01.07.2022 and in normal circumstances, the retiral benefits should be paid to a retired employee. Therefore, the Tribunal directed payment at 9% interest with effect from 01.07.2022 till 13.03.2023. The learned Tribunal has exercised its jurisdiction in accordance with law.

We do not find any error in the order passed by the learned Tribunal. Accordingly, the Original Petition, being bereft of merit and substance, is hereby dismissed.

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