Authorities must act timely on pension applications to avoid interest liabilities for delayed payments.

1. By way of the present petition filed under Art.226 of the Constitution of India, the Chief Engineer, Roads and Administration, Public Works Department, Government of Kerala and two others have challenged the report dated 26.09.2022 of the Kerala Lok Ayukta in Complaint No.901 / 2018 - C by which the Lok Ayukta, as provided under S.12(1) of the Kerala Lok Ayukta Act , 1999, recommended the Government of Kerala to pay interest @ 6% per annum on the Death - cum - Retirement Gratuity (DCRG) payable to the respondent for the period from 1.10.2017 to 20.11.2018, on the ground that the present petitioners had made the payment at belated stage.

2. Short facts leading to the filing of the writ petition are that, the respondent herein retired as Chief Engineer from the Public Works Department on 31.07.2017. Since he did not receive the DCRG in time, he filed a complaint before the Lok Ayukta on 18.09.2018 for a direction to release the amount of DCRG.

2.1. The writ petitioners filed a defence statement before the Lok Ayukta and tried to address the delay. By the impugned report dated 26.09.2022, the Lok Ayukta, on finding that there was delay on the part of the writ petitioners in payment of the DCRG, recommended the competent authority to ensure payment of interest @ 6% per annum for the period stated above. Hence this petition.

3. Learned Senior Government Pleader would submit that as per R.113 of the Kerala Service Rules (hereinafter referred to as the "Rules" for short) it is mandatory for an existing officer to make an application for pension before a period of one year from the date of his retirement.

3.1. It is an undisputed fact that the complainant retired on 31.07.2017, whereas he had made an application under R.113 of the Rules only on 01.08.2017 and thereafter the proceedings were completed and ultimately the amount was paid in November 2018. By taking us through the statement of defence, the learned Senior Government Pleader would submit that a certificate with regard to non - liability can be issued only after obtaining the last three years' non - liability certificates from the concerned offices and those certificates were issued only on 07.06.2018. Further, the certificates addressed to the Secretary to Government were sent on 6.7.2018 and, accordingly, communication was sent to the Department on 27.7.2018.

3.2. He would submit that as per R.113 of the Rules, the process of payment of pension and DCRG would commence only after receiving the application and, therefore, when the complainant himself was at fault in submitting the application after his retirement, petitioners cannot be held liable to pay the interest on the amount of DCRG. He, therefore, would submit that the writ petition be allowed.

3.3. Learned Senior Government Pleader would submit that even as per R.113 after receiving the application, three months' time has been granted to the authorities to pass appropriate orders with regard to pension and DCRG and, therefore, the Lok Ayukta ought not to have granted interest from 01.10.2017.

4. On the other hand, learned counsel for the respondent / complainant would submit that it is true that he made an application for pension on the next day of the retirement i.e. 01.08.2017. However, the petitioners had taken a long time to disburse the amount and only after about one year and three months, the amount has been disbursed in favour of the respondent and, therefore, the Lok Ayukta was rightly recommended for interest @ 6%, and that too subsequent to the period of two months from the date of his retirement till the amount was paid on 21.11.2018.

5. We have heard