Retired employees are entitled to timely payment of dues and may claim interest on delays, reinforcing employers' obligations to fulfill retirement benefits expediently.

JUDGMENT

This writ petition is filed by the petitioners seeking to command the respondents to ensure payment of the petitioners' Provident Fund and also grant of grade promotional benefits and consequential arrears emanating therefrom, within a time limit, and for other related reliefs.

2. Petitioners are employees retired from 1st respondent Society. Petitioners retired from service on 31.05.1999, 31.07.2002, 30.06.2004 and 31.10.2002 respectively. It is the contention of the petitioners that, in spite of their earnest efforts, the retiral benefits and other service benefits are not paid to them. It is in that circumstances, the petitioners were compelled to approach this Court by filing this writ petition.

3. The 2nd respondent has filed a counter affidavit virtually admitting that the petitioners were retired employees of the 1st respondent and that retirement benefits are due to the petitioners. Contention raised in the counter affidavit with respect to non-payment of the benefits is that the records of the Society are not available for audit due to old age and mutilation of records, and that the audit of the records up to 2012-13 is pending. That apart, it is contended that a liability is outstanding to the Palakkad District Co-operative Bank. Further, it is stated that the service records of the petitioners were not available with the Society. However, it is submitted that steps have been taken for completion of audit with the available records and on completion of audit, the benefits if any, payable to the petitioners will be paid in accordance with the financial position of the Society. The said counter affidavit is dated 01.04.2014.

4. Heard learned counsel for the petitioner and the respective counsel appearing for the respondents.

5. Going by the counter affidavit filed by the 2nd respondent, it is categoric and clear that amounts are due from respondents 1 and 2 to the petitioners and the only circumstance which prevented the respondents from paying the retiral benefits and other benefits to the petitioners is that, audit was going on, some records were mutilated and further that the records pertaining to the employment of the petitioners were missing. Anyhow, it is admitted that, as and when the audit is over, whatever benefits remaining due will be paid to the petitioners.

6. Having considered the rival submissions and taking note of the specific statements contained in the counter affidavit filed by the 2nd respondent, I am satisfied that the retiral as well as other service benefits are due from respondents 1 and 2 to the petitioners. Therefore, respondents are liable to quantify the same and pay the same within a time frame.

7. Therefore, there will be a direction to the 2nd respondent to quantify the retiral and other service benefits due to the petitioners and pay the same within a period of two months from the date of receipt of a copy of this judgment.

8. The petitioners were retired more than a decade back, and it is quite surprising to note that for some technical reasons, the retiral benefits and other service benefits were detained. Therefore, it is a well-settled principle in law that the service benefits, unless there are any impediments, should be paid to the retired employees without any delay. Here is a case where there is huge delay in disbursing the retiral and service benefits. Therefore, I think that petitioners are entitled to get interest for whatever amounts outstanding towards the aforesaid dues. Taking into account the long delay, I am satisfied that, interest at the rate of 7% shall be paid to the petitioners from the respective dates of their retirement till payment.

The writ petition is disposed of accordingly.