Retired employees are entitled to interest on retiral benefits if the disbursement is delayed beyond two months from the date of retirement, provided no disciplinary or judicial proceedings are pending against them.

HARPREET SINGH BRAR, J. (Oral)

1. The present petition has been filed under Article 226/227 of the Constitution of India praying for issuance of a writ in the nature of mandamus directing the respondents to release the interest at the rate of 18% for the delayed period of withholding the payment of retiral dues and payment of arrears of salary by the respondent without any reason, in an arbitrary manner. Further praying for setting aside the order dated 07.04.2022 (Annexure P-8).

2. Learned counsel for the petitioner, inter alia, contends that the petitioner retired from the service of the respondent-Federation, on 31.08.2009 as Field Officer, yet his retiral dues were not released immediately upon his retirement. The respondent was duty-bound to disburse the same within two months from the date of retirement; however, the petitioner’s pensionary benefits were released only after an inordinate and unjustified delay. As such, the delay in releasing all his retiral dues entitles the petitioner for grant of interest on delayed payment in terms of the judgment rendered by a Full Bench of this Court in A.S. Randhawa Supdg. Engineer (Retd.) vs. State of Punjab 1998 (1) SCT 343. Learned counsel for the petitioner further submits that, at the time of the petitioner’s retirement, no disciplinary or judicial proceedings were pending against him, nor had any charge-sheet been issued. In the absence of any pending proceedings or charge-sheet, the respondent has no authority in law to withhold the petitioner’s retiral dues.

3. Learned counsel for the petitioner supplied the calculation sheet of the retiral dues in the Court which is ordered to be taken on record as Mark ‘X’. Registry is directed to place the same at an appropriate place. Copy thereof is also supplied to the opposite counsel. The petitioner has received the following amounts without any interest, which may read as under:-

Date of 31.08.2009 Petitioner’s retirement

4. Per contra, learned counsel for the respondent submits that the retiral dues have already been paid to the petitioner. However he is unable to dispute that there has been an inordinate delay in the release of the retiral dues and that the case of the petitioner stands squarely covered by the judgment passed in A.S. Randhawa (supra).

5. Having heard the submission made by learned counsel for the parties and after perusing the record with their able assistance, it transpires that the petitioner retired from the service on 31.08.2009 and his retiral dues have been paid after an inordinately long delay. The respondent was obligated to release his all retiral dues within two months of his retirement. As such, his case is squarely covered by the judgment rendered by a Full Bench of this Court in A.S. Randhawa (supra) wherein it was opined that disbursement of pension and other benefits payable at retirement must be done in a timely manner. Any delay over a period of two months qua the said disbursement would entitle the retired employee to claim interest on the amount due.

6. In view of the above, the present petition is disposed of with direction to the respondent/competent authority to release interest on the delayed payment of the admissible retiral dues accrued to the petitioner at the rate of 6% per annum. Such interest shall be calculated f