Judicial Analysis Court Copy Headnote Facts Arguments Court observation

2023 Supreme(Online)(P&H) 35076

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH

2026:PHHC:050357

CWP-6290-2023 (O&M) and three connected matters

Date of decision: 01.04.2026

1. CWP-6290-2023 (O&M)

Gurjant Singh and others

.....Petitioners

VERSUS

State of Punjab and others

.....Respondents

2. CWP-11253-2023

Dalwara Singh and others

.....Petitioners

VERSUS

State of Punjab and others

.....Respondents

3. CWP-14806-2023

Jagdev Singh

.....Petitioner

VERSUS

State of Punjab and others

.....Respondents

4. CWP-17081-2023

Vinod Kumar @ Vinod Kumar Anand

.....Petitioner

VERSUS

State of Punjab and others

.....Respondents

CORAM: HON'BLE MR. JUSTICE HARPREET SINGH BRAR

Present : Mr. Peeush Gagneja, Advocates for the petitioner(s).

Mr. Vikas Sonak, AAG, Punjab.

Mr. Aditya Pratap Singh, Advocate for respondent No.3 in CWP-6290-2023.

Ms. Gurneet Sagoo, Advocate for respondent No.4 in CWP-17081-2023.

Mr. Parminder Singh, Advocate for respondent NO.3 in CWP-11253-2023.

Ms. Khushboo Garg, Advocate for Ms. Bindu Goel, Advocate for respondent No.3 in CWP-14806-2023.

Advocates:
For the Appellants/Petitioners: Peeush Gagneja
For the Respondents: Vikas Sonak, Aditya Pratap Singh, Gurneet Sagoo, Parminder Singh, Khushboo Garg, Bindu Goel

Retiral benefits are a vested right of an employee upon superannuation; therefore, any inordinate delay in their disbursement beyond a reasonable period of two months entities the retiree to interest, regardless of administrative or procedural exigencies cited by the employer.

Headnote:(A) Constitution of India - Articles 226/227 - Retiral benefits - Entitlement to revised pension, gratuity, and leave encashment upon superannuation - Delay in disbursement - Respondents attributed delay to procedural formalities and administrative exigencies - Court held retiral benefits are not a bounty but a vested right - Inordinate delay entitles employees to interest - Respondent bodies directed to calculate and release arrears with 6% interest per annum after a two-month grace period from retirement date. (Paras 2, 5.1, 5.2, 5.5, 7, 8)

(B) Service Law - Liability of last employer - Responsibility to secure contributions from previous employers rests on the last employer - Employee cannot suffer due to administrative disputes or lack of contribution transfers. (Paras 5.7, 5.8, 6, 6.1)

Facts of the case:
The petitioners, retired employees from various Municipal Bodies, sought payment of revised pension, gratuity, and leave encashment pursuant to the 6th Pay Commission recommendations adopted by the Punjab Government. While some petitioners received principal amounts without interest, others had not received any payments at all due to alleged procedural delays.

Findings of Court:
The court found the delay unjustified and rejected the respondents' plea of administrative exigency. It held that the entitlement was not in dispute and directed payment of all dues along with 6% interest starting two months post-retirement.

Issues: Whether the delay in disbursing retiral benefits is justified by administrative exigencies and whether the petitioners are entitled to interest on late payments.

Ratio Decidendi: Retiral benefits constitute a vested right; therefore, any delay beyond a reasonable period (two months) entitles the retiree to interest. The last employer holds the primary responsibility for ensuring complete disbursement regardless of inter-departmental contribution transfers.

Result: Petitions allowed with directions for expedited payment and interest calculation.

HARPREET SINGH BRAR, J. (Oral)

CM-4798-CWP-2025 in CWP-6290-2023

The present application has been filed under Section 151 of CPC for placing on record replication and Annexures P-7 to P-10.

In view of the grounds mentioned in the application, the same is allowed, subject to all just exceptions. Annexures P-7 to P-10 are ordered to be taken on record.

Registry is directed to place the same at an appropriate place.

CM-4799-CWP-2025 in CWP-6290-2023

Allowed as prayed for.

CM-944-CWP-2026 in CWP-6290-2023

The present application has been filed under Section 151 of CPC for placing on record Annexures P-11 to P-15.

In view of the grounds mentioned in the application, the same is allowed, subject to all just exceptions. Annexures P-11 to P-15 are ordered to be taken on record.

Registry is directed to place the same at an appropriate place.

CM-945-CWP-2026 in CWP-6290-2023

Allowed as prayed for.

MAIN CASES

1. This order shall dispose of the above-mentioned writ petitions as they arise from a similar factual matrix. However, for the sake of brevity, the facts are taken from CWP-6290-2023.

2. The petitioner has approached this Court by filing the present writ petition under Articles 226/227 of the Constitution of India praying for issuance of a writ in the nature of mandamus directing the respondents to release the amount of revised pension, leave encashment, gratuity, as well as arrears of revised pension and all other consequential benefits along with interest @ 18% per annum and for which a legal notice dated 21.12.2022 (Annexure P-5) has been served by the petitioners.

3. Learned counsel for the petitioners submits that all the petitioners were appointed and served in different Municipal Bodies on Class-III and Class-IV posts and, upon attaining the age of superannuation, stood retired from the office of the Municipal Corporation, Abohar, during the period from 31.03.2016 to 31.05.2021, as is evident from Annexure P-1. It is further submitted that, vide circular dated 29.10.2021 issued by the Government of Punjab, Department of Finance, the recommendations of the 6th Pay Commission with regard to pension and other retiral benefits were made applicable to employees who retired on or after 01.01.2016. However, despite the aforesaid policy decision, the petitioners have neither been extended the benefit of enhanced gratuity and leave encashment nor have they been granted revised pension in accordance therewith.

3.1 Learned counsel further submits that the respondent Department of Local Government, vide communication dated 22.12.2022, conveyed approval to all Municipal Bodies for disbursement of enhanced gratuity. In pursuance thereto, the petitioners also served a legal notice upon the respondents, requesting release of their legitimate retiral dues; however, no action was taken and the same remained unaddressed. It is further contended that respondent No.2, vide instructions dated 07.03.2023 (Annexure P-6), clarified that even those employees of the Local Government who had retired prior to the notification dated 05.01.2022 are entitled to the benefit of enhanced gratuity in terms of the applicable Service Rules of the Government Departments.

3.2 Learned counsel further submits that petitioners in CWP No.6290 and 11253 of 2023 have been released their admissible retiral dues, no interest has been paid to them for the inordinate delay in disbursement. It is, thus, contended that there has been an inordinate, unexplained and wholly unjustified delay in the settlement of retiral benefits, which, per se, entitles the petitioners to the grant of interest in view of the ratio laid down by the Full Bench in A.S. Randhawa, Superintending Engineer (Retd.) vs. State of Punjab, 1998 (1) SCT 343. In contrast, the petitioners in CWP No. 14806 and 17081 of 2023 have not been paid any retiral benefits till date, despite repeated representations, thereby rendering the inaction of the respondents arbitrary, illegal, and unsustainable in the eyes of la

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