The Patna High Court recently directed to pay 5% simple interest on delayed payment of pension and gratuity.
During pendency of the earlier writ application, some payments were made and ultimately, the matter was referred to the Lok Adalat and the case was disposed of with a direction to the petitioner, Upendra Kumar Verma, to appear before the authorized officer/authority of the Department concerned for payment of statutory interest on account of delayed payment of retiral dues.
The petitioner appeared before the concerned authority and a reasoned order has been passed denying the interest to the petitioner upon pension and gratuity on the ground that the petitioner was himself responsible for the delay. An amendment petition has been filed by way of supplementary affidavit by the petitioner challenging the reasoned order.
The Counsel for the petitioner by assailing the reasoned order submitted that even if it is accepted that the petitioner was responsible for some delay, but, from perusal of the impugned order it would be evident that the sanction letter for payment of pension and gratuity was sent by the concerned authority to the Accountant General.
The Counsel further contended that he Accountant General demanded the service history/service book of the petitioner, but, the same was sent by the controlling authority. Therefore, his submission is that in view of the circular of the State Government is that the petitioner is entitled to be paid 5% interest upon delayed payment of pension and gratuity.
The counsel for the State argued that the petitioner did not produce the deduction towards the income tax for the period 2013-14. Despite repeated demand by the concerned authority, he failed to produce income tax deduction, and, ultimately in the year 2015 on the basis of the materials available on record, the last pay drawn of the petitioner was fixed and the sanction letter was sent to the Accountant General for payment of pension and gratuity of the petitioner.
The Court of Justice Anil Kumar Sinha noted that “Even the submission of learned counsel for the State is accepted, there is apparent delay in payment of interest on the part of the respondents/State between 26.7.2016 and 26.5.2017.”
The Court also directed the concerned authority to pay the simple interest @ 5% on pension as well as gratuity for the aforesaid period to the petitioner within a period of three months from the date of receipt/production of a copy of the order.
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