Delve into the High Court’s meticulous legal analysis regarding the entitlement to interest payment for delayed retirement benefits in our latest blog post. The Court’s decision sets a significant precedent in cases of delayed financial disbursements. Learn more about the nuances of this legal case and the implications of the court’s ruling.
Facts
- The Division Bench of the High Court disposed of the appeal by stating that the decision lies with the Government based on the enquiry report.
- The appellant is entitled to interest on delayed payment but the responsibility for the delay is yet to be determined by the Government.
- No further orders were passed by the Division Bench of the High Court regarding the delayed payment and interest.
- The original appellant, feeling aggrieved by the lack of order on interest, filed the present appeal.
- The learned Single Judge directed the appellant to make a representation to the Director of Collegiate Education on the delayed payment issue.
- The Director of Collegiate Education was instructed to consider and take appropriate action promptly after hearing all concerned parties.
- The Writ Appeal No.704 of 2020 was filed when no order was passed regarding the interest on delayed payment.
- The Division Bench issued an interim directive on 09.08.2021 for verification of the writ petitioner’s retiral benefits at C.B.M College, Coimbatore.
- The appellant, a retired Associate Professor of Chemistry from C.B.M. College, Coimbatore, retired in 06.2011.
- The writ petition stated that terminal benefits were settled during the pendency of the case.
- The former Secretary, Shri C.M. Ramaraj, was unwell and couldn’t file objections to the enquiry report.
- If there is any delay, the third respondent must report to the Court on the responsible person and the liability for interest payment.
- The appellant requested action against the erring officers for the delay and interest on the delayed retiral benefits payment.
- The appellant filed Writ Petition No.3224 of 2013 due to delay in pensionary benefits payment despite multiple correspondences.
- The appellant worked in an aided college, and the issue was limited to interest on delayed pensionary benefits.
- A government enquiry found Shri C.M. Ramaraj responsible for the delay in terminal benefits disbursement.
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Arguments
- Learned counsel for the appellant presented arguments.
- Learned counsel for the Management/Trust presented arguments.
- Shri P. Wilson, learned Senior Advocate, represented respondent No.1.
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Analysis
- The government conducted an enquiry and held the college liable for the delay in disbursal of retirement benefits.
- The former Secretary was found responsible for the delay.
- The college/management is first liable to pay the interest on the delayed payment of retirement dues.
- The appellant employee, not responsible for the delay, is entitled to the interest on the delayed payment.
- The Division Bench of the High Court also recognized the appellant’s entitlement to interest on delayed payment.
- An inter se dispute exists between the Secretary, Management, and Government regarding responsibility for the delay.
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Decision
- The appeal succeeds, quashing the impugned judgment denying interest on delayed retirement benefits to the appellant.
- The Management/Trustees/College are directed to pay interest on delayed retirement benefits to the Appellant from the date of retirement till actual payment, with the possibility of recovering it from the responsible party.
- Interest on delayed payment to be paid within six weeks.
- The Government to make a final decision after giving an opportunity to the College/Management/former Secretary.
- The appeal is allowed with the option to challenge the decision, and pending applications are disposed of.
Case Title: A. SELVARAJ Vs. C.B.M. COLLEGE (2022 INSC 264)
Case Number: C.A. No.-001698-001698 / 2022
