Devki Nandan vs State of H.P. and others

Surinder Singh, J.—The petitioner was initially appointed as a Teacher in the in the respondent-department in the year 1946. However, on 23.9.1988 he was served with the charge-sheet for the alleged misconduct in the year 1988 when he was promoted as B.P.E.O. He is alleged to have submitted a wrong certificate of matriculation for which an enquiry was held. But the petitioner was found to have possessed the certificate of Rattan with English equivalent to matric standard. As such enquiry was dropped and even criminal case was pending against him ended in acquittal on 4.3.1993. His suspension period was also revoked.

The petitioner retired from the service on 31.8.1989. He was paid retirement gratuity to the tune of ` 32,423/- on 19.1.2009 and revised gratuity of ` 3,877/- on 24.1.2009 vide Annexure R1. Other retiral benefits were not paid because of his suspension till finalization of the departmental enquiry. Thus, by means of present petition, the petitioner sought the release of his retiral benefits and leave encashment etc. with interest.

Precisely, respondents No. 1 to 3 contended that the delay in payment of the gratuity was owing to the pendency of the departmental enquiry and the criminal case, but admitted that he was acquitted in the criminal case and the departmental enquiry was dropped.

Respondent No. 4 despite repeated opportunities and also the last opportunity, did not file reply, as such their defence is closed.

Government of India''s instructions/ decision dated 11.7.1979 mentioned in Swamy''s Pension Compilation reads as under:

Where disciplinary or judicial proceedings against a Government servant are pending on the date of his retirement; no gratuity is paid until the conclusion of the proceedings and the issue of the final orders thereon. The gratuity, if allowed to be drawn by the competent Authority on the conclusion of the proceedings will be deemed to have fallen due on the date of issue of orders by the competent Authority.

In order to mitigate the hardship to the government servants who, on the conclusion of the proceedings are fully exonerated, it has been decided that the interest on delayed payment of retirement gratuity may also be allowed in their cases, in accordance with the aforesaid instructions. In other words, in such cases, the gratuity will be deemed to have fallen due on the date following the date of retirement for the purpose of payment of interest on delayed payment of gratuity. The benefit of these instructions will, however, not be available to such of the government servants who die during the pendency of judicial/disciplinary proceedings against them and against whom proceedings are consequently dropped.

A bare reading of these instructions shows that once an employee is exonerated in departmental proceedings or acquitted in judicial proceedings then the gratuity would be deemed to have fallen due on the date of retirement for the purpose of interest.

Therefore, in these circumstances, the petitioner is entitled for the simple interest @ 9% per annum on gratuity amount w.e.f. 1.12.1989, i.e., three months after his retirement till the actual payment of the aforesaid amount.

As far as the other retiral benefits are concerned, the respondent-department shall take a decision in the matter within a period of three months from the date of production of certified copy of this judgment and release the other retiral benefits within two months thereafter, failing which it shall carry interest at the rate of 12% from the date it fell due. The petition stands disposed of accordingly.