Kishan Lal vs Govt. Of NCT Of Delhi Through The Chief Secretary And Ors

Mohd. Jamshed, Member (A)

The applicant was working as Principal in Directorate of Education, Government of NCT of Delhi. He was issued a show cause notice dated 06.05.2013 seeking his explanation in connection with certain irregularities committed in granting admissions during 2012, without following the guidelines of the department. The applicant submitted a detailed representation on 20.05.2013 explaining the position. The respondents vide memorandum dated 30.12.2014 issued a major penalty charge sheet to the applicant, a day prior to his retirement. The applicant retired from service on 31.12.2014. Inquiry was held and the applicant was exonerated of the charges levelled against him vide order dated 24.08.2017. During the pendency of the disciplinary proceedings, the applicant filed an OA No. 1748/2015 before this Tribunal, seeking expeditious conclusion of proceedings, which was decided vide order dated 11.05.2015. The Tribunal directed the respondents to complete the disciplinary proceedings as early as possible and not later than six months.

The applicant during this period filed another OA No. 3155/2015 seeking release of his due leave encashment amount. The Tribunal directed the respondents that in view of the delay in releasing of the leave encashment and group insurance payments to the applicant, payment of interest @ 9% on the amount released towards leave encashment and GIS for the period from 01.01.2015 to 5. 03.2016 be paid to the applicant. This order was challenged by the respondents in the Hon'ble High Court of Delhi. It is stated that the Writ Petition is pending before the Hon'ble Delhi High Court. However, the directions of the Hon'ble Tribunal have been implemented in the meantime by the respondents. As the applicant was exonerated of all the charges, he made representation to the respondents for payment of gratuity and commutation.

It is submitted that respondents have paid these due amounts to him vide order dated 04.12.2017 but the interest on the delayed payments on these amounts has not been paid. The applicant has relied upon judgments of the Hon'ble Apex Court in S. K. Dua Vs. State of Haryana and Ors reported in 2008 page - 108, Vijay L. Mehrotra Vs. State of U.P. Reported in JT 2000(5) SC 171, Gorakhpur University & Ors. Vs. Sheetla parshed Nagendra & Ors. Reported in 2001(6) SCC 591 and R. Kapoor Vs. Director of Inspection 1994(6) SCC 589 holding that in cases where the employee has been exonerated of all the charges and proceedings have been dropped, the applicant is entitled to interest on delayed payments on terminal benefits. The applicant has now filed this OA seeking the following relief(s):-

"i) That the Hon'ble Tribunal may graciously be pleased to pass an order directing the respondents to grant interest @ 18% PM on all the retirement benefits i.e. gratuity, commutation etc. from due date till the date of payment.

(ii) Any other relief which the Hon'ble Tribuanl deem fit and proper may also be granted to the applicant along with the costs of litigation."

The respondents in their counter reply have opposed the OA indicating that various due payments have already been made to the applicant such as leave encashment amount, GIS amount, Commutation and also the Gratuity. It has also been stated that the disciplinary proceedings were also delayed on account of non cooperation by the applicant and therefore the same could not be completed earlier. They have also opposed applicant's prayer for payment of interest on pension and commutation amount on this ground.

Heard Mr. Yogesh Sharma, learned counsel for the applicant and Ms. Deepika Garg, learned counsel for the respondents, perused the records and relied upon judgments.

The applicant retired on 31.12.2014. One day prior to his retirement, he was issued a memorandum for major penalty dated 30.12.2014 for various irregularities committed by the applicant. Disciplinary proceedings continued after his retirement and as per the extant rules his pensionary benefits were also withheld in view of the ongoing disciplinary proceedings. However, he approached this Tribunal by filing OA No. 1748/2015 to direct the respondents to complete the disciplinary proceedings early. The applicant filed another OA No. 3155/2015 seeking payment of interest on the delayed payment of the leave encashment and insurance, which were due to him on 31.12.2014. This Tribunal vide order dated 08.08.2016 granted the relief by passing the following order:-

"6. Considering the totality of the situation and also taking into consideration the fact that the applicant was entitled for release of the leave encashment and group insurance payments on the day of the retirement i.e. on 31.12.2014 and the same has been released to him on 05.03.2016, I hold that the applicant is entitled for interest on the delayed payments. I, therefore, direct the respondent No. 2 (Director of Education), GNCTD to pay interest @ of 9% on the amounts released towards leave encashment and group insurance (GIS) for the period from 01.01.2015 to 05.03.2016. This shall be done within a period of two months from the date of receipt of a copy of this order."

On Completion of the disciplinary proceedings, the disciplinary authority vide order dated 24.08.2017 exonerated the applicant of all the charges. The respondents sanctioned payment of commutation and gratuity vide order dated 04.12.2017. However, no interest has been paid on these amounts by the respondents as requested by the applicant vide his representation dated 11.11.2017 and 28.08.2017. Vide this OA, he is seeking relief in terms of grant of interest @ 18% on delayed payment of gratuity and commutation amounts.

The respondents have opposed the payment of interest as requested by the applicant on the ground that there has been delay in finalising the disciplinary proceedings on account of non-cooperation by the applicant. It was also argued that although, the applicant has been exonerated of all the charges, the Inquiry Officer had concluded both the charges as proved. The Competent Authority has taken a lenient view and the applicant has been exonerated of all the charges. The payments of gratuity and commutation have also been released and therefore he is not entitled for any interest as there has not been any significant delay in the payment of these amounts. The averments made by the respondents could not be accepted as the facts are clear that the disciplinary proceedings continued post retirement for almost over two and a half years thereby delaying the release of due amounts of gratuity and commutation. The applicant has however been exonerated of all the charges and is therefore entitled for payment of interest due to delayed payment from the date of his retirement till the sanction order dated 04.12.2017.

I am, therefore, of the view that the applicant is entitled for relief in terms of payment of interest at the current GPF rate on the delayed payment of gratuity and commutation amount from the date of his retirement on 31. 12.2014 till the sanction order dated 04.12.2017. Respondents are directed to make the due payments of interest within a period of three months from the date of receipt of certified copy of this order.

The OA is accordingly allowed. There shall be no order as to costs.