Mohinder Kaur and Others vs State of Punjab and Others

Ajay Tewari, J.—Prayer in this writ petition is for grant of interest on delayed release of GPF amount. Counsel for the petitioners has argued that the husband of petitioner No. 1 retired from service on 31.3.2011 and the amount of GPF was released only on 17.3.2012.

In the written statement, the delay has been attributed to the fact that payment was made after complete correspondence with the higher authorities.''

In my considered opinion, this cannot be a ground for delaying the payment of GPF, which otherwise becomes liable for payment on the last date of service of an employee. Rule 13.13(1) of the Punjab Civil Service Rules (Vol. II) lays down to the following effect:-

13.13(1) Subject to the provisions of clause (5) below, Government shall pay to the credit to the account of the subscriber interest at such rate as may be determined for each year according to the method of calculation prescribed from time to time by the competent authority.

The above said provision, thus, unequivocally entitles the employees for interest on GPF amount at the rate fixed by the government from time to time.

Resultantly, this writ petition is allowed. The respondents are directed to pay to the petitioner interest on delayed payment of GPF from 1.4.2011 to 16.3.2012 at the rate which was determined for the financial year 2011-2012. Let necessary payment be made within a period of four weeks from the date of receipt of a certified copy of this order. It is made clear that in case, payment is not made within the aforesaid period, the petitioners would be entitled to further interest @ 8% p.a. w.e.f. 16.3.2012 till the date of payment. No order as to costs.