Rameshchandra Bhatt vs State of M.P. and others

Sujoy Paul, J.—Petitioner is an Assistant Teacher retired on attaining the age of superannuation on 30/06/2010. Petitioner, for his excellent services was given President''s award, which is reflected from order dated 24/09/2003 Annexure-P/2. His retiral dues were not paid, hence, he filed this petition. Respondents have not chosen to file any reply to the petition, but filed an application for dismissing the petition as rendered infructuous. By placing reliance Annexure-A/1 (PPO) and other documents, it is submitted that payment has been made during pendency of the petition.

Shri Rana learned counsel for the petitioner has not disputed that retiral dues have been paid to the petitioner. He submits that requisite payment was made belatedly and therefore, petitioner is entitled for interest.

It is opposed by the other side on the ground that there is no reason to pay interest.

I have heard learned counsel for the parties and perused the record.

In catena of judgments, the Apex Court opined that the retiral dues of a Government employee are not bounty, the same are differed payment for long services rendered by the employee to the department. Thus, payments are required to be made on the date of retirement, so that retired employee can discharge his social obligations and settle peacefully in the December of his life. This view is taken by Supreme Court in Dr. Uma Agrawal Vs. State of U.P. and Another, ]; AIR 2000 SC 3513a; State of Kerala and Others Vs. M. Padmanabhan Nair, ]. Apart from this, the Apex Court in various judgments opined that when there is a delay, which is solely attributable to the department in making payment of retiral dues, it must carry interest. This view was taken in Union of India Vs. Justice S.S. Sandhawalia (Retd.) and others, nd followed in (2006) 6 SCC 455 [Union of India and another Vs. M.S. Abdulla] and S.K. Dua Vs. State of Haryana and Another, A Division Bench of this Court recently passed an order in W.A. No. 395/2012 State of M.P. and Others Vs. Ramji Das Agarwal, . In the said judgment, the Division Bench has taken note of Rule 57 of M.P.C.S. (Pension) Rules 1976 and Finance Department circular dated 25/04/1984. By conjointly reading the said provisions, it was directed to pay 12% interest per annum on the belated payment of retiral dues. I am bound and in respectful agreement with the order of Division Bench.

Consequently, petition deserves to be and is hereby allowed. Respondents are directed to pay interest @ 12% p.m. on delayed payment from the date of retirement till the date of actual payment as directed in Ramji Das Agarwal (supra). The aforesaid amount be calculated and paid to the petitioner within 90 days. Petition is allowed to the extent indicated above. No costs.