Case Note & Summary
The petitioner, Dr. Dinkar Sadashivrao Deshpande, a retired employee of the Aurangabad Municipal Corporation, filed a writ petition seeking a direction to the Corporation to release his pensionary benefits with interest for the delay in payment. The petitioner retired on attaining the age of superannuation, but the Corporation delayed the payment of his pension and other retirement benefits without any justification. The petitioner approached the High Court by way of a writ petition under Article 226 of the Constitution of India, seeking a writ of mandamus directing the Corporation to release the benefits with interest. The Court heard the parties and considered the submissions. The Court observed that pension is not a bounty but a right of the employee, and any delay in payment without valid reason entitles the employee to interest. The Court directed the Corporation to release the pensionary benefits with interest at the rate of 6% per annum from the date of retirement till the date of actual payment, within a period of two weeks. The petition was allowed in part.
Headnote
A) Service Law - Pensionary Benefits - Delay in Payment - Interest - The petitioner, a retired employee of the Aurangabad Municipal Corporation, sought direction for release of pensionary benefits with interest for delay in payment. The Court held that pension is not a bounty but a right, and delay in payment without justification entitles the employee to interest. The Corporation was directed to pay the benefits with interest at the rate of 6% per annum from the date of retirement till actual payment. (Paras 1-3)
Issue of Consideration
Whether the petitioner is entitled to pensionary benefits with interest for the delay caused by the respondent Corporation in releasing the same
Final Decision
The petition is allowed in part. The respondent No.2 Corporation is directed to release the pensionary benefits with interest at the rate of 6% per annum from the date of retirement till the date of actual payment, within a period of two weeks.
Law Points
- Pension is not a bounty but a right
- delay in payment of pensionary benefits entitles employee to interest
- mandamus can be issued for enforcement of fundamental rights
