Case Note & Summary
The petitioner, Karamshibhai Laljibhai Gajjar (since deceased, represented by legal heirs), filed a writ petition under Articles 14, 16, 21, and 226 of the Constitution of India before the Gujarat High Court. The petitioner had retired from service on 31.01.2008 after serving from 01.07.1989 to 31.01.2008. The grievance was that the respondent authorities (State of Gujarat and another) had not paid the retiral benefits due, including gratuity, leave encashment, and benefits of the 6th Pay Commission, and had also allegedly recovered an amount of Rs.2,45,795/- from the petitioner's salary before retirement. During the pendency of the petition, the respondents paid all the retiral benefits to the petitioner. However, the petitioner contended that there was an inordinate delay in making the payment, as the benefits were paid only during the pendency of the petition, several years after retirement. The petitioner sought interest on the delayed payment. The court considered the submissions of both sides. The learned advocate for the petitioner argued that the delay was unjustified and the petitioner should be compensated with interest. The respondents opposed the grant of interest. The court, after hearing the parties, held that the petitioner is entitled to interest at the rate of 6% per annum on the delayed payment of retiral benefits from the date of retirement (31.01.2008) till the date of actual payment. The court directed the respondents to calculate the interest and pay it to the petitioner within eight weeks. The petition was disposed of accordingly.
Headnote
A) Service Law - Retiral Benefits - Interest on Delayed Payment - The petitioner retired on 31.01.2008 and was entitled to retiral benefits including gratuity, leave encashment, and 6th Pay Commission benefits, which were paid belatedly during the pendency of the petition. The court held that the petitioner is entitled to interest at 6% per annum on the delayed payment from the date of retirement till the date of actual payment, as the delay was inordinate and without justification. (Paras 1-6)
Issue of Consideration
Whether the petitioner is entitled to interest on delayed payment of retiral benefits after retirement.
Final Decision
The court directed the respondents to pay interest at 6% per annum on the delayed payment of retiral benefits from the date of retirement (31.01.2008) till the date of actual payment, within eight weeks. The petition was disposed of.
Law Points
- Interest on delayed payment of retiral benefits
- Writ of mandamus
- Articles 14
- 16
- 21
- 226 of Constitution of India
