Case Note & Summary
The petitioner, Dineshbhai Chhaganbhai Rana, a retired employee of Gujarat Vidyapith, filed a writ petition under Articles 14, 21, and 226 of the Constitution of India seeking a direction to the respondent to pay his yearly increment due on 01.07.2017 and revise his pay accordingly, along with arrears and interest. During the pendency of the petition, the respondent paid the increment due on 01.07.2018 on 20.02.2025, amounting to Rs.1,63,282/-, but without any justification for the delay. The petitioner then confined his claim to interest on the delayed payment and the difference in retirement dues. The respondent opposed the claim, arguing that the delay was due to administrative reasons and that the petitioner had not worked after retirement. The court, however, found no justification for the delay and held that the petitioner was entitled to interest at 6% per annum from the due date (01.07.2018) until the date of payment. The court also directed the respondent to calculate and pay any difference in retirement dues within eight weeks. The petition was allowed in part, with no order as to costs.
Headnote
A) Service Law - Annual Increment - Delayed Payment - Interest - Petitioner, a retired employee, was entitled to annual increment due on 01.07.2018, but the respondent paid it on 20.02.2025 without any justifiable reason - The Court held that the petitioner is entitled to interest on the delayed payment at the rate of 6% per annum from 01.07.2018 till the date of actual payment, to be paid within eight weeks - The Court also directed the respondent to pay the difference of retirement dues, if any, within the same period (Paras 4-6).
Issue of Consideration
Whether the petitioner is entitled to interest on the delayed payment of annual increment which was due on 01.07.2018 but paid on 20.02.2025.
Final Decision
The petition is partly allowed. The respondent is directed to pay interest at the rate of 6% per annum on the amount of Rs.1,63,282/- from 01.07.2018 till the date of payment on 20.02.2025, within eight weeks. The respondent shall also calculate and pay the difference of retirement dues, if any, within the same period. Rule made absolute to the aforesaid extent. No order as to costs.
Law Points
- Delayed payment of salary increment entitles employee to interest
- Articles 14
- 21
- 226 of Constitution of India
