Case Note & Summary
The petitioner, Dr. Kachhiapatel Anantdevesh Jashvantlal, retired from service on 31-08-2019. Despite retirement, he was not paid his pension and other retirement benefits for more than 10 months. He filed a petition under Article 226 of the Constitution of India before the Gujarat High Court seeking directions to the State of Gujarat and other respondents to release his pension and retirement benefits with interest at 18% per annum from the date of retirement, and to issue a No Departmental Inquiry/No Event Certificate under Rule 139(2) of the GCS (Pension) Rules, 2002. During the pendency of the petition, in September 2020, the respondents released all retirement benefits to the petitioner. The petitioner's counsel, Mr. K.B. Pujara, submitted that despite the release, the petitioner is entitled to interest for the delayed payment. The respondents' counsel, Ms. Dhruti Pandya, argued that the delay was due to administrative reasons. The court considered the submissions and held that pension is a right and not a bounty, and any delay in payment without justification entitles the retiree to interest. The court directed the respondents to pay interest at the rate of 6% per annum on the delayed payment of retirement benefits from the date of retirement (31-08-2019) till the date of actual payment (September 2020). The court also directed the respondents to ensure compliance with Rule 139(2) of the GCS (Pension) Rules, 2002 regarding the issuance of the No Departmental Inquiry/No Event Certificate. The petition was disposed of accordingly.
Headnote
A) Service Law - Pension and Retirement Benefits - Delay in Payment - Interest - The petitioner retired on 31-08-2019 but was not paid pension and other retirement benefits for more than 10 months. During the pendency of the petition, all benefits were released in September 2020. The court held that the petitioner is entitled to interest at the rate of 6% per annum on the delayed payment of retirement benefits from the date of retirement till the date of actual payment, as the delay was not justified. (Paras 1-6) B) Service Law - No Departmental Inquiry/No Event Certificate - Rule 139(2) of GCS (Pension) Rules, 2002 - The petitioner sought a direction to the respondents to issue the certificate under Rule 139(2) in Form-22. The court noted that since all benefits have been released, the certificate must have been issued. However, the court directed the respondents to ensure compliance with the rule and pay interest for the delay. (Paras 2-6)
Issue of Consideration
Whether the petitioner is entitled to pension and other retirement benefits with interest for the period of delay from the date of retirement till actual payment, and whether the respondents are liable to issue the No Departmental Inquiry/No Event Certificate under Rule 139(2) of the GCS (Pension) Rules, 2002.
Final Decision
The court directed the respondents to pay interest at the rate of 6% per annum on the delayed payment of retirement benefits from the date of retirement (31-08-2019) till the date of actual payment (September 2020). The respondents were also directed to ensure compliance with Rule 139(2) of the GCS (Pension) Rules, 2002 regarding issuance of No Departmental Inquiry/No Event Certificate. The petition was disposed of.
Law Points
- Pension is a right
- not a bounty
- delay in payment of pension and retirement benefits entitles the retiree to interest
- Rule 139(2) of GCS (Pension) Rules
- 2002 requires issuance of No Departmental Inquiry/No Event Certificate
- Article 226 of Constitution of India can be invoked for enforcement of fundamental rights.
