UNION OF INDIA AND ORS. Vs. SURAJ BHAN

JUDGEMENT

(1.) Union of India impugns order dated 18th February, 2014, passed by the Central Administrative Tribunal, Principal Bench (Tribunal, for short) in OA No. 1821 of 2013, directing them to pay interest on the commuted value of pension at the same rate as applicable to the General Provident Fund. The order also directs payment of interest on leave encashment. However, counsel for the Union of India submits that this part of the direction is not under challenge and interest towards late payment of leave encashment stands paid.

(2.) Undisputed facts in brief may be noticed. The respondent -Suraj Bhan superannuated on 31st August, 2009 from the post of Assistant Post Master (LSG), Delhi Circle. On retirement, the respondent was paid provisional pension as he was facing disciplinary proceeding for major penalty, vide memo dated 2nd June, 2008. This had prompted the respondent to file OA No. 539/2011 for there was delay in concluding the departmental proceedings. By order dated 13th May, 2011, the authorities were directed to consider the Enquiry Officer's report, and that the competent authority would decide the disciplinary case within four months from the date of receipt of the order dated 13th May, 2011.

(3.) By Presidential Order No.C -14016/74/2010 -VP dated 29th September, 2011, disciplinary proceedings were dropped and thereafter, commuted value of pension was paid to the respondent on 10th February, 2012. The impugned order passed by the Tribunal directs that interest should be paid on the computed value of the pension which would be computed after expiry of three months from the date the said dues became payable i.e. three months after superannuation of respondent on 31st August, 2009.