MAHENDRABHAI P CHHATARARA Vs. ADMINISTRATIVE OFFICER

JUDGEMENT

(1.) Rule. Learned A.G.P. Mr.Rindani waives service of notice of rule for respondent No.1. Though notice has already been served to respondent No.2, it chose not to oppose the petition. Having regard to the facts of the case, the petition is taken-up for final disposal today.

(2.) The petitioner retired on 14.6.2008. He was not paid his P.F amount. However, ultimately, P.F amount came to be paid to him on 17.6.2010 vide order dated 16.6.2010. The petitioner's claim that now survives is only regarding interest. The respondent-authorities have paid interest on P.F amount to the petitioner upto 30.6.2010 at the rate of 8% per annum. The claim of the petitioner is that the petitioner would be entitled to interest on P.F amount at the rate of 12% per annum after a period of three months of his retirement. In support of his claim, the petitioner has relied on a Government Resolution dated 7.2.1987 bearing No. PFR-1087-93-CH, where it has been categorically stipulated by the Government to pay interest if the G.P amount is not paid within a period of three months from the date on which it became payable.

(3.) Apart from this, there is a decision of a coordinate Bench of this Court in Special Civil Application No. 2322/2009 and allied matters, dated 4.5.2009, where the relevant observations made in paragraphs 6 & 7 are as follows:- 6. Having heard the learned advocates appearing on behalf of the respective parties, it appears that the respective petitioners are denied the interest on the GPF for the first three months after the retirement i.e. after they are entitled to receive the GPF amount on misinterpretation and misreading of the Government instructions. The Government instruction relied upon by the respective respondents is to the effect that after three months the employee is entitled to receive the interest at the rate of 12% per annum on delayed payment of GPF. That does not mean that an employee is not entitled to receive the interest on the GPF for the first three months after retirement. On fare reading of the instructions it can be said that an employee is not entitled to receive penal interest at the rate of 12% on delayed payment for the first three months, however, an employee is entitled to receive regular interest on the GPF even for the first three months of their retirement. Thus, denying the interest for the first three months after the retirement and/or they are entitled to receive the GPF is absolutely illegal and arbitrary which deserves to be quashed and set aside.