GANGACHARAN DUBEY Vs. STATE OF M P

JUDGEMENT

(1.) MADHYA Pradesh State Administrative Tribunal by the impugned order found that the Joint Director of Education, Gwaiior, had directed for recovery of sum of Rs. 5,206.45 from the gratuity payable to the applicant following an audit directions in which some irregularities were detected regarding payment and purchases of the articles. The respondents directed such recovery without following the procedure as per law and without holding an enquiry against the applicant and as a result the order of recovery from the gratuity of the petitioner was quashed. However, with liberty to recover such amount by following a procedure as prescribed under the law and as per rules only.

(2.) LEARNED counsel of petitioner has submitted that the learned Tribunal while making order for refund of the aforesaid amount failed to make an order for allowing interest thereon. Reliance is placed on the Division Bench decision of this Court in the case of State of M.P. & others v. R.K. Joshi and others, reported in 2000 (1) MPLJ 467. Reference is being further made to Finance Department Memorandum dated 25.4.1984 as amended in 1994 which provides for payment of interest at the rate of 12% per annum in case if gratuity is not paid within six months from the date of retirement and further where such delay has been caused due to administrative reasons which is beyond control of the concerned Government servant.

(3.) THUS , unescapable conclusion is that the petitioner is entitled to interest on the recovered amount because no such recovery could have been made from the sum of gratuity payable to the petitioner. We accordingly allow this petition and direct that the petitioner is entitled to interest at the rate of 12% per annum from the date of expiry of six months from his retirement till the date of refund of the recovered amount as ordered by the Tribunal.