MOHAN AWASTHI Vs. STATE OF M.P.

JUDGEMENT

(1.) THE claim made in the present writ petition by the petitioner is a direction to the respondents to pay interest on the retiral dues such as gratuity and pension, which was paid after a considerable delay. The original petitioner came before this Court ventilating his grievance that despite the orders passed by the authorities, in all matters, the payment of Death -cum -Retirement Gratuity (herein after referred to as 'DCRG') and arrears of pension amounting to Rs.1,66,530/ - was not made to him within time. After a considerable long delay, the said amount was paid to him. According to the original petitioner, the respondents were liable to pay the interest on the said amount, which was illegally withheld from the month of January, 2008. During the pendency of the petition, the original petitioner has died and is substituted by his widow.

(2.) CONTESTING the claim made by the original petitioner, it is contended by the respondents that on 31.07.2004 the original petitioner has retired from service. A departmental enquiry was pending against the original petitioner in which ultimately penalty of withholding of 10% pension for a period of 10 years was imposed on him and the recovery was to be made from the DCRG. The original petitioner challenged the order of punishment before this Court in W.P. No.3112/2008 (S), which came to be decided on 11.08.2009. The writ petition was allowed, the order of punishment was quashed with a direction to pay the arrears of such retiral dues to the original petitioner within a period of three months but no interest was ordered by this Court. The order passed in the case of original petitioner by this Court was based on a decision which has been overruled by the Full Bench of this Court subsequently and, therefore, amount of DCRG was not paid to the original petitioner. Now since the amount has already been paid to the original petitioner, on authorization, the claim made with respect to the interest is misconceived and not sustainable. It is, thus, contended that the petition is liable to be dismissed.

(3.) THE State Government in Finance Department has issued a circular on 27th January, 2007 whereby it has been said that in case there is delay caused in payment of amount of DCRG, an interest at the rate of 8% is required to be paid. Earlier the rate of interest was 12% which was reduced to 8%. It is seen from the pleadings in the writ petition, which have not been disputed, that the order of penalty was issued on 24.12.2007 that means after the order passed by the Finance Department reducing the rate of interest. This being so, it would be necessary to direct the respondents to make payment of interest on the amount of DCRG to the petitioner with effect from 1st January, 2008 till the date of actual payment of the said amount.