STATE OF PUNJAB Vs. YASHPAL GUPTA

JUDGEMENT

(1.) STATE of Punjab, has preferred this regular second appeal against the judgment and decree dated 25. 91995 passed by 1st Appellate Court dismissing the appeal of the appellant. Mr. Yashpal Gupta, Ac counts Officer from Medical College, Patiala was deputed to Pepsu Road Transport Corporation (PRTC), Patiala w. e. f. 17. 12. 1981. He was permanently absorbed in that Department and final order of absorption was passed on 25. 2. 1988. No demand certificate against him was issued by the concerned Department. On his retirement, his case was forwarded for grant of pension and gratuity complete in all respects on 16. 10. 1987. It was forwarded By appellant No. 3 in August, 1988 after 20 months of the date of his retirement. Gratuity amount was ordered to be paid vide letter dated 20. 9. 1988 i. e. nearly 31 months after the date of retirement. Even this amount was disbursed on 6. 12. 1988. On these facts, the respondent herein claimed interest on the amount of gratuity from 17. 3. 1987 to 5. 12. 1988 at the rate of 12% per annum. This claim of the plaintiff was contested by the appellants. The objections with regard to maintainability of the suit and the suit being barred by time were taken. It was further averred that no amount was due and payable to the respondent on account of interest towards delayed payments or on any other amount.

(2.) ISSUES were framed by the learned trial Court and after the parties led then evidence, the learned trial Court decreed the suit of the plaintiff partly holding as under:

(3.) IT is the judgment and decree of 1st appeal which has been assailed in this Regular Second Appeal. When Regular Second Appeal came up for motion hearing, the claim only with regard to rate of interest was pressed on behalf of the State. The Court on 28. 5. 1996 passed the following order : "the learned counsel for the appellant submits that the respondent could have been awarded pendente lite and future interest only at the rate of 6% Under Section 34 C. P. C. whereas in the present case he has been granted interest at the rate of 12%. Notice of motion to the respondent for 26. 8. 1996. "