STATE OF PUNJAB Vs. NARINDER SINGH KALEKA

JUDGEMENT

(1.) Challenge in this appeal by the appellants-defendants is to the judgment and decree passed by the learned Additional District Judge, Patiala dtd. 24/11/2015, whereby the appeal preferred by the respondent-plaintiff against the judgment and decree passed by the Civil Judge (Junior Division), Patiala awarding interest @9% per annum w.e.f. 17/2/2015 has been modified to the extent of granting interest @9% per annum w.e.f. 1/6/2012 i.e. one month after the date of retirement of the respondent-plaintiff as the date of retirement was 30/4/2012.

(2.) It is the contention of the learned counsel for the appellants that the suit, which has been preferred by the respondent-plaintiff, has been decreed in his favour to the extent of grant of interest on delayed payment of gratuity from three months subsequent to the date of his acquittal by the trial Court which period has been reduced to one month subsequent to the date of his retirement which cannot sustain in the light of Rule 2.2 (c) (1) and Rule 6.16 AA (9) of the Punjab Civil Services Rules Volume-II. He contends that the interest, which has been granted to the respondent-plaintiff by the Lower Appellate Court being contrary to the statutory Rules cannot sustain and, therefore, deserves to be set aside.

(3.) On the other hand, learned counsel for the respondent-plaintiff contends that the respondent has rightly been granted interest after 30 days of his date of retirement as on acquittal, the respondent-plaintiff became entitled to the gratuity, which was wrongly withheld by the appellants by not releasing at the time of his retirement and, therefore, interest, as has been granted by the Lower Appellate Court, is in consonance with law. He contends that the judgment, as passed by the Lower Appellate Court, cannot be said to be not in accordance with law especially in the light of the judgment of this Court in Des Raj Bhagat vs. State of Punjab and others, 2016 (2) PLR 561, where this Court has held that where in an enquiry, which has been initiated against an employee, he has been exonerated, the employee would be entitled to interest from the date of his retirement. Reliance has also been placed upon a Division Bench judgment of this Court in The Financial Commissioner and Principal Secretary to Govt. of Haryana vs. Hasan Singh Kanwar, 2011 (2) SCT 157, where it has been held that the employee would be entitled to interest on delayed payment from the date it became due till the date of payment. He, thus, contends that the judgment passed by the Lower Appellate Court being in consonance with the judgments passed by this Court does not call for any interference.