MD.ZOBAIR Vs. BIHAR STATE ELECTRICITY BOARD

JUDGEMENT

(1.) THE Government in a Circular has provided that five percent interest be paid in case there is delay in releasing pension, which includes gratuity. The State Electricity Board, being a Statutory Authority, is not bound by the said decision of the Government. The Board has also not taken any such decision and at the same time has also not adopted the said decision of the Government. In such view of the matter, there cannot be any concept of statutory interest for delay in payment of release of gratuity by the Board. However, having regard to the fact that a sum due and payable on a given date has not been paid on such date the Court is competent to compensate the person entitled to receive such dues and such compensation is always reflected in the form of interest. Having regard to the fact that the Government itself has decided five per cent interest, the court cannot reduce such interest less than five per cent and, accordingly, directs payment of Equivalent Citation:2007 -PLJR -1 -31 interest for the delay in releasing gratuity at the rate of five per cent per annum. There is no dispute that Group Saving Scheme, in respect whereof some money was payable to the petitioner, carried interest at the rate of ten per cent per annum. There has been some delay in releasing the amount payable to the petitioner on account of Group Saving Scheme but interest for the delay has not been paid to the petitioner. The petitioner, in law, is entitled to the same.

(2.) LET such interest at such statutory rate be paid to the petitioner for the delay in releasing of the amount due to him on account of Group Saving Scheme.

(3.) THIS disposes of the writ petition.