Retirement dues: Interest on delayed payment of retirement dues – Delay in payment of retirement dues to the Appellant-Assistant Professor working in the respondent- college despite various correspondence and representation – During the pendency of writ petition, retirement dues were settled – Claim for interest on delayed payment – Held: As there was delay in making the payment of retirement benefits and settling the dues for which the appellant was not at all responsible, he is entitled to the interest on the delayed payment – Delay/latches.
Allowing the appeal, the Court
HELD: The Division Bench of the High Court had observed in the impugned judgment and order that the appellant was entitled to the interest on the delayed payment. However, there was an inter se dispute between the Secretary, Management and the Government as to who was responsible for the delay in making the payment to the appellant and therefore, he was denied the interest on delayed payment though entitled to. As such pursuant to the interim order, the Government did conduct an enquiry and fastened the liability on the college and observed that the former Secretary was responsible for the delay in disbursal of the terminal benefits to the original writ petitioner. In that view of the matter, subject to the further final order that may be passed by the Government, the College/Management is first liable to pay the interest on the delayed payment of retirement dues subject to the final decision, which may be taken by the Government, after hearing the Management and the former Secretary. However, because of the inter se dispute between the Management, Secretary and the Government on who is responsible for the delay in making the payment and/or settling the dues, the retired employee should not be made to suffer for no fault of his. [Para 4][752-C-F]
As published in the Supreme Court Reports, Supreme Court of India. Text from the Indian Supreme Court Judgments open data set (Dattam Labs), CC BY 4.0.
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