Immediate Entitlement to Pension and Benefits Casts Duty on State: Punjab and Haryana High Court Directs Payment of Interest on Delayed Retiral Benefits

In a significant ruling, the High Court of Punjab and Haryana addressed the issue of delayed payment of retiral benefits, emphasizing the state's duty to ensure timely disbursement. Justice Namit Kumar, in the case of Jatinder Pal Singh Vs. Punjab State Power Corporation Limited, underscored the government's obligation to promptly release retirement benefits, including General Provident Fund (GPF) and gratuity, to its employees.

The petitioner, a retired Assistant Engineer, sought the issuance of a writ of certiorari for quashing an order denying interest on delayed payment of retiral benefits, alongside a writ of mandamus directing the respondents to release interest on delayed payment of GPF and gratuity. The core legal point revolved around the entitlement of a retired employee to interest on delayed retiral benefits.

Jatinder Pal Singh, the petitioner, faced delays in receiving his retiral benefits post-retirement in 2013. After serving a legal notice and filing a previous writ petition, the respondents directed to consider his claim, refused to pay interest on the delayed benefits, leading to the current petition. The respondents justified the delay citing the petitioner's late submission of necessary documents, including property details under Conduct Rules.

Justice Namit Kumar, after examining the arguments and precedents, observed that the delay in releasing gratuity and GPF payments was unjustified. Citing the A.S. Randhawa and J.S. Cheema cases, the Court noted that employees are entitled to interest on delayed payments when the delay is not justifiable. The Court found that there was no reasonable ground to withhold the gratuity payment post the conclusion of disciplinary proceedings against the petitioner.

The High Court partly allowed the writ petition. The Court directed the respondents to pay interest on the GPF amount from the date of retirement to the date of payment at the applicable GPF interest rate. Furthermore, the Court ordered the payment of 6% interest on delayed gratuity from the conclusion of disciplinary proceedings to the date of gratuity payment.

Date of Decision: 13.02.2024

Jatinder Pal Singh Vs. Punjab State Power Corporation Limited