CAT asks Chandigarh to pay interest on delayed GPF payment to retired prison officer

Ramkrishan Upadhyay

Chandigarh, February 27

Interest on delayed payment on retiral dues can be claimed under Articles 14 and 16 of the Constitution of India even though there was no other rule to the effect.

While observing this, Chandigarh Bench of the Central Administrative Tribunal (CAT) has directed the Chandigarh Administration to pay interest on delayed payment of General Provident Fund (GPF) to a retired prison officer.

In an application filed before the Tribunal through advocate KB Sharma, Dalbir Singh, retired Deputy Superintendent of Police, Burail Jail (Factory), has challenged the order of the Inspector General of Prisons, Chandigarh and UT Administration dated June 29, 2020 vide which his application for the interest on delayed GPF payment was dismissed.

In the application, he said due to a criminal case he was placed under suspension on January 22, 2004, and subsequently dismissed from service on March 1, 2004. He said later he was acquitted in the criminal case vide judgment dated August 11, 2015 and that appeal against acquittal of the applicant is pending before the Punjab and Haryana High Court.

He said an amount of Rs 482,106 was lying in his GPF account at the time of dismissal that was not released by the respondents after his dismissal. He submits it is well settled law that the amount lying in the GPF belongs to the individual/employee and is property of the employee under Article 300A of the Constitution of India and not a bounty.

He said he made a representation to the respondents for release of GPF along with interest from the due date.

After hearing of the arguments, Ramesh Singh Thakur, member judicial, said it has been held in an earlier judgment passed by the Tribunal that interest on delayed payment on retiral dues can be claimed under Articles 14 and 16 of the Constitution of India even though there is no other rule to the effect.

The Tribunal said in view of this, respondents were directed to pay to the applicant the interest on the amount of GPF.