Compulsorily retired in 2006, judge to get 9% interest on delayed benefits

A judge has secured justice six years after the setting aside of his compulsory retirement order.

The Punjab and Haryana High Court has not only directed the state of Punjab to pay 9 per cent interest on the delayed release of his pensionary benefits, but also quashed a communication seeking interest recovery from the pension benefits previously drawn.

No lapse on part of petitioner

There is no lapse on the part of the petitioner throughout that he should be made liable to pay the interest. Rather, as per the language of Rule 9.13, the delay in payment was due to administrative lapse of the Finance Department and Department of Home Affairs and Justice. High Court

Taking up the petition filed against the state of Punjab and other respondents by judicial officer Naginderjit Singh, the Division Bench of Justice Sureshwar Thakur and Justice Sudeepti Sharma observed that the petitioner was initially appointed to the Punjab Civil Services (Judicial Branch) in 1983 and promoted to the Punjab Superior Judicial Services in 1999. He was compulsorily retired from service on June 8, 2006.

The court noted that his challenge to the compulsory retirement order was allowed by the Punjab and Haryana High Court on August 8, 2018. The state’s appeal against this decision was dismissed by the Supreme Court on May 7, 2019. Following this, the Full Court of the Punjab and Haryana High Court resolved on July 26, 2019, that his compulsory retirement be withdrawn, deeming him reinstated from June 8, 2006, and awarding him 50 per cent of his salary from the date of compulsory retirement until his superannuation on May 31, 2017, along with full pensionary benefits.

However, the respondents delayed the payment of pensionary benefits, despite the orders in the petitioner’s favour. The court observed: “There is no lapse on the part of the petitioner throughout that he should be made liable to pay the interest. Rather, as per the language of Rule 9.13, the delay in payment was due to administrative lapse of respondent-Finance Department and respondent-Department of Home Affairs and Justice.”

The Bench referred to Rule 9.13 of the Punjab Civil Services Rules, Vol. II, which mandates that gratuity must be paid within three months from the date of retirement, and any delay beyond that entitles the government employee to interest on the delayed payment. The court further noted that even after the Supreme Court dismissed the state’s appeal, the respondents failed to comply with the judgment of August 8, 2018. This amounted to contempt of court.

“The respondents did not comply with the judgment dated August 8, 2018, which was affirmed by the Supreme Court on May 7, 2019, which rather amounted to contempt of court. This further amounted to harassment of the petitioner at the hands of the respondents due to unnecessary procedure/departmental formalities,” the court added.

Before parting with the order, the court directed the state of Punjab to pay 9 per cent interest on the delayed payment of pensionary benefits and quashed the letter dated March 1, 2024, seeking interest recovery from the petitioner. The writ petition was allowed, and the impugned communication was set aside.