Financial crisis no ground for delayed pensionary benefits: High Court

Tribune News Service

Saurabh Malik

Chandigarh, March 9

In a significant judgment, the Punjab and Haryana High Court has made it clear that the ability of a retired employee to maintain dignity and quality of life is intricately linked to timely disbursal of retirement benefits.

Justice Namit Kumar of the high court also made it clear that the failure of the authorities concerned to release the same in a timely manner would not only affect the financial security of the retired employees, but also infringe upon their fundamental rights guaranteed under Article 21 of the Constitution on right to life and personal liberty.

Justice Kumar also ruled that a state or its instrumentalities could not decline or withhold the release of pensionary benefits to a retired employee on the ground of financial instability or crisis. The assertion came in a case where a retired employee’s plea for grant of interest following delayed release of pensionary benefits was opposed by the counsel for the state and other respondents.

Among other things, the counsel argued that Tapa Municipal Council was already ‘under financial crisis’. As such, the grant of interest will put additional burden upon the council. Therefore, the petitioner’s claim for the grant of interest may be declined.

Justice Kumar also observed that it was clear that there was no impediment in the release of pensionary benefits to the petitioner. Proceedings were not pending against the petitioner, entitling the respondents to withhold her pensionary benefits. The only reason given by the counsel against releasing the pensionary benefits was the council’s financial instability. Once financial instability was held to be no ground for withholding pensionary benefits, it could not be projected to justify inaction on the municipal council’s part for not releasing the pensionary benefits to the retired employees, Justice Kumar ruled.

Justice Kumar added that a Division Bench of the high court had already considered the issue before ruling that retirement benefits could not be declined or withheld on account of financial difficulty.

About The Author

Tribune News Service

The Tribune News Service brings you the latest news, analysis and insights from the region, India and around the world. Follow the Tribune News Service for a wide-ranging coverage of events as they unfold, with perspective and clarity.

Join Whatsapp Channel of The Tribune for latest updates.