S.Chandrasekaran v. The Government Of Tamilnadu

IN THE HIGH COURT OF JUDICATURE AT MADRAS

DATED: 17.09.2021

CORAM

THE HONOURABLE MR. JUSTICE S. VAIDYANATHAN AND THE HONOURABLE MR. JUSTICE A.A. NAKKIRAN W.A. No. 2024 of 2021 S. Chandrasekaran ..Appellant/Petitioner Vs.

1.The Government of Tamil Nadu rep. by Secretary to Government, Public Works Department, Fort St. George, Chennai - 600 009.

2.The Engineer Incharge & Chief Engineer (General), Tamil Nadu Electricity Board, Public Works Department, Chepauk, Chennai - 600 005.

3.The Accountant General ( A & D), Tamil Nadu, Chennai Teynampet, Chennai.

..Respondents/ Respondents Prayer:

Writ Appeal as against the order dated 01.02.2021 passed in W.P. No. 3757 of 2014.

Prayer in W.P. No. 3757 of 2014:

Writ Petition filed under Article 226 of the Constitution of India, directing the respondents to pay interest at the rate of 12% p.a. from 01.01.2007 till date for the belated payment of Death-cum-Retirement Gratuity (DCRG) pension Commutation, pension arrears, subsistence allowance, special provident fund, encashment of earned leave and encashment of unearned leave within a reasonable time.

For Appellant ::

Mr.S. Sethuraman For Respondents ::

Mr.K.V. Sajeev Kumar, Govt. Counsel

J U D G M E N T

(Judgment of the Court was delivered by S. VAIDYANATHAN,J.) The writ appeal is filed questioning the order dated 01.02.2021 in W.P. No. 3757 of 2014.

2. The writ petition was filed by the appellant herein seeking interest @ 12% per annum on the belated payment of Death cum Retirement Gratuity (DCRG), pension commutation, pension arrears, subsistence allowance, special provident fund, encashment of earned leave and encashment of unearned leave. A detailed counter was filed by the 2nd and 3rd respondents herein stating that the writ petitioner had been in receipt of 8% interest for the belated payment of retirement benefits and recording the same, the writ petition was closed. Challenging the same, the present writ appeal has been filed.

3. According to the appellant, he is entitled to get interest @ 12% per annum from 01.01.2007 on death cum retirement gratuity, pension commutation, pension arrears, subsistence allowance, Special Provident Fund, encashment of earned leave and encashment of unearned leave within a reasonable time as there is a delay in payment of the benefits mentioned supra. According to the appellant, when there is a delay in payment of these benefits and that the appellant/writ petitioner was placed under suspension on 29.12.2006 which was revoked on 15.10.2012 after the charges framed against him were dropped and he was allowed to retire from service on attaining the age of superannuation on 31.12.2006 A.N. The appellant would further submit that terminal benefits apart from subsistence allowance due to him needs to be settled together with interest @ 12% per annum.

4. Per contra, the respondents would contend that vide G.O.Ms. No. 517 Finance (Pension) Department dated 12.06.1987, the terminal benefits have been settled together with interest @ 8% per annum and interest for the delayed payment of gratuity shall be as per the rate of interest applicable to General Provident Fund deposits from time to time and not at 12% per annum perpetually as contended by the appellant. Further, the question of sanction of terminal benefits to a Government Servant, who is not allowed to retire due to the pendency of the disciplinary proceedings against him arises only from the date of exoneration of charges and he cannot claim interest for every terminal benefit from the date of his presumptive retirement. According to the respondents, taking note of the said G.O. and the averments in the counter that the entire amount has already been paid to him, the learned Judge has rightly closed the writ petition and therefore, the writ appeal has to be dismissed.

5. The appellant, in reply would contend that a similarly placed employee was granted interest @ 12% per annum on retirement benefits vide G.O. NO. 120 Public Works (F1) Department dated 08.04.2013 and that there cannot be any discrimination in respect of the appellant. Even assuming for the sake of argument that G.O. Ms. No. 517 Finance (Pension) Department dated 12.06.1987, is not questioned, as there has been a delay in settlement of terminal benefits beyond one year, the respondents ought to have extended the benefit of 10% interest per annum on the benefits mentioned supra.

6. Heard both parties.

7. It is not in dispute that the appellant was suspended on 29.12.2006 and charge sheeted, and on culmination of the enquiry proceedings, as the charges were not proved, he was exonerated and allowed to retire and that he is entitled to all the terminal benefits, which have been paid. However, in terms of G.O. Ms. No. 517 Finance (Pension) Department dated 12.06.1987, the Government has awarded interest @ 8% per annum. Admittedly, there is a delay in payment of terminal benefits beyond one year.

That being the case, eventhough the said Government Order has not been questioned, with regard to revision of payment of interest @ 12%, the Government ought to have extended 10% interest on all the benefits due to the employee and that in the present case on hand, the appellant has been paid only 8% interest on certain terminal benefits and not in its entirety. Hence, this Court is of the view that the appellant would be entitled to interest @ 10% per annum as there has been a delay in payment/settlement of terminal benefits beyond one year in terms of G.O.

and the difference in interest on Death cum Retirement Gratuity and other benefits apart from granting interest @ 10% per annum on belated payment of subsistence allowance, encashment of earned leave and encashment of unearned leave shall be paid within a period of 3 months from the date of receipt of a copy of this order. The writ appeal is disposed of accordingly. No costs.

Sd/- Assistant Registrar(CCC) //True Copy// Sub Assistant Registrar nv

To 1.The Secretary to Government, Public Works Department, Fort St. George, Chennai - 600 009.

2.The Engineer Incharge & Chief Engineer (General), Tamil Nadu Electricity Board, Public Works Department, Chepauk, Chennai - 600 005.

3.The Accountant General ( A & D), Tamil Nadu, Chennai Teynampet, Chennai.

+1cc to Mr.S.Sethuraman, Advocate Sr No.47395 +1cc to the Government Pleader Sr No.48235 W.A. No. 2024 of 2021 SJ (CO) PR (10/11/2021)