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2001 DIGILAW 199 (KAR)

K. RAMACHAR v. STATE OF KARNATAKA

2001-02-28

MOHAMED ANWAR

body2001
MOHAMED ANWAR, J. ( 1 ) HEARD the arguments of learned Counsel on both sides. ( 2 ) THE undisputed facts are that the petitioner here in retired on 30. 4. 1997 on attaining the age of superannuation as a Manager inthe Establishment of Respondent No. 3- City Municipal Council, bhadravathi, vide Annexure-A, letter dated 30. 4. 1997 of Respondent no. 3. When he so retired, a Disciplinary Enquiry by the Assistant commissioner, Shimoga Sub-Division, Shimoga, was pending against him on certain alleged charges of mis-conduct, as per Rule 11 (2) read with Rule 11 (5) (c) of the Karnataka Civil Services (Classification, control and appeals) Rules, 1957. On conclusion of the enquiry, the said Enquiry Officer submitted his enquiry report dated 11. 03. 1998 to Respondent No. 2 - Disciplinary Authority, holding that charges levelled against petitioner were not proved. That report was accepted by Respondent No. 2 vide Annexure-C dated 27. 03. 1998. Because of pendency of the said Disciplinary Proceeding, the pensionary and other related monetary benefits payable to the petitioner on his retirement were not settled by Respondent No. 4 Assistant Controller, local Audit Circle, Shimoga, who was the competent authority for the purpose. On the other hand, a letter dated 10. 12. 1998 Annexure- b was addressed by him to Respondent No. 3-Commissioner of city Municipal Council, Bhadravathi, stating that the provisional pension of Rs. 1,017/- as per Rule 214 (A) of Karnataka Civil Services rules was sanctioned to the petitioner and further stating that "if the departmental enquiry is completed and final order is passed, and relevant documents are sent, the commutation pension and D. C. R. G. will be released. ( 3 ) AS indicated by order Annexure-C, dated 27. 03. 1998 of respondent No. 2-Disciplinary Authority, the petitioner was exonerated of the charges levelled, and in respect of which the said disciplinary proceeding was initiated against him. Therefore, the petitioner has approached this Court seeking the following reliefs :-I) To issue a writ of mandamus directing the respondents 2, 3, 4 to give 12% interest on the pensionary benefits such as dcrg, Commuted Value of Pension and Family Benefit Fund as per the Government Order FD. SPL199 PEN. 93 dated 13. 09. 1994 (Annexure-J) immediately in the interest of justice and equity in the eye of law. SPL199 PEN. 93 dated 13. 09. 1994 (Annexure-J) immediately in the interest of justice and equity in the eye of law. ii) To issue directions to the 3rd respondent - Municipal commissioner, City Municipal Council, Bhadravathi to settle the family Benefit Fund of the petitioner immediately with its interest at 12%, in the interest of justice and equity in the eye of law. iii) Pass such other order/s as this Hon'ble Court deems fit in the circumstances of the case in the interest of justice and equity in the eye of law. ( 4 ) FOR relief No. (i) quoted above, petitioner relies on the Government Order No. FD (SPL) 199 Pen. 93, Bangalore, dated 13. 09. 1994, vide Annexure-A. This order of the Government had been issued in the matter of payment of interest on belated payment of pension, DCRG, Commuted Value of Pension and Leave encashment. It states that "after considering all aspects of the matter and, in supercession of the Government Orders dated 14. 8. 1985 and 4. 6. 19s6 read at (1) and (2) above, Government have accorded sanction for payment of interest @ 12% p. a. , in respect of the following retirement/death benefits accruing to a Government Servant who retires from service or to his family in the event of his death either while in service or after retirement. . . " The retirement/death benefits on which interest @ 12% p. a. is made payable are shown in a tabular form given below this quoted portion of the Government order. The entries in Column "a' of this table are relevant for our purpose. They indicate that in case of a Government Servant who retires from service, the interest in terms of above stated Government order is payable to him on the amounts of:i) Service Gratuity or pension; ii) Terminal Gratuity or Retirement Gratuity; iii) Encashment of Earned Leave. ( 5 ) FURTHER Paragraph No. 2 in the said Government Order at Annexuro- I provides for the time limit within which the claims mentioned in the said tabular form are required to be settled and for computation of interest on delayed payments if any. ( 5 ) FURTHER Paragraph No. 2 in the said Government Order at Annexuro- I provides for the time limit within which the claims mentioned in the said tabular form are required to be settled and for computation of interest on delayed payments if any. Clause (b) of this Paragraph-2 is material for this case which states that "where on the conclusion of the Enquiry Proceeding either Departmental or judicial deemed to have been instituted under Rule 214 of Karnataka civil Services Rules, if the Government Servant is fulty exonerated, the interest may be paid from the commencement of the 4th month from the last date of the month of retirement up to the end of the month preceding the month of payment. " In the instant case, as already stared, the petitioner retired from service on 30. 4. 1997 His pension and other retrial monetary benefits payable to him were not settled on account of the said Disciplinary Proceeding against him. Finally, he has been fully exonerated of the charges by the disciplinary Authority by its order dated 27. 3. 1998, vide Annexure- c. His pension including the commuted value of pension payable to him was settled by order dated 2. 6. 1998 vide Annexure-E. The d. C. R. G. account was also settled under order dated 2. 6. 1998 vide annexure-D and order dated 8. 10. 1998 at Annexure-F of R4. Therefore, he is entitled to the benefit of 12% interest on the belated payment of pension, retirements gratuity and leave encashment in terms of the aforequoted provision payable from the commencement of the 4th month from the last date of the retirement up to the end of the month preceding the payment. But he is not entitled to interest at 12% p. a. , on the Family Benefit Fund as claimed by htm since the Government Order at Annexure-J does not provide for interest on the item of Family Benefit Fund. Therefore, the prayer for the first relief in the petition is entitled to be allowed in part. ( 6 ) FOR the reasons aforestated above, the petition is partly allowed. The petitioner is declared entitled to the interest at 12% from the date 01. 08. Therefore, the prayer for the first relief in the petition is entitled to be allowed in part. ( 6 ) FOR the reasons aforestated above, the petition is partly allowed. The petitioner is declared entitled to the interest at 12% from the date 01. 08. 1997 on the retiral benefits of pension, retirement gratuity amount and the amount of earned leave encashment till the date/dates of actual payment thereof, in terms of the Government order No. FD (SPL) 199 PEN 93, Bangalore, dated 01. 03. 1994 vide annexure J. Respondents 2, 3 and 4 shall arrange for payment of the said interest amount to petitioner without further delay, failing which they would be personally held responsible to pay the same. Respondent No. 3 is further directed to expedite the action to settle the Family Benefit Fund payable to the petitioner according to the relevant provisions without unreasonable delay, preferably within two months from the date of communication of this order. This order shall be forth with communicated to Respondent No. 3. --- *** --- .