Research › Search › Judgment

J&K High Court · body

2009 DIGILAW 435 (JK)

Om Parkash v. State

2009-08-28

HAKIM IMTIYAZ HUSSAIN

body2009
1. A common question arises for determination in all the above mentioned writ petitions i.e., whether an employee is entitled to interest on the G.P. fund amount at its credit on superannuation beyond the period of six months. 2. Petitioners state that though their GP fund amount has been paid to them along with interest but the interest on their retirement has been restricted to six months only and such an interest has not been paid to them beyond six months of their retirement till the date of final realization of the amount. 3. The facts are not in dispute. The respondents have admitted that the petitioners have retired from service, that they were regular GP fund subscribers and the amount at the time of their superannuation has been paid to them along with interest upto six months from the date of their retirement. Beyond six months till the date of realization, interest has not been calculated or paid to the petitioners. 4. The petitioners are aggrieved of the decision of the respondents in declining interest on their GP fund amount beyond period of six months till the date of realization. 5. Heard. I have considered the matter. 6. The learned counsels for the petitioners have relying on the G.P Fund Rules submitted that under these rules, the petitioners are entitled to interest as is prescribed by the Govt. from time to time on the GP fund amount which became due to them at the time of their superannuation. The petitioners were entitled to interest on the amount till its final realization. The learned counsels further submit that it was due to the lapse on the part of the respondents that they did not process the cases which caused delay in the final sanction and payment of the amount to them. The petitioners cannot be made to suffer for the default and inaction of the respondents. 7. Per contra, learned counsel for the respondents has referred to Rule 20 of the Rules and submitted that a subscriber was required to submit his claim for the GP fund amount within six months of his retirement as sums remaining unclaimed for a period exceeding six months are transferred to deposits at the end of each year and are dealt with under the ordinary rules relating to deposits, which do not attract interest. 8. 8. The learned counsel would further submit that the petitioners did not submit their GP fund claims within time as such the processing of their claims and final realization got delayed. This delay is not attributable to the respondents but was caused due to the lapses on the part of petitioners themselves. In view of the provisions of the rules, the petitioners are not in these circumstances entitled to interest on the amount beyond the period of six months of their superannuation. 9. In reply to the submissions of learned counsel for the respondents, the petitioners counsels have referred to SRO 254 of 2nd September 2008, which has directed amendment in Rule 20 and has substituted figure `six months by word and figure `2 years, which would mean that a subscribe can on his retirement submit the claim within two years and was entitled to the interest till the amount was paid to him. 10. On consideration of the matter, I find due force in the submissions of the learned counsel for the respondents. 11. Note 1 to Rule 7 of the G.P Fund Rules provides as under: "Before the amount at an Officers credit in the fund is finally paid under rules, his account shall be credited with interest upto the end of the month preceding that in which the payment is made." 12. Rule 20 of the said Rules reads as under: "Unclaimed deposits.-Sums remaining unclaimed for a period exceeding 6 months should be transferred to deposits at the end of each year, and be dealt with under the ordinary rules relating to "deposits". 13. An employee has to claim the GP fund amount due to him within six months from the date of his superannuation. Note 1 to Rule 7 applies to such cases where the amount has been claimed within six months but final withdrawal authority could not be issued in favour of an employee due to procedural delay or factors, which cannot be directly attributed to the employee. In such cases, the interest is to be calculated on such amount till final withdrawal. However, where the delay in the final withdrawal is attributed directly to the employee i.e., the employee does not claim the sum within six months of his superannuation, such GP fund amount stands transferred to deposits, which do not attract interest. 14. In such cases, the interest is to be calculated on such amount till final withdrawal. However, where the delay in the final withdrawal is attributed directly to the employee i.e., the employee does not claim the sum within six months of his superannuation, such GP fund amount stands transferred to deposits, which do not attract interest. 14. The rate of interest on the GP fund deposits is always higher when compared to the rate of interest prevalent in commercial banks. The employees may in view of high rate of interest take undue monetary benefit and cause loss to the Govt. exchequer by not claiming/filing an application for final refund withdrawal of the amount. To prevent such a situation, the rules have fixed a period of six months within which an employee must make a formal application for withdrawal of the amount. He is entitled to interest on the amount for the said period of six months but if he fails to make a claim, he cannot ask for any interest on the amount beyond the period of six months of his superannuation. SRO 254 of 2008 would not apply in the present case as the same has been issued on 2nd September 2008 and the period of two years mentioned would be applicable in cases of those employees who retire after 2nd September 2008. The petitioners have retired from service before the said date. 15. The respondents have in reply to the present petitions stated that the petitioners in all these cases have made their claim to the GP fund after the period of six months as such the respondents have restricted calculation and payment of interest on their G.P Fund amount to six months only. None of the petitioners has filed any reply to the stand taken by the respondents nor has any learned counsel stated during arguments that such a claim was made within six months. 16. In view of this rule position, I do not find the petitioners are entitled to any relief at all. All these petitions are, therefore dismissed along with connected CMPs. Order accordingly.