State of Jharkhand v. Laxmi Devi, wife of Late Har Govind Ram
2018-08-14
ANIRUDDHA BOSE, D.N.PATEL
body2018
DigiLaw.ai
JUDGMENT : 1. This Interlocutory Application has been preferred for condoning the delay of 191 days in preferring the instant appeal. 2. Considering the submissions made on behalf of the appellants and having gone through the grounds mentioned in the Interlocutory Application, the delay of 191 days in preferring the appeal is hereby, condoned. 3. This Interlocutory Application stands disposed of. L.P.A. No. 516 of 2017 1. Appellants are State of Jharkhand assailing the decision of the learned First Court by which the respondent has been directed to be paid interest at the rate of 12% in respect of delayed disbursal of retiral dues of her deceased husband. In the writ petition, out of which the appeal originates, the respondent-writ petitioner had twin set of prayers; first related to compassionate appointment which has been rejected by the learned First Court. The second related to payment of interest on account of delay in release of retiral dues under the headings of pension, gratuity, leave encashment and provident fund. The learned First Court directed 12% interest to be paid. Learned counsel for the appellants argues that the said rate of interest is excessive. 2. We have considered the rival claims. 3. Learned counsel for the respondent has referred to a judgment of the Hon’ble Supreme Court in the case of D.D. Tewari Vs. Uttar Haryana Bijli Vitran Nigam Limited and others reported in (2014) 8 SCC 894 . It has been held and directed at paragraph nos. 6, 7 and 8 of the report:- “6. It is an undisputed fact that the appellant retired from service on attaining the age of superannuation on 31-10-2006 and the order of the learned Single Judge after adverting to the relevant facts and the legal position has given a direction to the respondent employer to pay the erroneously withheld pensionary benefits and the gratuity amount to the legal representatives of the deceased employee without awarding interest for which the appellant is legally entitled, therefore, this Court has to exercise its appellate jurisdiction as there is a miscarriage of justice in denying the interest to be paid or payable by the employer from the date of the entitlement of the deceased employee till the date of payment as per the aforesaid legal principle laid down by this Court in the judgment referred to supra.
We have to award interest at the rate of 9% per annum both on the amount of pension due and the gratuity amount which are to be paid by the respondent. 7. It is needless to mention that the respondents have erroneously withheld payment of gratuity amount for which the appellants herein are entitled in law for payment of penal amount on the delayed payment of gratuity under the provisions of the the Payment of Gratuity Act, 1972. Having regard to the facts and circumstances of the case, we do not propose to do that in the case in hand. 8. For the reasons stated above, we award interest at the rate of 9% on the delayed payment of pension and gratuity amount from the date of entitlement till the date of the actual payment. If this amount is not paid within six weeks from the date of receipt of a copy of this order, the same shall carry interest at the rate of 18% 3. per annum from the date the amount falls due to the deceased employee. With the above directions, this appeal is allowed.” 4. In our opinion, the rate of interest stipulated in the aforesaid decision of the Hon’ble Supreme Court would be equitable so far as the case of the respondent-writ petitioner is concerned. 5. We accordingly, modify the order of the learned First Court and direct that the State of Jharkhand shall pay interest at the rate of 9% instead of 12%. 6. The appeal stands disposed of accordingly. 7. Connected application shall also stands disposed of, as we have disposed of the main appeal. There shall be no order as to costs. D.N. Patel, J./ I agree.