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2024 DIGILAW 827 (MAD)

N. Soundaram v. Secretary to Government, Health and Family Welfare Department

2024-03-15

V.BHAVANI SUBBAROYAN

body2024
JUDGMENT : (Prayer: Writ Petition is filed under Article 226 of the Constitution of India, to issue a Writ of Certiorarified Mandamus, calling for the records relating to the Government Letter No.222/EZ2/2015 issued by the Secretary to Government, Health and Family Welfare Department dated 16.06.2017 in rejecting the claim of the petitioner for interest on the belated terminal benefits, and quash the same and direct the respondents to disburse the interest on belated payment of Commutation of Pension etc., as per the rulings of the Hon'ble Supreme Court and the Hon'ble High Court.) 1. This Writ Petition is filed challenging the impugned order passed by the 1st respondent in Letter No.222/EZ2/2015 dated 16.06.2017, for rejecting the claim of petitioner for interest on belated payment of terminal benefits. 2. The petitioner, who is a Medical Graduate, was appointed as Assistant Surgeon in Government Dispensary Ganapathypuram in Kanyakumari District on 20.12.1970. She worked in various places in the State of Tamilnadu and gained many promotions. She attained age of Superannuation on 31.05.2005, but she was not permitted to retire on the ground that disciplinary proceedings were pending against her for certain irregularities. As there was no progress in the disciplinary proceedings, the petitioner moved a writ petition in this Court in W.P.No.17307 of 2013 seeking a direction to the 1st respondent to pass final orders in the disciplinary proceedings. The said petition was allowed directing the 1st respondent to pass final orders in the disciplinary proceedings, on merits and in accordance with law, within a period of twelve weeks from the date of receipt of a copy of the order. Thereafter, the disciplinary action initiated under Rule 17(b) of TNCS (D&A) Rules, against the petitioner was dropped by G.O.(D).No.871 Health and Family Welfare (K1) Department, dated 20.08.2013. The same was communicated to the petitioner on 17.09.2013 in Ref.No.50139/SC1/1/2005-1. The terminal benefits of the petitioner were thereafter paid to her as per the particulars shown below:- S.No Name of the Benefits Amount Due Date Delay 1 Pension Rs.12,60,261/- 31.05.2005 9 years 2 Commutation Rs.3,45,180/- 31.05.2005 9 years 3 DCRG Rs.3,50,000/- 31.05.2005 10 years 4 Interest for belated payment of DCRG Rs.4,04,131/- 31.05.2005 11 years 5 SPF Rs.22,059/- 31.05.2005 10 years 6 EL Encashment Rs.2,91,301/- 31.05.2005 11 years 3. The grievance of the petitioner is that, In spite of the above Government Order dated 20.08.2013, the petitioner was sanctioned pension and disbursed her DCRG and other terminal benefits only on 15.11.2014, 07.05.2015 and 15.05.2015. There was a delay of 14 months from the date of permitting to retire orders was passed. Though DCRG and other terminal benefits are disbursed after the delay of more than 10 years, no interest was paid as per the statutory rules on the delay of payment of gratuity and commutation of pension. Hence, the petitioner gave a representation to the 1st respondent on 11.06.2015 claiming interest at the rate of 18% on the belated payment as per the Supreme Court Ruling and Pension Rules. As no orders were passed by the respondents on her representation, the petitioner approached this Court by filing a writ petition in W.P.No.22400 of 2015 seeking a direction to the respondents to dispose of her representation dated 11.06.2015. The said petition was allowed by this Court directing the 1st respondent to pass orders on the representation dated 11.06.2015 for interest on the belated settlement of terminal benefits in the light of decision of the Division Bench in State of Tamil Nadu, Represented by the Secretary to the Government - Vs - Deivasigamani ( 2009 (3) MLJ 1 ) within a period of 12 weeks from the date of receipt of a copy of the order.”. In spite of the above order, the 1st respondent has disbursed interest on belated payment only for Death-cum-Retirement-Gratuity and for terminal benefits like Commutation of Pension, Arrears of Pension and Special Provident Fund, no interest was paid by the respondents, and therefore, this Writ Petition is filed. 4. The 1st respondent filed a counter affidavit, wherein, it is stated that the petitioner being self drawing officer had submitted representation for her pensionary benefits to the Joint Director of Medical and Rural Health Services, Cuddalore in December 2013 only and the representation was forwarded to the 2nd respondent for onward transmission to the Principal Accountant General (A&E), Chennai - 18. The above application was forwarded to the Principal Accountant General (A&E), Chennai - 18 on 20.03.2014 by the 2nd respondent. The pensionary benefits were sanctioned by the Accountant General, Chennai in P29/12013513/2/PP.No.R.2013513/MED/dated:12.08.2014. All the pensionary benefits have been authorized to the petitioner directly to draw pensionary benefits from the District Treasury, Cuddalore and Sub Treasury, Vridhachalam. The above application was forwarded to the Principal Accountant General (A&E), Chennai - 18 on 20.03.2014 by the 2nd respondent. The pensionary benefits were sanctioned by the Accountant General, Chennai in P29/12013513/2/PP.No.R.2013513/MED/dated:12.08.2014. All the pensionary benefits have been authorized to the petitioner directly to draw pensionary benefits from the District Treasury, Cuddalore and Sub Treasury, Vridhachalam. Thus, delay in settlement of the pensionery benefits also vested with the petitioner in belated claim of bills in the District Treasury, Cuddalore. 5. It is further stated in the counter affidavit that the petitioner has not submitted any representations except the W.P.No.22400 of 2015 in this Court. The interest payment for the period from 01.09.2005 to 30.04.2015 as per the Tamil Nadu Pension Rules, 1978 Rules 45-A for the belated payment of Death-cum-Retirement Gratuity for Rs.4,04,131/- has been sanctioned vide G.O (D) No.260, Health and Family Welfare Department, dated 13.02.2016 communicated in Ref.No.43280/A2/2015 dated 03.03.2016 of the Director of Medical and Rural Health Services, Chennai-6. The Principal Accountant General (A&E), Chennai-18 in his Letter P20/IV/13619/15-16/54052 dated 0.09.2016 has directed that the interest payment of Rs.4,04,131/- not required AG's authorization to submit the bill at the District Treasury, Cuddalore. So the interest bill of Death-cum-Retirement-Gratuity for Rs.4,04,131/- submitted at the District Treasury, Cuddalore and the payment is made to the petitioner on 18.12.2016. It is also stated that, as per provision contained in Rule 45-A of the Tamil Nadu Pension Rules, 1976, interest for belated payment for Death-cum-Retirement-Gratuity, alone is eligible to the retired person. And there is no provision for interest claims for belated payment of pension, SPF & T.L.S except DCRG in the Tamil Nadu Pension Rules, 1978. Hence, the Government in Letter (Ms)No.222/Z-2/2015 dated 16.06.2017 Health and Family Welfare Department, Secretariat, Chennai-9, has rejected the interest claim by the petitioner except the Death-cum-Retirement-Gratuity. 6. Heard the Learned counsel for the petitioner and Learned Government Advocate appearing for the respondents. 7. The point for consideration in this writ petition is whether the petitioner is entitled to get interest for the belated payment of terminal benefits except death cum retirement gratuity which is already disbursed to the petitioner. 8. The learned counsel for the petitioner submits that, as per the rulings of the Hon'ble Supreme Court as well as the High Court, the petitioner is entitled to get interest on all the terminal benefits including death cum retirement gratuity. 8. The learned counsel for the petitioner submits that, as per the rulings of the Hon'ble Supreme Court as well as the High Court, the petitioner is entitled to get interest on all the terminal benefits including death cum retirement gratuity. To substantiate the same, he placed a copy of the order dated 20.07.2022 in CWP-6567-2020 of the Hon'ble High Court of Punjab and Haryana at Chandigarh. On perusal of the same, the issue raised in the present writ petition is discussed in detail and the relevant portion is extracted hereunder : “....... In the present case, the amount of gratuity and other benefits were retained by the respondents with them and used and therefore, the petitioner will be entitled for the grant of interest on the said amount. Hence, the retiral benefits, if already paid, will also carry interest @ 6% per annum from the date the amount became due till the release of the same. Let the amount of interest be calculated by the respondents within a period of two months from the receipt of copy of this order and the same be released to the petitioner within a period of four weeks thereafter.” 9. On going through the above decision, it is evident that the petitioner is entitled for belated payment interest on all the terminal benefits including DCRG which is covered by Rule 45A of the Tamil Nadu Pension Rules, 1978. As far as the rate of interest for belated payment of terminal benefits is concerned, upon considering the above said decision of the Hon'ble High Court of Punjab and Haryana, this Court deems it fit that it would be appropriate to award interest at the rate of 6% per annum from the date of retirement till the date on which the terminal benefits had been disbursed to the petitioner. 10. Accordingly, the respondents are directed to pay 6% interest for the terminal benefits except DCRG, from the date of retirement till the date on which the terminal benefits had been disbursed to the petitioner, within a period of four weeks from the date of receipt of a copy of this order. 11. In the result, this Writ Petition is allowed with the above terms. No costs. Consequently, connected miscellaneous petition is closed.