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Allahabad High Court directs UP to pay interest at 8% per annum on retiral dues released 14 years later

The Allahabad High Court has directed the Uttar Pradesh government authorities to pay interest at 8% on a long delay of 14-year disbursement of retiral dues to the wife of a state government employee.

A Single Bench of Justice Ajay Bhanot passed this order while hearing a petition filed by Smt Krishnawati.

The retiral dues of the petitioner’s deceased husband were disbursed to her after a long delay. The petitioner has made an application for grant of interest on the delayed payment.

In this case, the husband of the petitioner died in harness. No dues certificate in regard to the deceased husband of the petitioner was issued by the competent authority on 14.03.2005 and verified on 18.08.2005 by the respective competent authorities.

However the retiral dues were not paid to the petitioner. She was made to run from pillar to post. The petitioner instituted a writ petition before the Court in the year 2019.

Despite directions issued by the Court the amount was not disbursed to her which caused the petitioner to file a contempt petition which was registered as Contempt Petition. Finally, the amounts to which the petitioner was entitled upon death of her husband were disbursed on 23.12.2019.

The counter affidavit filed on behalf of the State records that the application was filed by the petitioner for release of the provident fund amount, family pension on 18.08.2005. No cause for the delay in processing the family pension and provident fund amount which is the entitlement of the petitioner is disclosed from the counter affidavit.

The delay in payment of the aforesaid amount (consequently the Court finds) is entirely due to the apathy of the respondents. The death of an employee renders the family destitute in more ways than one. Apart from losing emotional anchor, the sole bread earner was also lost by the family.

“In these circumstances it is always expected that the State authorities should discharge their duties with promptitude and empathy as per law. To the contrary the authorities adopted a callous attitude to the plight of the petitioner. The deceased employee’s family cannot be harassed for her entitlements by overbearing officials. The respondents are liable to pay interest on the delayed payment.

In the wake of preceding discussion and the authorities in point the Court finds that the respondents are liable to pay interest to the petitioner for the delayed payment for pension and other terminal dues of the deceased employee,” the Court observed while allowing the petition.

“The interest amount is fixed at 8% per annum (considering the rate of interest). The interest shall be payable from 18.08.2005 till 23.12.2019. The interest shall be calculated and released in favour of the petitioner within a period of three months from the date of receipt of a certified copy of the order. In case the amount is not released within the aforesaid period, the concerned official shall be held liable for the delayed payment of interest after expiry of three months,” the order reads.

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