Central Administrative Tribunal - Chandigarh
Urmal Bala vs Garrison Engineer on 16 April, 2024
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CENTRAL ADMINISTRATIVE TRIBUNAL
CHANDIGARH BENCH
O.A. No. 60/55/2023
Chandigarh, this the 16th day of April, 2024
HON'BLE MR. SURESH KUMAR BATRA, MEMBER (J)
Smt. Urmal Bala, Wife of Late Sh. Onkar Singh, Fitter
General Mechanic (Highly Skilled), Aged about 56 years,
Resident of House No.B-XV 106 Sunder Nagar, Pathankot,
Tehsil and District Pathankot (Punjab), Group - C.
...Applicant
(BY ADVOCATE: Sh. Jagdeep Jaswal)
VERSUS
1. Union of India through Secretary, Ministry of Defence,
South Block, New Delhi - 110011.
2. Garrison Engineer (North), Mamun Pathankot - 145 001.
...Respondents
(BY ADVOCATE: Sh. Sanjay Goyal, Sr. CGSC)
O R D E R(Oral)
Per: SURESH KUMAR BATRA, MEMBER (J):
1. The applicant has approached this Tribunal by way of instant O.A, under section 19 of the Administrative Tribunals Act 1985, seeking the following relief:
"(i) That impugned order 16.09.2019 (Annexure A-1) to the extent, not considering the case of applicant for interest on delayed payments of ex-gratia amount, be declared as illegal and arbitrary.
(ii)That respondents be direced to pay the applicant interest @12% p.a. on the huge delay of payment of ex-gratia amount, in the interest of justice."
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2. The brief facts of the case are that the applicant is widow of deceased employee, Sh. Onkar Singh, who passed away due to an accident during official duties on 11.01.2013. The respondents initially released retiral benefits but delayed the payment of Ex-Gratia grant of Rs.10,00,000/- due in 2013, which was paid only on 01.06.2017 after a delay of about 4 years. The applicant submitted application dated 18.08.2017 to respondents seeking interest on delayed payment. The applicant again submitted reminder in reference to letter dated 14.02.2019 to release interest due to delay in payment of Ex-Gratia amount. The applicant's request was rejected vide impugned order dated 16.09.2019 stating that Government sanction does not exist for payment of interest. The applicant submits that the delay and denial of interest are unjust, arbitrary and illegal, resulting in wrongful gain for the respondents. The applicant earlier filed O.A 640/2020 but withdrew it on 14.12.2022, due to claim of multiple reliefs, with liberty to file fresh one with better particulars.
3. The applicant relied on order dated 17.04.2018 by Principal Bench of this Tribunal at New Delhi in the case of Smt. Bimla Devi Vs Union of India & Ors (O.A No.1103/2016) wherein six months' period was held to be sufficient to release the amount of Ex-Gratia, and other orders in O.A 3 No.3785/2017 (Smt. Premwati Vs Union of India & Ors.) dated 29.11.2018 and O.A No.3371/2017 (Manorma Devi Vs Union of India) dated 04.04.2019.
4. The respondents have filed written statement contesting the claim of the applicant and supporting the impugned order stating that the Ex-Gratia payment is a voluntary payment that is not a part of an organization's legal liability. Ex-gratia amount will only be paid to next of Kin of the deceased employee as lump sum after obtaining the Government sanction and there will not be any interest on it. The payment of Ex-Gratia lump sum compensation is not a vested right of the applicant and interest does not arise on such amount. Respondents further submits that Ex-Gratia lump sum compensation grant, i.e., relief sanctioned by the Government of India to deceased employee, who died during duty hours will be paid for damages or claims without recognizing any legal obligation. Therefore, there is no provision of interest on Ex-Gratia lump sum grant and requested to dismiss the O.A.
5. I have heard learned counsel for both the sides and perused material on records.
6. Learned counsel for the applicant argued that since the ex- gratia amount was due in 2013 and paid on 01.06.2017, 4 therefore, she is entitled for interest on delayed payment due to the delay of around 4 years. She relied on decision of Principal Bench of this Tribunal in Smt. Bimla Devi vs Union of India & Ors (supra), wherein, it was held that even if reasonable time is required at the end of respondents to process the claim of applicant for release of ex-gratia amount, such reasonable period could be at most six months.
7. The plea taken by the respondents to reject the claim of the applicant that Government sanction does not exist for payment of interest on compensation amount is rejected in view of the huge delay of 4 years in discharging their obligation of payment of Ex-Gratia amount, which, in my view, could also be at most six months. The applicant's husband died on 11.01.2013, whereas ex-gratia amount has finally been released on 01.06.2017 causing delay of more than 4 years, I am of the view that the applicant is entitled for interest @GPF rate for the period from the year 2013 to 2017.
8. In view of the discussion herein above, the impugned letter dated 16.09.2019 to the extent not considering the case of applicant for interest on delayed payments of ex-gratia amount, is quashed. The applicant is entitled to get the parity of orders relied upon by her. The respondents are 5 directed to pay interest @ GPF rate for 4 years (from the year 2013 to 2017) to the applicant on ex-gratia amount within a period of three months from the date of receipt of certified copy of this order.
9. In term of above, the O.A is allowed. No costs.
(SURESH KUMAR BATRA) Member (J) bp