Central Administrative Tribunal - Delhi
Rajeev Kapoor vs Commissioner Of Central Excise on 4 October, 2012
Central Administrative Tribunal Principal Bench, New Delhi O.A.No.1682/2011 Order reserved on 21st September 2012 Order pronounced on 4th October 2012 Honble Shri Sudhir Kumar, Member (A) Honble Shri A. K. Bhardwaj, Member (J) Rajeev Kapoor Ex. Inspector Customs Office of the Commissioner Central Excise Delhi-I Govt. of India R/o D-9, Kailash Colony New Delhi-48 ..Applicant (By Advocate: Shri Sachin Chauhan) Versus 1. Commissioner of Central Excise, Delhi-I CR Building, IP Estate New Delhi 2. Pay and Accounts Office Commissionorate of Central Excise Central Revenue Building New Delhi-02 3. Secretary to Govt. of India Ministry of Finance Department of Revenue, North Block Central Secretariat, New Delhi ..Respondents (By Advocates: Shri Amit Anand and Ms. Lata Gangwani for Shri H K Gangwani) O R D E R
Shri A.K. Bhardwaj:
The applicant has filed the present OA seeking issuance of a direction to the respondents to pay him the amount of Rs.51,333/- as interest from the date of his dismissal from service till final payment on the ground that the amount of GPF belonged to him and he had fundamental right to get it back with interest upto the date of payment.
2. The applicant joined as Inspector in the Department of Customs and Excise on 27.4.1983 and was dismissed from service w.e.f. 8.10.2009. The amount subscribed by the applicant to the GPF under General Provident Fund (Central Services) Rules, 1960 (for short GPF Rules) could be released to him only in the year 2011, i.e., after long delay. In terms of Rule 6 of the GPF Rules, an account containing following details is opened in the name of each subscriber:
(i) his subscriptions;
(ii) interest, as provided by Rule 11, on subscriptions;
(iii) bonus, as provided by Rule 11-A on subscriptions; and
(iv) advances and withdrawals from the Fund.
3. In terms of Rule 11 of GPF Rules, the Government is required to pay to the credit of the account of a subscriber interest at such rate as may be determined for each year according to the method of calculation prescribed from time to time by the Government of India. Such interest shall be credited with effect from 1st day in each year in the following manner:-
(i) on the amount to the credit of a subscriber on the last day of the preceding year, less any sums withdrawn during the current years interest for twelve months;
(ii) on sums withdrawn during the current year interest from the beginning of the current year up to the last day of the month preceding the month of withdrawal;
(iii) on all the sums credited to the subscribers account after the last day of the preceding year interest from the date of deposit up to the end of the current year;
(iv) the total amount of interest shall be rounded to the nearest whole rupee (fifty paise counting as the next higher rupee).
4. However, in terms of the Rule 11 (2) of the GPF Rules when the amount standing to the credit of a subscriber has become payable, interest shall thereupon be credited under said rule in respect only of the period from the beginning of the current year or from the date of deposit, as the case may be, up to the date on which the amount standing to the credit of the subscriber became payable.
5. In terms of Rule 34 (ii) of the GPF Rules, the Head of Office/ Department shall forward the details of the subscriber retiring or quitting service to the Accounts Officer indicating the recoveries effected against the advances which are still current and the number of installments yet to be recovered and also indicate the withdrawals, if any, taken by the subscriber after the period covered by the last statement of the subscribers account sent by the Accounts Officer. As per sub rule (iii) to Rule 34 ibid, the Accounts Officer shall, after verification with the ledger account, issue an authority for the amount payable to the subscriber at least a month before the date of superannuation but payable on the date of superannuation. Thus, in the case of superannuation, the GPF amount becomes payable on the date of superannuation. However, in the case of a dismissed government servant, no such time schedule has been suggested, apparently for the reason that the dismissal from service is an unforeseen event. However, in the G.I., M.F., OM No.F.35 (2)-E, V/67 dated 18.5.1968, it is provided that when the amount standing to the credit of subscriber becomes payable, it is the duty of the Accounts Officer to make payment of the amount on receipt of written application in this behalf from the person who claims payment of the amount.
6. According to the respondents, the applicant has already been given the entire amount of GPF and since he made the application for release of final payment of GPF on 24.1.2011, no interest is payable to him. To buttress the said submission, Shri Amit Anand, learned counsel for respondents relied upon the G.I., Dept. of Per. & Trg., OM No.20(3)-P & P.W./92-E, dated 5.8.1994. According to him, even a subscriber, who retires or quits service, becomes entitled to interest only from the date of expiry of one month after the application is submitted by him for release of GPF amount. Thus, the applicant, who is a dismissed employee, would not be entitled to the same from a date prior to submission of such application. From the perusal of the original application, the date of the application made by the applicant for payment of GPF account is not clear. However, in the representation dated 8.4.2011 (Annexure A-2), it is mentioned that he applied for withdrawal of the amount lying in his GPF account along with interest on 24.1.2011.
7. The term quit used in the aforementioned instructions dated 5.8.1994 needs to be given liberal/ beneficial/ magnanimous construction. The said term would include all such employees to whom the GPF is payable as a consequence of termination of their relationship as master and servant with the Government. The employees, who ceases to be government servant and are entitled to receive back their GPF subscription, cannot be treated differently only on account of the reason or mode of their quitting the service, i.e., retirement/ resignation/ dismissal/ quitting/ compulsory retirement, etc. Once certain amount is payable and is finally paid to somebody, for the period of delay in payment of the same, he would be entitled to interests on the said amount in the same manner in which any other person to whom such amount becomes available, is entitled to it, irrespective of his conduct otherwise. It is not so that in case of dismissal the respondents do not require the dismissed employee to make an application for release of the amount of GPF, as it is so required in the case of retired employees or those who quitted the service. Thus, it is held that the applicant would be entitled to interest in terms of the instructions dated 5.8.1994.
8. Even otherwise also, in terms of the order passed by this Tribunal in Shri M.D. Gupta v. Union of India & others (OA-470/2012) decided on 11.9.2012, interest on delayed payment on retiral dues can be claimed under Articles 14 and 16 of the Constitution of India even though there is no other rule to the effect. Paragraph 3 of the said order of this Tribunal reads as follows:-
3. In view of peculiar facts, i.e. the suspension of the applicant on the date of his retirement and retention of his service book by CBI investigating into the criminal case against him certain delay in releasing of terminal benefits was possible. However, the delay of approximately 1 = years is inordinate. Once irrespective of pendency of criminal case against applicant certain amount of terminal benefits were payable to him, the same should have been released promptly as per normal schedule. It is not clear from the facts whether the criminal case is yet finalised or not. However, for the purpose of determination of the issue raised in the present OA, the fate of said criminal case is not very material. As has been held in the case of S.K.Dua Vs. State of Haryana and Anr. (AISLJ 2008 (3) SC 118) interest on delayed payment of retrial dues can be claimed under Articles 14 and 16 of the Constitution even though there is no other rule to the effect. In the said case interest was made payable from the expiry of 02 months after the date of retirement. However, in the present case, since applicant was under suspension and his service book was retained by Investigating Agency not under the Control of respondents, respondents are directed to pay 6% interest to applicant w.e.f. 1.03.2010 to 31.01.2011 on the terminal benefits payable to him (despite pendency of criminal case) on the date of retirement.
9. In view of this, OA is disposed of with a direction to the respondents to pay to the applicant the interest on the amount of GPF as per aforementioned instructions dated 5.8.1994. No costs.
( A.K. Bhardwaj ) ( Sudhir Kumar ) Member (J) Member (A) /sunil/