Orissa High Court
Nabaghan Rout And Others vs Orissa Lift Irrigation Corporation ... on 11 March, 2015
Author: A.K.Rath
Bench: A.K.Rath
HIGH COURT OF ORISSA: CUTTACK
WP(C) No.14478 of 2004
In the matter of an application under Articles 226 and 227 of the
Constitution of India.
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Nabaghan Rout & others .... Petitioners
Versus
Orissa Lift Irigation Corporation Ltd.
& others .... Opp. Parties
For Petitioners ... Mr. S. Patra, Advocate
For Opp. Party No.2 ... Mr.S. Mohanty, Advocate
PRESENT:
THE HONOURABLE DR. JUSTICE A.K.RATH
Date of hearing : 11.03.2015 : Date of judgment : 11.03.2015
Dr. A.K.Rath, J The sole question that hinges for consideration of this Court is whether
the opposite parties can be mulcated with interest for withholding the retiral dues of the petitioners on jejune grounds.
2. Shorn of unnecessary details, the short facts of the case of the petitioners are that they were working as pump drivers in the establishment of Orissa Lift Irrigation Corporation Ltd. (hereinafter referred to as "the Corporation"). In December, 2002, opposite parties 1 and 2 promulgated a Scheme for Voluntary Retirement/Voluntary Separation Scheme. The last date for submission of the application for voluntary retirement was 15.01.2003. The said Scheme provides, 2 inter alia, that retiral dues like ex-gratia, gratuity, leave encashment and all other statutory dues would be paid to the employees within 60 days of acceptance of the application for voluntary retirement. However, opposite party no.2 issued a letter dated 02.01.2003 clarifying that the amount payable towards ex-gratia, gratuity, leave encashment along with all other statutory dues, such as, Provident Fund, Employees State Insurance Fund shall be released in one instalment to ensure disbursement to the employees on the date of separation. The further case of the petitioners is that they retired from service with effect from 30.04.2003 as per the order of the opposite parties 3 and 4. But then, the retiral dues were not paid. They submitted representations to the opposite party no.2 on 11.11.2004. However, the retiral dues of the petitioner no.1 were paid by way of cheque on 03.07.2004. So far as petitioner nos.2 and 3 are concerned, the same were paid on 21.08.2004. Since there was a delay in payment of retiral dues, they filed representations to opposite party no.2 for payment of interest at the rate of 18%.
3. Pursuant to issuance of notice, a counter affidavit has been filed by the opposite parties. The case of the opposite parties is that the calculation for voluntary retirement has been audited by the Auditors of Public Enterprises Department. The account payee cheques were received from the said department in the name of the concerned employees, who had applied for voluntary retirement. The cheques were immediately handed over to the concerned employees after the same was received from the Government. It is further stated that after transfer of L.I Points to Pani Panchayats, the work of the Corporation was reduced considerably. Pursuant to the decision of the Cabinet, the State Government decided to dispense with 7431 3 numbers of employees of the Corporation. The same was conveyed by the Government to the Corporation on 26.10.2002. In the above process, the Government had decided to dispense with 6067 numbers of regular employees and 1274 numbers of NMR /DLR employees of the Corporation. To facilitate the process of restructure, the employees were offered to avail the benefit of voluntary retirement scheme. It is further stated that the VRS due of petitioner no.1 amounting to Rs.2,43,552/- was received from the Government in Public Enterprises Department by way of cheque bearing no.50302 dated 11.06.2004, Similarly, the VRS dues of petitioner nos.2 and 3 amounting to Rs.2,34,416/- and Rs.2,01,986/- respectively were received by way of cheque bearing nos.517411 dated 21.8.2004 and 517412 dated 21.08.2004 respectively. The delay in payment of retiral dues cannot be attributed to the opposite parties. It is further stated that there is no provision for payment of interest against the delayed payment of the VRS dues.
4. Heard Mr.S.Patra, learned counsel for the petitioners and Mr.S. Mohanty, learned counsel for the opposite party no.2.
5. Clause 6.2 of the Voluntary Separation Scheme provides, inter alia, that the amount payable towards ex-gratia, gratuity, leave encashment and other statutory dues under the scheme shall be paid to the employees within 60 (sixty) days of acceptance of application by the Managing Director, OLIC subject to his/her clearing of all dues payable to the enterprise. On a conspectus of the said clause, it is crystal clear that the Corporation shall pay the ex-gratia, gratuity, leave encashment and other statutory dues under the scheme to the employees within 60 days of 4 acceptance of the application by the Managing Director subject to the employee clearing of all dues of the Corporation.
6. In the instant case, the applications filed by the petitioners were accepted. They retired from service with effect from 30.04.2003. Admittedly, there is delay of more than one year in payment of retiral dues of the petitioners.
7. A Constitution Bench of the apex Court, in the case of D.S. Nakara and others v. Union of India, AIR 1983 SC 130, held that the pension is not a bounty. The same is not a gratituous payment depending upon the sweet will or grace of the employer. The grant of pension does not depend upon any discretion.
8. In State of Kerala & others v. M. Padmanabhan Nair, (1985) 1 SCC 429, the apex Court held that the pension and gratuity are no longer any bounty to be distributed by the Government to its employees on their retirement but have become valuable rights and property in the hands of the employees. In view of the same, the culpable delay in settlement and disbursement thereof must be dealt with the penalty of payment of interest at the current market rate till actual payment to the employees.
9. The aforesaid view of the apex Court was echoed again in D.D. Tewari (D) Thr. L.Rs v. Uttar Haryana Bijli Vitran Nigam Ltd., and others, AIR 2014 SC 2861. In D.D. Tewari (supra) for delayed payment of pension and gratuity, the apex Court awarded interest at the rate of 9% per annum from the date of entitlement till the date of actual payment. The ratio of the said case applies with full force in the facts and circumstances of the case.
10. An employee opts for voluntary retirement scheme with a fond hope that the amount received at once will meet his financial crisis. If the retiral benefits 5 are withheld for a long period then the employee would be subjected to insurmountable hardship. In view of the same, the authorities of the Corporation, in its wisdom, thought it proper, to pay the retiral dues of the employees within 60 days from the date of acceptance of the application as per Clause 6.2 of the Voluntary Separation Scheme. Non receipt of the amount from the Government of Orissa is not a ground to withhold the retiral benefits of the employees. It is highly incomprehensible as to how the Corporation accepted the applications of the employees for VRS and thereafter unjustly withheld the retiral dues for a long time on jejune grounds.
11. The logical sequitur, from the analysis made in the preceding paragraphs, is that the Corporation is liable to pay interest for delayed payment of retiral dues of the petitioners.
12. Applying the principles laid down in D.D. Tewari (supra), this Court directs the opposite parties to pay interest at the rate of 9% per annum to the petitioners for delayed payment of retiral dues from 01.07.2003 till the date of disbursement of their retiral dues.
The writ petition is allowed. No costs.
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DR. A.K.RATH, J.
Orissa High Court, Cuttack.
The 11th March, 2015/PKS.