Navinkumar Krushnalal Mehta vs State Of Gujarat on 5 March, 2021

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Gujarat High Court

Navinkumar Krushnalal Mehta vs State Of Gujarat on 5 March, 2021

Bench: N.V.Anjaria

       C/SCA/6046/2019                               IA ORDER




         IN THE HIGH COURT OF GUJARAT AT AHMEDABAD


      MISC. CIVIL APPLICATION (FOR DIRECTION) NO. 1 of 2020
                                In
          R/SPECIAL CIVIL APPLICATION NO. 6046 of 2019

==========================================================

NAVINKUMAR KRUSHNALAL MEHTA Versus STATE TAX COMMISSIONER ========================================================== Appearance:

for the PETITIONER(s) No. MR. PANAM C SONI for the PETITIONER(s) No. MS.DHWANI TRIPATHI, AGP for the RESPONDENT(s) No. NOTICE SERVED for the RESPONDENT(s) No. ========================================================== CORAM: HONOURABLE MR. JUSTICE N.V.ANJARIA Date : 05/03/2021 IA ORDER In the facts of the case, present Miscellaneous Civil Application was taken up for final consideration today. Rule returnable forthwith. Learned Assistant Government Pleader Ms.Dhwani Tripathi waives service of rule on behalf of the respondents.

1.2 Heard learned advocate Mr. Panam Soni for the applicant and learned Assistant Government Pleader for the respondent authorities.

2. By filing the present application, the applicant original petitioner has prayed to set aside the communication dated 28.7.2020 and to direct the respondent to grant interest at the Page 1 of 4 Downloaded on : Mon Mar 08 22:02:36 IST 2021 C/SCA/6046/2019 IA ORDER rate of 6% for the delayed payment of retirement benefits.

3. In the background, the petitioner had filed Special Civil Application No.6046 of 2019 praying to set aside the orders dated 21.12.2018 and 8.1.2019 whereby the petitioner was denied final pension and deathcumretirement gratuity. The said petition came to be allowed by order dated 17.12.2019. The operative part reads as under, "The impugned orders denying the petitioner's final pension and the gratuity are set aside. The respondent authorities shall process the case of the petitioner for payment of final pension and the amount of death cumretirement gratuity immediately and pay the necessary benefits to the petitioner within eight weeks from the date of receipt of the present order."

3.1 It appears that thereafter petitioner addressed a communication dated 29.6.2020 raising grievance that he was paid gratuity of Rs.11,52,839/ and the amount of commuted pension Rs.12,87,795/ in totalling Rs.24,40,634/ and that there was delay of about thirteen months in making payment of the said amount. The petitioner therefore requested the respondent No.2 authorities State Tax Commissioner to pay interest on the said amount. The request was refused by authority as per communication dated 28.7.2020.

3.2 Thereafter, present Miscellaneous Civil Application came to be filed.

4. The present application was contested on behalf of the respondent No.2 through one Divakar Kishorchandra Vasavada, Page 2 of 4 Downloaded on : Mon Mar 08 22:02:36 IST 2021 C/SCA/6046/2019 IA ORDER serving as Assistant Commissioner of State Tax, inter alia contended in the affidavitinreply that the retirement amounts of commuted pension and deathcumretirement gratuity were paid to the petitioner in accordance with directions of the Court in order dated 17.12.2019 and that the petitioner was not entitled to interest.

5. When in support of the prayer for interest, learned advocate for the petitioner relied on Resolution dated 2.2.2018 of the Finance Department of the State Government which contemplates payment of interest for the delayed period on the ground of deathcumretirement gratuity, learned Assistant Government Pleader was at her receiving end. Since the State Authorities has accepted and followed policy of paying interest on the amount of deathcumretirement gratuity once paid belatedly. Learned advocate for the applicant could submit also that Section 7 (3A) of the Payment of Gratuity Act, 1972, provides for payment of interest at the rate as may be fixed.

5.1 The aforesaid Resolution dated 2.2.2018 of the Finance Department prescribes 6% interest to be paid on the ground of delayed payment of gratuity. When the Resolution of the State Government itself entitles an employee to get the interest on the delayed receipts of gratuity, the request of the petitioner would deserve acceptance for payment of interest but only on gratuity.

However, prayer in respect of grant of interest on commuted pension is rejected as meritless.

5.2 Therefore, the petitioner is held entitled to get interest on the amount of gratuity of Rs.11,52,839/. The petitioner retired on 30.12.2018. The actual payment of gratuity was made on Page 3 of 4 Downloaded on : Mon Mar 08 22:02:36 IST 2021 C/SCA/6046/2019 IA ORDER 3.3.2020. Therefore in light of the above Resolution dated 2.2.2018, interest at 6% for the said delayed period between 30.12.2018 till 3.3.2020 deserves to be paid to the petitioner.

8. It is directed that the respondent authorities shall calculate interest at the rate of 6% for the period commencing from 30.12.2018 till 3.3.2020 on the amount of deathcumretirement gratuity of Rs.11,52,839 and pay such interest to the petitioner within a period of four weeks from the date of receipt of the present order.

9. This application is allowed accordingly and to the said extent.

(N.V.ANJARIA, J) Manshi Page 4 of 4 Downloaded on : Mon Mar 08 22:02:36 IST 2021

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