Bombay High Court
Union Of India Thr. Sec. And 2 Ors vs Banshidhar Dwivedi Brij Ratan Dwivedi ... on 18 February, 2020
Equivalent citations: AIRONLINE 2020 BOM 2073
Author: Vinay Joshi
Bench: A. S. Chandurkar, Vinay Joshi
WP 5787/06 1 Judgment
IN THE HIGH COURT OF JUDICATURE AT BOMBAY,
NAGPUR BENCH, NAGPUR.
WRIT PETITION No. 5787/2006
1. Union of India, through the Secretary,
Ministry of environment & Forests,
Paryavaran Bhavan, CGO Complex,
Lodhi Road, New Delhi.
2. Pay and Accounts Officer,
Ministry of Environment and Forests,
Paryavaran Bhavan, CGO Complex,
Lodhi Road, New Delhi.
3. Regional Director, Forest Survey of India,
Central Zone, CGO Complex, Nagpur. PETITIONERS
.....VERSUS.....
1. Banshidhar Dwivedi s/o Birj Ratan Dwivedi,
Aged about 60 yrs, R/o 572 E/24B, Opposite
Kiran Medical Stores, Main Road, Surendragarh,
Nagpur. Retd. Dy. Ranger Forest Survey of
India, Nagpur.
2. Central Administrative Tribunal,
Mumbai Bench at Nagpur. RESPONDENTS
Shri S.A. Chaudhari, counsel for petitioners.
None for respondents.
CORAM : A. S. CHANDURKAR AND VINAY JOSHI, JJ.
DATE : 18TH FEBRUARY, 2020
ORAL JUDGMENT (PER : VINAY JOSHI, J.)
The petitioners have challenged the impugned order dated 24.01.2006 passed by the Central Administrative Tribunal in Original Application No.2156 of 2004, however the learned counsel for the petitioners has restricted the challenge to the extent of grant of interest on commutted value of pension only.
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2. Heard Shri S.A. Chaudhari, learned counsel for the petitioner and perused the Central Civil Services (Pension) Rules, (for short, 'CCS (Pension) Rules'). The respondents have not put in their appearance, though served.
3. The respondent no.1 had approached the Central Administrative Tribunal claiming interest on delayed payments under various heads like Leave Encashment, CGEGIS, Commutted value of Pensaion, G.P.F., Gratuity, etc. On assessment of the material, the Central Administrative Tribunal has awarded interest at the rate of 6% per annum on the commutted value of pension for the period from 01.12.2003 to 02.04.2004. Being aggrieved, the petitioners have the present writ petition.
4. We have gone through the CCS (Pension) Rules. Rule 68 of the CCS (Pension) Rules provides for payment of interest on delayed payment of gratuity. However, there is no such provisions for grant of interest on commutted value of pension. The relevant Clause (2) of the Government of India's Decision No.5 in Swamy's - CCS (Pension) Rules (Page 231) is reproduced below:-
"2. As per CCS (Pension) Rules, 1972, no interest is payable on delayed payment of ::: Uploaded on - 21/02/2020 ::: Downloaded on - 23/03/2020 08:58:52 ::: WP 5787/06 3 Judgment pensions/commutted value of pension. However, the above recommendation of the Committee on delayed payment of retirement dues has been examined in this Department in consultation with Department of Personnel and Training and Department of Expenditure, Ministry of Finance and it has been decided to implement the recommendation as detailed below: -
(a) All pensioners' dues are to be settled by strictly following the procedures laid down in Rules 56 to 76 of CCS (Pension) Rules, 1972.
(b) Wherever delays are anticipated, provisional pension should be sanctioned immediately.
(c) Any delay in processing of pension resulting in pension not being authorized on the last working day of retirement of the Government servant, should be reported by the Head of Office of the next higher authority who would watch the settlement of delayed cases.
(d) In respect of delayed payment of gratuity wherever it results in payment of penal interest at the rate applicable to GPF deposits under Rule 68 of CCS (Pension) Rules, 1972, Secretary of the Administrative Ministry or Department would initiate action to fix responsibility at all levels to recover the amount from the concerned Dealing Official, Supervisor and Head of Office in proportion to their salary by following the prescribed procedures for the purpose. This should be strictly enforced with immediate effect.
(e) Once it has been decided to pay gratuity, the amount should be paid immediately pending a decision ::: Uploaded on - 21/02/2020 ::: Downloaded on - 23/03/2020 08:58:52 ::: WP 5787/06 4 Judgment regarding payment of interest. This would reduce the interest liability if any, on payment of delayed gratuity.
(f) In the matter of delayed payment of leave encashment, the Department of Personnel and Training in their note, dated 2-8-1999 has clarified that there is no provision under CCS (Leave) Rules for payment of interest or for fixing responsibility. Moreover, encashment of leave is a benefit granted under the leave rules and not a pensionary benefit.
(g) In the matter of CGEGIS, the Department of Expenditure, Ministry of Finance in their U.O. No.709/E. V/99, dated 6-8-1999 has clarified that payments under CGEGIS cannot be termed as terminal benefit. Table of Benefit which takes into account interest up to the date of ccessation of service, no interest is payable on account of delayed payments under the scheme. They have also clarified that CGEGIS payment cannot be withheld and no Government dues can be recovered from the accumulation except the amount claimed by the financial institution as due from the employee on account of loans taken for house building purpose."
From the abovequoted provision, it can be seen that there is no express provision for granting interest on the commutted value of pension.
Therefore, the interest granted by the Central Administrative Tribunal on the commutted value of pension for the period from 01.12.2003 to 02.04.2004 cannot be said to be justified in the eyes of law. The Central ::: Uploaded on - 21/02/2020 ::: Downloaded on - 23/03/2020 08:58:52 ::: WP 5787/06 5 Judgment Administrative Tribunal has not assigned any reason or source under which the respondent no.1 was entitled for award of interest on commutted value of pension. Since there is no provision for grant of interest on the commutted value of pension, the part of order to the extent of grant of interest on the commutted value of pension is liable to be set aside. We take a note that the petitioners have made a categorical statement in paragraph 2 of the petition that though interest on the commutted value of pension is not paid to the respondent no.1, however interest has already been paid to the respondent no.1 under rest of the heads. Hence, the following order is passed:-
5. The writ petition is partly allowed. The part of the order of the Central Administrative Tribunal that grants interest on the commutted value of pension to the respondent no.1 for the period from 01.12.2003 to 02.04.2004 is quashed and set aside. Rest of the order of the Central Administrative Tribunal in Original Application No.2156 of 2004 is maintained. Rule accordingly. No costs.
(VINAY JOSHI, J.) (A.S. CHANDURKAR, J.)
APTE
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