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Central Administrative Tribunal - Allahabad

Ganesh Chandra Pant vs Indian Veterinary Research Institute on 12 May, 2023

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                                   (Reserved on 09.05.2023)


           CENTRAL ADMINISTRATIVE TRIBUNAL,
             ALLAHABAD BENCH, ALLAHABAD


            Allahabad, this the 12th day of May, 2023

Present:
Hon'ble Mr. Mohan Pyare, Member-A

                           Original Application No.330/0445/2022
                                                  Connected with
                            Contempt Application No.330/14/2023
                                                    Arising out of
                                               OA No. 663 of 2014

Ganesh Chandra Pant aged about 72 years S/o Late Sri Girish
Chandra Pant Retired Sr. Finance & Account Officer, Indian
Veterinary Research Institute, Izzat Nagar Bareilly-243122
Presently R/o C-220, Rajendra Nagar, Bareilly.

                                                 .......Applicant.

By Advocate - Shri Virendra Singh.


                          VERSUS

1.   Secretary, Indian Council of Agricultural Research
     (ICAR), Krishi Bhawan, New Delhi.
2.   Director General, I.C.A.R., Krishi Bhawan, New Delhi.
3.   Deputy Director General (Animal Science), Indian
     council of Agriculture Research (ICAR) Krishi Bhawan,
     Dr. Rajendra Prasad Road, New Delhi-111001.
4.   Director, Indian Veterinary Research Institute, Izzat
     Nagar Bareilly-243122.
5.   Joint Director (Administration), Indian Veterinary
     Research Institute, Izzat Nagar Bareilly-243122.

                                               ......Respondents.
                                                                   2




By Advocates : Shri N.P. Singh.


                              ORDER

This Original Application has been filed on 17.05.2022 for the following reliefs:-

"(i) To Issue a writ, order or direction in nature of certiorari quashing the impugned D.O. No. AS/1/35/2019-IA dated 14.10.2021 (Annexure No. A-8 of O.A. with compilation No.I).
(ii) To issue a writ, order or direction in the nature Mandamus directing the respondents to pay the interest on leave encashment, gratuity and commuted value of pension in pursuance of pronouncement made by this Hon'ble Tribunal order dated 04.12.2017 passed in O.A. No. 663 of 2014. (Annexure No.A-1 of O.A.).
(iii) To issue a writ, order or direction in the nature Mandamus directing the respondents to pay the 18% interest on delayed payment of leave encashment, gratuity and commuted value of pension since the date of superannuation i.e. 31.07.2012 till the date of actual payment.
(iv) Issue a proper direction which the Hon'ble court may deem fit and proper direction made in Judgment dated 21.10.2013 passed in O.A. No. 3813 of 2012 (Dr. Santokh Singh (Retired) Vs. Union of India & others) and order dated 13.03.2012 in W.P.(C) No. 1227 of 2012 (Delhi Police Vs. Balwant Singh) in which the court has allowed the interest upon the leave encashment, gratuity and commuted value of pension.(Annexure No.9 & 10 of O.A.) (V) Award the cost of the Original application to the applicant."

2. The applicant has filed an OA No. 663 of 2014 against the order dated 06.02.2014 and 03.07.2012 which was 3 decided by this Tribunal on 04.12.2017. The brief facts of the case as narrated in OA No. 663/2014 are that the applicant was Senior Financial Officer in Indian Veterinary Research Institute, Izzat Nagar, Bareilly (in short IVRI). The applicant was suspended on 03.07.2012 (Annexure No. 2 to the OA) and a show cause notice was issued to the applicant on 27.07.2012 (Annexure No. 3 to the OA). The applicant filed reply to the show cause notice on 29.07.2012 (Annexure No. 4 to the OA), but till date neither any inquiry has been started nor any charge sheet has been submitted. The applicant retired on 31.07.2012. The respondents have not paid any retiral dues to the applicant till date in spite of several reminders of the applicant. By a letter dated 06.02.2014, Respondent No.2 informed the applicant that his retiral dues has been withheld due to a FIR against him, registered as case No. 683 of 2012, and its investigation is still pending. Counsel for the applicant submitted that the applicant is in no way involved in FIR. Applicant's counsel further submitted that the action of the respondents for not paying the retiral dues/pensionary benefits is violative of Article 14, 21 and 300A of the Constitution of India. The O.A. No. 663/2014 was decided and the operative portion of the said order dated 04th December, 2017 is reproduced below:-

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"Accordingly, the OA is allowed. Respondents are directed to release the retiral dues of the applicant alongwith interest as per the provisions of the CCS (Pension) Rules, 1972 within three months from the date of receipt of a certified copy of this order. There will be no order on costs."

3. In pursuance of the said order, an order dated 19th June, 2018 was issued by the competent authority. The operative portion of the said order is reproduced below:-

"The Director General, ICAR hereby directs to release the retiral dues of Shri G.C. Pant, Retired Senior Finance & Accounts Officer, ICAR-Indian Veterinary Research Institute (IVRI), Izatnagar, Bareilly alongwith interest as per the provisions of the CCS (Pension) Rules, 1972 at the earliest."

4. Accordingly, respondents sanctioned the leave encashment in favour of applicant but interest from 01.08.2012 to 20.08.2018 upon the aforesaid amount was not paid. The respondents have paid the interest on gratuity for delayed payment. The applicant also received commuted value of pension without paying interest on commuted value of pension. The applicant submitted his representation dated 30th June, 2018, 03rd August, 2018, 24th August, 2018, 11th December, 2018 and 22nd June, 2019 pertaining to interest on delayed payment of retiral dues. They have cited Judgment of Hon'ble High Court of Delhi in Writ Petition (C) No. 1227 of 5 2012 Delhi Police Versus Balwant Singh in which Hon'ble High Court have observed that the Hon'ble Supreme Court had directed that interest be paid at such high rate as 18% per annum on both gratuity as well as on leave encashment amount, we see no reason to interfere with the directions of the Tribunal granting interest at the rate of 9% per annum. Denial of interest to applicant on leave encashment and commuted value of pension is discriminatory and illegal and hence, applicant wanted that the relief sought for in this OA should be allowed.

5. Respondents in their counter affidavit submitted that the order issued on 04.08.2018, only order for encashment of 300 days earned leave was issued. According to DOP&T Guidelines order No. 21011/08/2013-Estt. (AL), there is no provision in CCS (Leave) Rules, 1972 to pay Interest on Leave Encashment and hence, interest was not paid on encashment of earned leave.

Rate of commuted value of pension was calculated at the rate 8.194% amounting to Rs. 6,06,684/- vide PPO issued on 02.07.2012. Applicant's commuted amount was re- calculated @ 7.591% as per the age on date of application for the commutation after revocation of his suspension. No 6 interest was paid and was permissible on commuted value of pension as applicant was drawing full pension from the date of superannuation till the date of issue of council's order dated 19.06.2018. This provisional pension was at full rate by not deducting 40% of the pension as Commuted Value of Pension. The applicant was placed under suspension before retirement so he was getting full provisional pension till the finalization of the case. Since, he has drawn full provisional pension till the date of submitting the request for commutation, the question of allowing interest from the date of retirement on commuted value does not arise.

6. The applicant was retired while on suspension, payment of retiral dues to him does not arise except provisional pension till the finalization of disciplinary proceedings initiated against him. He filed a Court case against his suspension and on receipt of orders of the Court, all pensionary benefits were allowed vide council's order no.F.4-1/2012-Vig.1 dated 19.06.2018 and accordingly, all the pensionary dues viz. gratuity along with interest, commutation of pension, leave encashment were paid to applicant after finalization of disciplinary proceeding on 19.06.2018.

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7. In their rejoinder affidavit, the applicant have submitted that in the identical nature of case the Hon'ble High Court in the case of Writ A. No. 4726 of 2009 (Suresh Pratap Singh Vs. State of U.P. & others) granted 12% p.a. compound interest on the delayed payment and also imposed a cost of Rs. 25,000/- on the respondents.

8. Heard counsel for both the parties and perused the entire documents.

9. Perusal of documents clearly indicate that respondents have not paid any interest on encashment of earned leave. As pointed out by respondents that applicant was getting full provisional pension without commuting (as he was under

suspension) and commuted value of pension was calculated from the date of finalization of retiral benefits in the light of Judgment of this Tribunal there is no question of interest on Commuted Value of Pension. The claim of the applicant for interest on commuted value of pension is not justified.
Interest on gratuity has been paid leaving a small period from 03.08.2018 to 09.01.2019, amounting to Rs.1,28,934/- the issue of payment on interest on retiral benefit is already 8 settled by the Hon'ble High Court. The applicant is entitled for payment of interest on delayed payment of encashment of earned leave @ 6.5% till the date of payment. He is also entitled for remaining amount of interest on gratuity subject to re-calculation by the respondents till the date of settlement @ 6.5% per annum. The commuted value was not withheld as he was getting provisional pension equivalent to full pension and so there is no question of payment of interest on Commuted Value of Pension.

10. OA is partially allowed as discussed above. No order as to costs.

(Mohan Pyare) Member (A) /Shakuntala/