Patna High Court
Baleshwar Shahi vs The State Of Bihar And Ors. on 31 January, 1992
Equivalent citations: 1992(2)BLJR998
Author: S.B. Sinha
Bench: S.B. Sinha
JUDGMENT S.B. Sinha, J.
1. In this application the only question which arises for consideration is upto which date a person, who submits his resignation voluntarily would be entitled to interest on his general provident fund i.e., from the date of submission of resignation/voluntary retirement or six months after the date when the said resignation/voluntary retirement is accepted.
2. The petitioner, who was at the relevant time, an Officer of the Bihar Agriculture Service, category I, submitted his resignation by letter dated 1-11-1956. The said resignation was not accepted for a long time. The petitioner filed a writ petition in this Court, which was registered as CWJC No. 2773 of 1982 and was disposed of by order dated 23-8-1982 whereby a Division Bench of this Court directed the Agriculture Production Commissioner to dispose of the petitioner's representation by 29th September, 1982 positively. It appears that thereafter a notification dated 26th February, 1983 was issued, whereby the petitioner was directed to retire voluntarily with effect from 10-12-1981. The said notification is contained in Annexure-3 to the writ application. As the petitioner was not paid his provident fund he filed this application.
3. On 16-1-1984 when the case was listed under the heading for admission, junior counsel to Standing Counsel No. 1 produced a letter of the Accounts Officer of the Accountant General dated 9th December, 1983, whereby it was stated that advice for final payment of the total amount has been authorised at Muzaffarpur Treasury under office letter dated 5th December, 1983.
4. The learned Standing Counsel for the Central Government, however, raised a question that the petitioner was entitled to interest on the sum deposited on his provident fund account only upto six months after the expiry of 1st November, 1967, and not upto the six months on the expiry of 10th December, 1981. In this situation this Court directed that this application shall be heard only on the aforementioned question.
5. Mr. P.K. Shahi, learned Counsel appearing on behalf of the petitioner, submits that in terms of Rule 14(4) of the Bihar General Provident Fund Rules, 1948, the petitioner would be entitled to get interest at the statutory rate for a period upto six months from the date when the application filed by the petitioner permitting him to retire voluntarily had been accepted, i. e. 10-12-1981.
6. Mr. G.P. Jaiswal, learned Counsel appearing on behalf of the Accountant General, on the other hand, drew my attention to the statements made in paragraph No. 5 of the counter affidavit of respondent No. 3 and submitted that the matter had been referred to the State Government, but no final order has been passed thereupon. Learned Counsel, however, drew my attention to paragraph No. 10 of the counter affidavit which reads as follows:
10. That it is relevant to state here that Shri Shahi resigned on 1-11-1967 which is recorded in the Final payment application and as per Rule 14(4) interest is payable up to six months beyond the date of resignation, retirement or dismissal, etc. Since Shri Shahi did not furnish the papers mentioned in paragraph 3 (B) above and more delay was apprehended his case was finalised by allowing interest upto April '68 i.e. upto six months from November' 67 the date of his resignation as recorded in the application and his final payment authority was issued payable at Muzaffarpur Treasury from where he was drawing his salary before his resignation with a copy to Shri Shahi at the address recorded in the application vide this Officer Letter No. ED-5-April 22/83-84/306-308 dated 1-12-1983.
7. However, it is not in dispute that final payment authority slip was sent only on 1-12-1983, as would appear from Annexure-D to the said counter-affidavit.
8. Rule 14(4) of the Bihar General Provident Fund Rules, 1948 reads as follows:
(4) In addition to any amount to be paid under Rules 29, 30 and 31 interest thereon upto the end of the month preceding that in which the payment is made, or upto the end of sixth months after the month in which such amount became payable, whichever of these periods be less shall be payable to the person to whom such amount is to be paid.
9. In this case, there is no doubt that although the petitioner submitted his resignation with effect from 1-11-1967, the same was not accepted for a long time. The petitioner filed various representations in this regard, but no order was passed by the State of Bihar. It is in this situation that the petitioner had to file a writ application before this Court and an order dated 23-8-1982, as contained in Annexure-2 was passed by this Court. In terms of the notification dated 28th February, 1983, as contained in Annexure-3 to the writ application it appears that the petitioner was permitted to retire voluntarily with effect from 10-12-1981. It is thus from the aforementioned date the amount of provident fund became payable. In terms of Sub-rule (4) of Rule 14 of the Bihar General Fund Rules interest is payable, which is accrued on the amount to be paid under Rules 29, 30 and 31 upto the end of the month preceding that in which the payment is made, or upto the end of sixth months after the month in which such amount became payable, whichever of these periods be less shall be payable to the person to whom such amount is to be paid. Thus, in this situation there cannot be any doubt that the petitioner would be entitled to interest calculated upto six months from 10-12-1981, inasmuch as only with effect from that date he ceased to be Government servant and thus the amount of general provident fund became payable in his favour. In this situation, the respondents are hereby directed to calculate the amount of interest payable in favour of the petitioner in the light of the directions given hereinbefore.
10. This application is thus allowed. However, in the facts and circumstances of the case there will be no order as to costs.