Karnataka High Court
Union Of India vs Sri N V Gundappa S/O Late N K ... on 31 October, 2013
Bench: Mohan.M.Shantanagoudar, K.N.Phaneendra
1
IN THE HIGH COURT OF KARNATAKA, BANGALORE
DATED THIS THE 31st DAY OF OCTOBER, 2013
:PRESENT:
THE HON'BLE MR.JUSTICE MOHAN.M.SHANTANAGOUDAR
:AND:
THE HON'BLE MR.JUSTICE K.N. PHANEENDRA
WRIT PETITION NO.28080/2010 (S-CAT)
BETWEEN:
1.UNION OF INDIA
THROUGH THE GENERAL MANAGER
SOUH WESTERN RAILWAYS,
CLUB ROAD, KESHVPURA,
HUBLI.
2.THE CHEF PERSONNEL OFFICER
SOUTH WESTERN RAILWAY
CLUB ROAD, HUBLI.
3.THE DIVISIONAL SIGNAL AND
TELECOM ENGINEER, (DST AND C)
SOUTH WESTERN RAILWAY,
MYSORE DIVISION
MYSORE. ... PETITIONERS
(BY SRI N. AMARESH, ADV.)
AND:
SRI N V GUNDAPPA
S/O LATE N K VENKATARAMAIAH
SR. SECTION ENGINEER (RTD)
2
H.NO. 269, 3RD CROSS,
5TH MAIN, H BLOCK,
RAMAKRISHNA NAGAR,
MYSORE 570 022. ... RESPONDENT
(BY SRI IZZHAR AHMED FOR C/R)
******
THIS WRIT PETITION IS FILED UNDER ATICLES 226
AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO
QUASH THE ORDER DTD 4.5.10 PASSED BY THE
CENTRAL ADMINISTRATIVE TRIBUNAL, BANGALORE
BENCH IN O.A.NO.337/09 AVAILABLE AS AT ANNEX-A
AND ETC.,
THIS WRIT PETITION COMING ON FOR PRELIMINARY
HEARING, THIS DAY, MOHAN M. SHANTANA GOUDAR,
MADE THE FOLLOWING:
ORDER
By the impugned order, the Tribunal has awarded 9% interest in favour of the respondent herein for the delayed payment of retirement benefits to the respondent.
2. The records reveal that the respondent herein being the employee of South Western Railway, Hubli, filed an application for Voluntary retirement on 12.6.2006 with a request that the retirement shall be w.e.f. 30.9.2006. The Rules prescribe that the voluntary retirement will be effective from the date fixed by the applicant in his application for voluntary retirement. The Rules also 3 prescribe that the next date after the expiry of such date found in the notice of retirement, the employee can not be kept in service. Therefore, in the matter on hand, the respondent is deemed to be out of office w.e.f. 1.10.2006. Ultimately, the petitioners sent communication to the respondent dated 21.3.2007 intimating the respondent that he was deemed to have been relieved from duties w.e.f. 5.10.2006 i.e. after the completion of notice period in terms of the Board's letter dated 1.6.1981.
3. The grievance of the respondent herein before the Tribunal was that though he was out of office from 5.10.2006, he was not paid the pensionary benefits such as Gratuity, etc., and such benefits were paid only on 30.4.2007. Thus, according to him, he is entitled to interest for the delayed period i.e. from 5.10.2006 to 30.4.2007.
4. The Tribunal has rightly awarded 9% interest in favour of the respondent for the aforementioned delayed period. However, we make it clear that the respondent is entitled for interest on the delayed period of gratuity only 4 and not in respect of any other pensionary benefits. The awarding of 9% interest on the delayed payment of gratuity cannot be said to be on the higher side. It is necessary to observe that the respondent/employee is entitled to the interest on the Provident Fund as per the existing Rules of the railways. Accordingly, the following order is made:
(a) The impugned order needs no interference. Writ Petition fails and stands dismissed.
(b) We make it clear that the respondent is entitled to interest at 9% on the delayed payment of gratuity only. However, he is also entitled to interest on Provident Fund as per the Railway regulations for the delayed payment of PF.
(c) The order shall be complied within four months from the date of receipt of the copy of this order.
Sd/-
JUDGE Sd/-
JUDGE PL