Indian Kanoon - Search engine for Indian Law

8. Arguments advanced by learned counsel for the parties were heard, when learned counsel for the applicants stated that he had received the statement regarding the account of the House Building Advance in respect of Smt. Ram Kali from the counsel for the respondents. It was clear that interest had been recovered on the HBA up to June, 2015 and deduction had been made from the DCRG. Deduction was also made from the Dearness Relief from the arrears of Family Pension paid to the applicants. He again pressed his contention that as per the Pension Act and Gratuity Act, no recovery could be made from these dues payable to the deceased employee.

9. Learned counsel for the respondents stated that in case of Government Employees / Employees of Autonomous Organizations under the Government of India, there was provision for deduction of gratuity in respect of amounts recoverable from a retiring / deceased employee. However, learned counsel fairly submitted that as per Government of Indias order issued vide OM No.10/15/59-H-III, dated 23.07.1962 and OM, dated 15.04.1965, where a part of the advance sanctioned to an employee under the HBA Rules or interest on the amount of advance is to be wiped off by adjustment either from Gratuity / DCRG, no interest should be recovered on the principal amount of outstanding advance beyond the date of retirement/death. From the statement of account that had been provided by the respondents, it was seen that recovery of interest had been made up to June, 2015, while the mother of the applicants expired on 08.08.2012. He stated that he would advise the respondent-department to recalculate the amount of interest to be recovered. Learned counsel also conceded that since Dearness Relief was part of the family pension, again deduction of the outstanding dues in respect of the employee Smt. Ram Kali could not be made from the arrears of family pension paid to the heirs of the deceased employees, Sh. Jagminder and Smt. Ram Kali. Hence revised calculation sheet had to be prepared regarding DCRG to be released to the applicants. Further, the dearness relief deducted from the arrears of family pension had also to be reimbursed to the family.

10. We have carefully considered the submissions made by learned counsel for the parties. The contention of learned counsel for the applicants that no deduction could be made from the DCRG cannot be accepted, since, the HBA Rules and FRs provide for recovery of outstanding advances from the retiral benefits of a deceased employee. However, keeping in view the concession made by learned counsel for the respondents, the respondents are directed to recalculate the amount recoverable on account of HBA drawn by Smt. Ram Kali and the amount now found due to the applicants may be released to them. Action in this regard may be completed within a period of three months from the date of a certified copy of this order being served upon the respondents. It is also observed there has been unreasonable delay in the finalization of this matter. Although Smt. Ram Kali expired on 08.08.2012 as per the respondents own admission the authorization regarding Provisional Family Pension and Death Gratuity as well as Family Pension have been issued in July / August, 2015. After the calculation is finalized, if some amounts are to be found due to the applicants, the interest on account of delayed payments may also be paid @ 6% calculating the amounts to be due from 08.12.2012 as a maximum period of four months can be considered to be reasonable for settling the pensionary benefits of a deceased employee. The present OA is disposed of with these directions. No costs.