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Showing contexts for: interest on commuted pension in Sadashiv Narayan Naware vs The State Of Maharashtra, Through Its ... on 3 April, 2020Matching Fragments
7. Respondent no.4 Municipal Council filed affidavit in reply by which it denied the claim. Respondent no.4 would submit that already they have paid the retiral benefits along with interest. Particularly, they have paid interest on commuted pension amount in view of the common orders passed by this Court on 24.02.2014 in Writ Petition No. 4533/2013 and others. On facts it is contended that employee cannot claim commutation of pension as of right, hence, not entitled to claim interest on said amount. Respondent contended that several contempt petitions were filed but, the same came to be rejected. Respondent relied on some orders passed by this Court where the claim of interest was rejected.
8. It is respondents' stand that they are self-governing body and it is 'C' category Municipal Council. As per availability of funds they have paid retiral benefits to the employees. Due to weak financial condition they were unable to pay the arrears. There was no intentional delay, hence, they are not liable to pay interest. Lastly it is contended that respondent acted bonafidely and after order of this Court, also paid interest on commutation pension amount.
Judgment wp1852.18
9. The controversy is only about interest on delayed payment of commutation of pension. The rest of entire grievance of petitioners was redressed. Admittedly, after order of this Court, respondent no.4 Municipal Council has paid all the arrears and retiral dues in installment till November, 2014. Moreover, interest on delayed payment of commutation of pension was paid from the date of common order dated 24.02.2014.
11. Much reliance is placed by petitioners' on the common order dated 24.02.2014, passed by this Court in bunch of petitions. Those petitions were basically for release of all retiral benefits. The learned counsel for respondent in said petition has showed its inability to pay, hence, direction was issued to set apart monthly amount of Rs.2 lakhs and pay dues proportionately with interest. Admittedly, from the date of said order, respondent no.4 has paid interest even on commutation of pension amount. The petitioners are claiming interest from their date of retirement. Notably, there is no direction of this Court in order dated 24.02.2014 to pay interest, particularly from the date of retirement.