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Judgment
ORDER
Shri Pradeep Kumar Mishra, learned counsel appearing for the applicant and Shri Rajpal Singh, learned counsel appearing for the respondents, are present and heard.
Present Original Application has been filed under section 19 of the Administrative Tribunals Act, 1985, seeking the following relief:-
“8.(i) to allow the application & issue order or direction to Respondent No. 2 & 3 i.e. DRM and Sr. DPO N.R./Lucknow. to make payment of all settlement dues etc. as payable to the applicant and to issue Pension Pay order in favour of him for regular payment of monthly pension alongwith arrear whereof and admissible interest thereon since the applicant is holding lien there and in terms of Rly. Bd circular dated 08.06.2022 they are bound to arrange the payment of settlement dues without any delay for which time bound direction are fervently prayed;
8.(ii) to issue any other suitable orders or directions in favour of the applicant as deemed just and proper by this Hon'ble Tribunal in the facts and circumstances of the case;
8.(iii) Award the cost of application in favour of the humble applicant.”
The applicant retired on attaining the age of superannuation rendering a service of more than 36 years on 31.12.2023. He was holding a pay of Rs.78,800/- in GP Rs.4600 (level-7) at the time of his retirement. The applicant was working at the Construction Organization at the time of his retirement and his lien was in the Electrical Branch which had to pay all the post retiral settlement dues. The present Original Application has been filed seeking the release of all the retiral dues and interest on the arrears thereof on account of delayed payment of the same.
Submission of learned counsel for the applicant is that in terms of Railway Board’s letter no. 2014/AC-2/21/3 dated 08.06.2022 addressed to all zonal Railways, it has been instructed that the payment of all settlement dues of officers/staff on retirement working at construction organization may be arranged by lien units only without any delay. Thus, DRM/LKO/Sr. DPO/N.Rly was bound to make the payment in time and issue the pension order to the concerned bank for payment of monthly pension and arrear without any delay. The applicant had already submitted his application dated 09.02.2024, 01.04.2024, and 18.04.2024 to respondent no.3 with the request that after a lapse of 04 months, his settlement dues etc. and PPO have not been arranged so far. Thus, the applicant is entitled for interest on the delayed payment made by the respondents.
Submission of learned counsel for the respondents is that a PPO No. 20237030600529 has been issued on 24.07.2024 whereby pension has been granted to the applicant. The office of the ADFM/DFM also issued a letter dated 01.08.2024 whereby the applicant has been given Rs.52,45,646/- as Group Ins Scheme, Leave Salary, Commutation, Gratuity and as PF Settlement. In view of above mentioned facts and circumstances, since all the payment has been made, the O.A. has become infructuous.
In reply, learned counsel for the applicant states that the applicant has been paid (Rs.5245640/- as GIS, Leave salary, Commutation, Gratuity, and as PF settlement which details is given below:-GIS=Rs.63945/-, Leave Salary=1150480/-, Commutation Rs.1549650/-, Gratuity=Rs.1898292/- (Deduction Rs.78000/-) and PF settlement Rs.661277/-- Total Rs.5245640/- after six months from the date of his retirement dated 31.12.2023 thus there is a delay of six months in making the payment of the aforesaid settlement dues to which the applicant is entitled to get interest @ 12% P.A. from the date it became due. It is further submitted that as per rule 87 (i) of the Rly services (pension) rule 1993, it is provided that if the payment of gratuity has been authorized after 3 months from the date when its payment became due on superannuation and it is clearly established that the delay in payment was attributable to administrative lapse, interest at such rate as may be specified from time to time by the Central Government in this behalf on the amount of gratuity in respect of the period beyond 3 months shall be paid.
I have considered the rival submissions of learned counsel for the parties and perused the entire documents on record.
The applicant’s entitlement for interest on the commutation amount is not established in absence of any statutory provision. Thus, there remains only the gratuity amount and leave salary. The applicant has retired on 31.12.2023. Payment under the aforesaid head has been made on 29.07.2024. Thus, there is a delay of about seven months. As per provision of Rule 87 of the Railway Servants (Pension) Rules, 1993, the amount under the aforesaid head after retirement should have been paid within three months beyond which interest shall accrue on the delayed amount until and unless the delay is attributable to the employee concerned. In the present matter, there is a delay of about seven months. If the three months’ time as provided under rule 87 of the Railway Servants (Pension) Rules, 1993, is exempted, then also there is a delay of about four months due to administrative lapse. Therefore, the applicant is entitled for payment of interest on delayed payment of gratuity amount and leave salary.
In view of above, the O.A. is partly allowed. The respondents are hereby directed to make a payment of interest at the GPF rate on the delayed payment of Gratuity and Leave salary for the period beyond three months from the date of retirement till the payment is actually made. The aforesaid exercise should be completed within a period of three months from the date of receipt of a certified copy of this order.
All associated M.As. also stand disposed of. No order as to costs.