Guddu and others vs State of M.P.

The core issue in this case is : whether the petitioner who retired on 31.10.2001 and received retiral dues in the year 2007 is entitled to get interest on delayed payment or not ?

The simple case put forth by the petitioner is that for claiming retiral dues, he had to approach this Court by filing Writ Petition No.13186/2006, which was disposed of on

11.10.2006. The respondents were directed to decided his representation claiming the benefit of retiral dues. In turn, by Annexure-P/3 dated 29.03.2007 and 24.03.2007, the retiral dues have been paid to him. It is submitted that the petitioner is not responsible for the delay in making the payment and employer in such case is required to pay interest.

Shri P.K. Mishra, learned counsel for the respondent opposed the said relief. However, the employer has not filed any reply in the present case. It is a matter of 2007 and, therefore, no further time was given to the employer to file he reply.

This is settle in law that the retiral dues are not bounty. The said dues are paid to the employee at the December of his life so that he can settle down in life, discharge his family and social obligations and keep his body and soul together. If retiral dues are not paid for the reason solely attributable to the employer, the employer is bound to pay interest on delayed payment. [See: 1994

(2) SCC 240 (Union of India Vs. S.S. Sandhawalia)].

In view of aforesaid, I am inclined to issue direction for grant of interest to the petitioner. Accordingly, the respondents are directed to pay 6% interest to the petitioner for the delayed payment of retirl dues. The said amount shall be calculated and paid to the petitioner within 90 days from the date of production of copy of this order.

Petition is allowed to the extent indicated hereinabove.