Rajwati vs Union Of India And Ors

Briefly the facts of the current O.A. are that the husband of the applicant (Harish Chandra) was appointed in Railway as Group-C employee on 06.05.1976 and posted at DRM Office, Muradabad. He was promoted as Assistant Personnel Officer on 04.09.1998 and posted as Asstt. Personnel Officer in Northern Railway, Moradabad. He was placed under suspension on 22.02.2002 being involved in a vigilance case and subsequently, after enquiry, was dismissed from service on 01.09.2005. Later, he expired on 12.06.2008.

It is submitted that the respondents have paid an amount of Rs.2,95,808/- to the applicant on 27.12.2011 as provident fund dues. She states that she has been pursuing her case for grant of interest on the delayed payment of interest on provident fund dues but till date no action has been taken by the respondents. Aggrieved, the applicant has filed the current O.A. seeking the following relief:-

"To direct the respondents to grant to the applicant 18% interest for their illegal withholding of CPF for a period of 01.09.2005 to 27.12.2011 without any legal reason as per P.F. rates which is already revised from time to time."

During the course of hearing, same issues were reiterated by the learned counsel for the applicant. The learned counsel for the respondents, however, contested her claim on the ground of limitation.

It is settled position of law that interest has to be paid on delayed payment of Special Contribution to Provident Fund. As per Railway Board letter No. F(E)III 83 PF-1/7 dated 16.12.1984 it has been laid down that:-

"Sub- Payment of interest on delayed payment of special contribution to Provident Fund and also on Special Contribution to Provident Fund withheld on account of disciplinary/judicial proceedings against Railway employees.

The Ministry of Railways have been considering the question of payment of interest on :

(i) delayed payment of Special contribution to Provident Fund failing in after retirement, and

(ii) the amount of Special Contribution to Provident Fund withheld in cases of Railway employees against whom any departmental or judicial proceedings have been instituted for alleged irregularity or loss of Railway Funds, etc.

It has not been decided that:-

(i) Interest may be allowed on delayed payment of Special Contribution to the Provident Fund at the rate of 7% per annum for the period beyond 3 months and upto one year and at the rate of 10% for the period exceeding one year from the date the same becomes due for payment and would be payable till the end of the month preceding that in which the payment is actually made.

(ii) Interest may also be paid on delayed payment of special Contribution to provident fund in cases where any Departmental or Judicial Proceedings have been instituted against a Railway employee for an alleged irregularity or loss of Railway funds etc. and who is exonerated on the conclusion of the departmental or judicial proceedings, such interest being allowed in accordance with the instructions referred to under Para 2(1) above."

It is not disputed that there has been an inordinate delay of more than 06 years in payment of provident fund dues to the applicant. The interest is payable as per guidelines on the subject, hence the O.A. is allowed. The respondents are directed to pay interest to the applicant on the due PF amount at the rates specified in Railway Board's letter dated 16.12.1984, within 03 months after the receipt of a certified copy of this order. No costs.