Smt. Mithlesh Mishra vs The State of M.P. and others

The dispute in this appeal is only in respect of rate of interest. Learned Single Judge after considering the facts of the case awarded interest on the dues @ 7.5.% per annum, while the contention of the appellant is that the appellant is entitled for @ 12% per annum interest on the dues of her late husband. The prayer is opposed by Shri Kaurav, learned Additional Advocate General for the respondents/State.

The facts of the present case are that husband of the appellant late Brahma Dutt Mishra was an employee of State. He was retired as a Principal on 31/10/1990. He was claiming that for the purpose of counting period of service, services rendered by him in the Government Aided Private Institution between 14/11/1959 to 16/03/1985 be also counted and accordingly he was entitled for pension and other retrial dues. The matter remains pending before the authority and vide Annexure P/2 dated 05/07/2008 his services were absorbed as Principal with effect from 16/03/1985. However, as claims were not settled, late Brahma Dutt Mishra filed a writ petition before the writ Court and during pendency of the writ petition, he died on 10/10/2012 and his wife Smt. Mithlesh Mishra was substituted in place of late Brahma Dutt Mishra. Learned writ Court relying on the earlier decision passed in the case of Smt. Prabha Devi vs. State of Madhya Pradesh and two others (W.P. No. 21055/2003) allowed the petition and directed that period between 14/11/1959 to 16/03/1985 be counted for the purpose of pension, settle all the dues and directed that all the arrears be paid to the appellant along with interest @ 7.5 per annum. This order is under challenge in this appeal.

Though, the appellant has placed reliance to an order of learned Single Judge passed in Smt. Prabha Devi vs. State of M.P. and others, W.P. No. 21055/2003 decided on 08.01.2004 in support of the contention that the appellant is entitled the interest @ 12% per annum on the aforesaid arrears, but, the aforesaid order was pronounced on 08.01.2004 when the rate of interest was much higher, so in that case the interest was awarded at the rate of 12% per annum. However, at present, rate of interest has been reduced substantially and in the aforesaid circumstances, such higher rate of interest cannot be awarded. Therefore, looking to the peculiar facts of the case, we dispose of this matter by directing the respondents to make payment of the arrears to the appellant along with interest @ 8% per annum. All the arrears be paid to the appellant within a period of three months from the date of communication of this order.

With the aforesaid modification, this appeal is disposed of. No order as to costs. Certified copy as per rules.