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Judgment
Special leave granted limited to the question of granting of interest.
The appellant retired from service on 31st August, 1997. From the response filed by the respondent, it is clear that most of the payments of the retiral benefits to her were made long after she retired on 31st August, 1997. The details of the payments so made are as under:
-------------------------------------------------------------------------------- SL. No. Particulars Amount paid Date -------------------------------------------------------------------------------- i) G.P.F. 90% Rs. 1,80,899.00 27-11-1997 ii) G.P.F. 10% Rs. 20,751.00 25-04-1998 iii) G.I.S. Rs. 13,379.00 27-02-1998 iv) Encashment of leave Rs. 41,358.00 27-09-1998 v) Arrears of pay Rs. 15,495.00 27-09-1998 vi) Gratuity Rs. 1,09,753.00 05-12-1998 vii) Commuted pension Rs. 20,484.00 05-12-1998 viii) Detained amount Rs. 45,000.00 05-11-1999 --------------------------------------------------------------------------------
In case of an employee retiring after having rendered service, it is expected that all the payment of the retiral benefits should be paid on the date of retirement or soon thereafter if for some unforeseen circumstances the payments could not be made on the date of retirement.
In this case, there is absolutely no reason or justification for not making the payments for months together. We, therefore, direct the respondent to pay to the appellant within 12 weeks from today simple interest at the rate of 18 per cent with effect from the date of her retirement, i.e., 31st August, 1997 till the date of payments.
The appeal is allowed to the above extent.