"18. The principles, which can be culled out from the aforesaid judgments are that where State employer is not able to justify delay in payment of arrears of salary; settlement of retiral dues or terminal benefits, and it is found by the Court that the delay is wholly attributable to the State employer, the interest on such arrears of pay, pension and other retiral dues payable under the statutory rules, or even if they are not covered by statutory rules, must be paid to such employee. The reasonable period has been fixed by the Supreme Court of two months. If all the required documents duly completed have been submitted and that the State has delayed the amount of arrears of retiral dues or terminal benefits, the State employer is liable to pay interest on such delay, ordinarily at the rate of 12% simple interest per annum, unless the interest is quantified by the statutory rules. This interest paid is as penalty not only for mitigating the hardships sufferred in depriving the employee of his right to receive the amount due to him within reasonable period of time and also on the right to life, guaranteed under Art.21 of the Constitution of India.
