Praveen Kumar v. Hrtc and Others

Himachal Pradesh HC3 Apr 2025CWP/6216/2024

Case brief

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What is this about?

CWP No.6216 of 2024, Praveen Kumar versus HRTC & Ors., High Court of Himachal Pradesh, Shimla, decided 03.04.2025 (Jyotsna Rewal Dua, J.). Keywords: gratuity; leave encashment; retiral benefits; interest on delayed payment of retiral dues; 9% per annum interest beyond six months; Payment of Gratuity Act; HRTC retiree; writ petition disposed of with directions.

What did the court decide?

Direction to the respondents to pay gratuity and leave encashment to the petitioner with interest as per applicable rules till actual payment, within six months; if delayed beyond six months, with interest at 9% per annum till the date of actual payment. Pending miscellaneous application(s) disposed of. ¶¶14

Praveen Kumar Vs Hrtc and Others — Himachal Pradesh HC (2025) — LawSathi Research

What the court decided

AI extract

Outcome

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Issue for consideration

Whether the respondents are liable to pay the petitioner, who retired from HRTC service, the amount of gratuity and leave encashment along with interest for the delay on the part of the respondents.

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Court's answer

Writ petition disposed of with a direction to the respondents to pay the amount of gratuity and leave encashment to the petitioner with actual rate of interest as per applicable rules till the time of actual payment, within a period of six months.

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Ratio / Principle

If the due amount of payment is delayed beyond six months, it shall be paid with interest at the rate of 9% per annum till the date of its actual payment.

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Key takeaways

Pending miscellaneous application(s), if any, shall also stand disposed of.ratio¶¶16

Detailed headnote1 paragraphs

Retired employee of HRTC filed a writ petition seeking payment of gratuity and leave encashment along with interest for the delay attributable to the respondents. The respondents did not file a reply; with the consent of learned counsel, the matter was taken up for disposal at that stage. Relying on earlier orders of the Court in Nek Ram (CWP No.3050 of 2014, decided 17.07.2014), Subhash Chand (CWP No.4377 of 2021, order dated 25.08.2021), Ram Lal (CWP No.6034 of 2021, decided 23.11.2021) and Review Petition No.110 of 2021 (decided 25.11.2021), the High Court of Himachal Pradesh (Jyotsna Rewal Dua, J.) disposed of the writ petition with a direction to the respondents to pay gratuity and leave encashment with interest as per applicable rules till actual payment, within six months; if payment was delayed beyond six months, the due amount was to carry interest at 9% per annum till the date of actual payment. Pending miscellaneous applications were also disposed of.

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IN THE HIGH COURT OF HIMACHAL PRADESH, SHIMLA

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CWP No.6216 of 2024 Date of decision: 03.04.2025

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Praveen Kumar.		...P	etitioner.
	Versus
HRTC & Ors.		...Res	pondents.
Coram: Ms. Justice Jyotsna Whether approved for	Rewal Dua, Judge. reporting?
For the petitioner	: Mr. Skandh vice Mr. Advocate.	Sharma, Vikas	Advocate, Rathore,
For the respondents	: Mr. Abhijeet, Raman Jamal	Advocate ta, Advoc	, vice Mr. ate.

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Jyotsna Rewal Dua, Judge

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Even though respondents have not filed reply to the writ petition, however, with the consent of learned counsel for the parties matter is taken up for disposal at this stage.

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This writ petition has been filed by the petitioner, who had retired from the service of the respondent–Himachal Road Transport Corporation (HRTC), with the prayer that the respondents may be directed to pay the amount of Gratuity and Leave Encashment along with interest for the delay on part of the respondents.

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Whether reporters of Local Papers may be allowed to see the judgment? Yes

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Reliance has been placed on the judgment passed by a Division Bench of this Court in CWP No.3050 of 2014, titled Nek Ram versus State of Himachal Pradesh and Others , decided on 17.07.2014 and also on a subsequent order of this Court dated 25.08.2021, passed in CWP No.4377 of 2021, titled Sh. Subhash Chand versus The Himachal Road Transport Corporation, Shimla and Others along with connected matters , in which, the respondents were directed to pay the retiral benefits to the petitioners within a period of six months. In case the required retiral benefits are not paid to the petitioners within the aforesaid period of six months, then in addition to the due statutory benefits, the petitioners shall also be paid interest at the rate of 9% per annum beyond the period of six months till the date of actual payment.

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In another subsequent order of this Court passed in CWP No.6034 of 2021, titled Ram Lal versus The Himachal Pradesh Tourism Development Corporation Ltd. and another and the connected matter , decided on 23.11.2021, the respondents were directed to make payment of gratuity to the petitioners within a period of six months

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from the date of passing of the order. In the event of nonpayment of due amount, the petitioners were held entitled to differential amount of interest between the amount of interest statutorily payable to the petitioners as per the Payment of Gratuity Act and the interest at the rate of 9% per annum for the period of delay beyond six months.

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While disposing of Review Petition No.110 of 2021 on 25.11.2021, preferred against the order dated 09.11.2021 passed in CWP No.6928 of 2021, in which, the aforesaid order dated 25.08.2021 passed in CWP No.4377 of 2021 was relied upon, this Court has clarified the aforesaid order in the terms that the respondent-Corporation shall be liable to pay entire retiral dues of the petitioners, including gratuity, arrears of pension and leave encashment along with prescribed rate of interest, within a period of six months from the due date till the actual payment is made.

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In view of above, this writ petition is disposed of with a direction to the respondents to pay the amount of gratuity and leave encashment to the petitioner with actual rate of interest as per applicable rules till the time of actual payment, which shall be paid to him within a period of six

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months from today. The due amount of payment, if delayed beyond six months, shall be paid with interest to the rate of 9% per annum till the date of its actual payment. Pending miscellaneous application(s), if any, shall also stand disposed of.

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Jyotsna Rewal Dua 3^rd April, 2025 Judge (Pardeep)

Praveen Kumar v. Hrtc and Others

Case brief

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Praveen Kumar v. Hrtc and Others

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