This writ petition concerned delayed release of gratuity. The High Court held official parties liable for delay despite a quashed proceeding and directed payment of 7% interest for nearly five years.
Direct O.P. No. 3 to calculate and release interest at 7% p.a. on gratuity for period from Nov 1, 2013 to Sept 19, 2018 within three months.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
IN THE HIGH COURT OF ORISSA AT CUTTACK
W.P.(C)(OAC) No.722 of 2019
Kanhu Charan Karna
Petitioner
-versus-
State of Odisha & Ors.
…. Opposite Parties
CORAM: JUSTICE BIRAJA PRASANNA SATAPATHY
ORDER
01.02.2023
Order No
02. 1. This matter is taken up through Hybrid Arrangement (Virtual/Physical) Mode.
2. Heard Mr. L.K. Mohanty, learned counsel for the Petitioner and Mr. R.N. Acharya, learned Standing Counsel appearing for the Opp. Parties.
3. The Petitioner has filed the present writ petition claiming interest @ 9% for delayed payment of the unutilized leave salary amounting to Rs.3,94,250/- and gratuity amount of Rs.3,11,251/-.
4. In course of hearing Mr. Mohanty, learned counsel for the Petitioner contended that the Petitioner will not claim any interest on the delayed payment of the unutilized leave salary, if this Court will consider the payment of interest on the delayed payment of the gratuity amount.
5. It is contended that even though the Petitioner retired from his service on 31.10.2013, but the gratuity amount of Rs.3,11,251/- was released in his favour on 20.09.2018 i.e. after more than 4 ½ years. Therefore, in view of the provision contained under Rule 49(5)(a)
// 2 //
of OCS (Pension) Rules, 1992, the Petitioner is entitled to get interest @ 9% per annum on the gratuity amount of Rs.3,11,251/-.
6. Mr. Acharya, learned Standing Counsel on the other hand contended that since by the time the Petitioner retired from service on 31.10.2013 a proceeding was pending against him and the said proceeding was dropped vide order dtd.03.09.2016 only, Petitioner is not entitled to get interest as the same was released on 20.09.2018.
7. Having heard learned counsel appearing for the Parties and after going through the order passed by the Tribunal under AnnexureA/3, it is found that the proceeding in question since was initiated after retirement of the Petitioner and not in accordance with law, the Tribunal vide order at Annexure-A/3 dtd.09.09.2015 quashed the proceeding. But the authorities thereafter dropped the proceeding vide order dtd.03.09.2016 under Annexure-B/3. Once the proceeding is quashed vide order at Annexure-A/3, the Opp. Parties are due to release the retiral benefits. Therefore, in view of such action of the Opp. Parties in not releasing the gratuity amount, this Court is inclined to hold the Opp. Parties liable to pay interest. While holding so, this Court directs O.P. No. 3 to calculate interest @ 7% per annum on the gratuity for the period from 01.11.2013 to 19.09.2018 and release the same in favour of the Petitioner. The entire exercise shall be completed within a period of 3 (three) months from the date of receipt of the order.
8. The writ petition is disposed of accordingly.
(Biraja Prasanna Satapathy) Judge
Sneha
Page 2 of 2
2 issues framed by the court
Whether the petitioner is entitled to interest on delayed release of gratuity after a pending proceeding was quashed and later dropped?
What rate of interest and period should apply when the cause of delay was the authorities?
Kanhu Charan Karna
State of Odisha
Biraja Prasanna Satapathy
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
