Brahm Prakash Singh Vs State of Haryana and Others — Punjab & Haryana HC (2025) — LawSathi Research

Brahm Prakash Singh Vs State of Haryana and Others — Punjab & Haryana HC (2025) — LawSathi Research

What the court decided

AI extract

Outcome

Payment of interest at nine per cent per annum on the delayed gratuity and leave encashment from the due date till actual payment, to be paid within four weeks from today (decree/order dated 08.05.2025); interest awarded at 9% against 12% sought by the petitioner.

Issue for consideration

Whether the petitioner is entitled to interest on the delayed payment of his retiral benefits (gratuity and leave encashment), and if so, at what rate and from which date (he sought twelve per cent per annum from the date of retirement, i.e., 31.07.2022). +1 more

Court's answer

Retiral dues are payable to the employee as a matter of right; it is for the Department to ensure availability of adequate budgetary grant for timely payment, and an employee cannot be deprived of due benefits merely because the requisite budget was not available.

Ratio / Principle

The Department's explanation shows the delay in releasing gratuity and leave encashment was entirely on account of lapse on its part, for which the petitioner cannot be made to suffer.

Key takeaways

Failure to trace the petitioner's service book for release of leave encashment benefits cannot be condoned; it is the Department's responsibility to keep the service book readily available for release of retiral benefits to an employee whose retirement date is known well in advance.ratio¶27
The very fact that an official has been issued a show cause notice is reason enough to conclude negligence on the Department's part.ratio¶27

Detailed headnote1 paragraphs

Writ petition (CWP-8066-2025, decided 08.05.2025, Tribhuvan Dahiya J., oral) by a retired employee (retired 31.07.2022) of a Government-aided college seeking mandamus for interest at 12% per annum on delayed retiral dues: ALLOWED, with interest at 9% per annum from the due date till actual payment, payable within four weeks. Gratuity of Rs. 19 Lacs (95% Govt. Share) was sanctioned on 03.08.2023 and paid on 04.09.2023, delay being attributed to non-availability of budget (first quarter budget lapsed; second quarter allotted July 2023). Leave encashment of Rs. 25,22,695/- (276 days; 95% Govt. Share Rs. 2396507/-) was paid only on 22.07.2024 because the petitioner's service book went missing in the office of Director Higher Education, Haryana, Panchkula and was traced only on 19.10.2023; the erring official was issued a show cause notice. Holding: the delay was entirely on account of the Department's lapse, for which the petitioner cannot be made to suffer; retiral dues are payable as a matter of right and the Department must ensure adequate budgetary grant for timely payment; failure to keep the service book readily available cannot be condoned; issuance of the show cause notice itself establishes negligence. No statute or precedent was cited in the judgment.

CWP-8066-2025

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IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH

122 CWP-8066-2025 Decided On: 08.05.2025

DR. BRAHM PRAKASH SINGH

....PETITIONER(s)

Versus

STATE OF HARYANA AND OTHERS

....RESPONDENT(s)

CORAM: HON'BLE MR. JUSTICE TRIBHUVAN DAHIYA

Present: M r. Ranjit Saini, Advocate f o r the petitioner.

M s. Tanushree Gupta, Deputy A d vocate General, Haryana.

TRIBHUVAN DAHIYA J.(Oral)

The petition has been filed seeki n g a writ of mandamus directin g the responde n ts to release the payment of i nterest on delayed payment o f retiral benefit s to the petitioner at the rate of t welve per cent per annum fro m the date of ret i rement, i.e., 31.07.2022, till act u al payment.

Learned counsel for the petition e r contends that the payment o f retiral benefit s , viz., gratuity as well as leave encashment was released to th e petitioner afte r delay of about one year and t w o months, respectively, withou t any explanati o n. Therefore, in terms of settle d law, he is entitled to paymen t of interest on t he delayed release of benefits.

A n affidavit dated 25.04.2025 has been filed on behalf o f respondent n o .1 and 2, explaining the delay for late payment of gratuity a s well as 276 d a ys of leave encashment, in the f o llowing manner:

5 . That in respect of pay m ent of Gratuity, the delay i s e x plained as under:

Aman Dua 2025.05.14 17:59 I attest to the accuracy and authenticity of this judicial document

CWP-8066-2025

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xxx xxx xxx (i) (ii) That it is pertinent to ment i on here that the reason of dela y i n the payment of gratuity was d ue to lack of sufficient budge t b e cause the salary of teaching & non-teaching staff of Govt . A ided Colleges was pending. As the first quarter of total budge t h a s been received in the month o f May, 2023 the salary of 95% t o the teaching and non-teach i ng staff of 97 Govt. Aided . C olleges for the months of Febr u ary, March, April and May o f 2 0 23 was required to be released on priority basis. The Budget o f t h e 1" Quarter was lapsed. On t h e request of the department o f t h e answering respondent, the finance department Haryan a a l lotted the 2nd Quarter budge t in the Month of July, 2023 . A ccordingly, the sanctioned ord e r of the amount of gratuity o f R s. 19 Lacs (95% of the Govt. Share) was issued on 03.08.202 3 t o the concerned college by th e department of the answerin g r e spondent for making the paym e nt to the petitioner. The amoun t o f gratuity was paid by the c ollege on 04.09.2023 to th e p e titioner. Hence, there is a pro c edural delay on the part of th e a n swering respondent for sanctio n ing the amount of gratuity. 6 . That in respect of paym e nt of Leave Encashment, th e d e lay is explained as under:(i) That the petitioner retire d on 31.07.2022. The case o f Leave Encasement of the petitio n er was forwarded by the colleg e t o the office of Director Higher Education, Haryana, Panchkul a o n 27.02.2023 after 07 months o f the retirement of the petitioner . S i nce the service book of the pet i tioner was missing in the offic e o f Director Higher Education, H a ryana, Panchkula and the sam e t r aced out on 19.10.2023 from the record of department. Th e s a nction order of Rs. 25,22 , 695/- (276 days) of Leav e Encashment was issued on 01.0 4 .2024 by the department of th e a n swering respondent to the co n cerned college. The bill of th e s a id amount of leave encashme n t received on 23.05.2024 for m t h e college. The sanction of the leave encashment amount of Rs . 2 3 96507/- (95% Govt. Share) w a s sanctioned by the departmen t

Aman Dua 2025.05.14 17:59 I attest to the accuracy and authenticity of this judicial document

CWP-8066-2025

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o f the answering respondent o n 04.07.2024. Accordingly, th e final payment has been made by t he college on 22.07.2024. xxx xxx xxx (ii) 3.1. I n this factual background, lear n ed State counsel contends tha t the delay cau s ed in payment of gratuity was due to lack of sufficient budge t with the Dep a rtment, and the payment of le a ve encashment was delayed o n account of ne g ligence of an official of the De p artment who could not trace th e petitioner’s s e rvice book. On this count, the said official has been issued a show cause n o tice also. Therefore, the delay i n releasing the benefits was no t intentional.

H eard.

The explanation offered by the D epartment for not releasing th e due benefits o f gratuity and leave encashme n t to the petitioner within tim e shows that th e delay was entirely on account of lapse on their part for whic h the petitioner cannot be made to suffer. He could not be deprived of du e benefits only because the requisite budget w as not available. It is for th e Department t o ensure availability of adequate budgetary grant to releas e timely payme n t of retiral dues to the employe e s which they are entitled to as a matter of rig h t. The failure to trace the petit i oner’s service book for releas e leave encash m ent benefits can also not be co n doned. It is responsibility of th e Department t o keep the service book readil y available for release of retira l benefits to a n employee whose retirement d ate is known well in advance . Besides, the v e ry fact that an official has been issued a show cause notice, is a reason enoug h to conclude negligence on the D epartment’s part. 5. I n view thereof, the petition is a l lowed, and the respondents ar e directed to pa y interest at the rate of nine per cent per annum to the petitione r

Aman Dua 2025.05.14 17:59 I attest to the accuracy and authenticity of this judicial document

CWP-8066-2025

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for the delaye d payment of gratuity and leav e encashment from the due dat e till actual pay m ent within four weeks from to d ay.

( TRIBHUVAN DAHIYA) 08.05.2025 JUDGE Ad Whether speaking/reasoned? Yes/No Whether reportable? Yes/No

Aman Dua 2025.05.14 17:59 I attest to the accuracy and authenticity of this judicial document