Full Judgment Text
REPORTABLE
IN THE SUPREME COURT OF INDIA
CIVIL APPELLATE JURISDICTION
CIVIL APPEAL NO. 1698 OF 2022
Dr. A. Selvaraj …Appellant(s)
Versus
C.B. M. College and Ors. …Respondent(s)
J U D G M E N T
M.R. SHAH, J.
1. Feeling aggrieved and dissatisfied with the impugned judgment
and order dated 26.10.2021 passed by the High Court of Judicature at
Madras in Writ Appeal No.704 of 2020 by which the High Court has
disposed of the said appeal without granting any relief which was
claimed, the original appellant has preferred the present appeal.
2. That the appellant herein is a retired Associate Professor of
Chemistry. He retired from the respondent No.1 – C.B.M. College,
Coimbatore w.e.f. 30.06.2011. That the institution in which he was
Signature Not Verified
serving is an aided college. There was a delay in paying the
Digitally signed by R
Natarajan
Date: 2022.03.04
16:40:30 IST
Reason:
retirement/pensionary benefits, which was not paid despite various
correspondences and the representations. Ultimately, the appellant was
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constrained to file the writ petition before the High Court by way of Writ
Petition No.3224 of 2013. At the time of hearing of the aforesaid writ
petition, it was submitted that during the pendency of the writ petition the
entire terminal benefits have been settled. Therefore, the only issue
remained was in respect of the interest on the delayed payment of
pensionary benefits. Therefore, it was requested on behalf of the
appellant before the learned Single Judge of the High Court that the
action be taken against the erring officers for the delay caused in settling
his dues and that he be paid interest on the delay in payment of retiral
benefits. The learned Single Judge disposed of the writ petition by
order dated 15.07.2020 relegating the petitioner – the appellant to make
a representation to the Director of Collegiate Education to take
appropriate action against the erring officers who had delayed in
settlement of the payment in time. The Director of Collegiate Education
was directed to consider the same and pass appropriate order in
accordance with law after hearing the aggrieved persons as
expeditiously as possible. However, as no order was passed in respect
of the interest on the delayed payment of the retirement benefits, the
original writ petitioner preferred the appeal before the Division Bench by
way of Writ Appeal No.704 of 2020. The Division Bench passed the
following interim order on 09.08.2021:-
"The third respondent herein/The Regional Joint Director
of Collegiate Education, Coimbatore, is directed to go to
the first respondent/C.B.M College, Coimbatore and verify
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the records, in the light of the counter affidavits filed by
the respondents 1 to 3, the third respondent is also
directed to verify as to whether the writ petitioner is paid
with all his retiral benefits and if so, whether they are
disbursed immediately or with the delay. If there is any
delay, the third respondent is further directed to report
before this Court as to the person who is responsible for
the said delay and who is liable to pay the interest for the
belated payment to the writ petitioner/appellant."
2.1 That thereafter when the appeal was taken up for further hearing
on 26.10.2021, it was reported that the Government has conducted an
enquiry and fastened the liability on the College and observed that one
Shri C.M. Ramaraj, the former Secretary of the College was responsible
for the delay in disbursement of terminal benefits to the original writ
petitioner. However, it was pointed out that the former Secretary, Shri
C.M. Ramaraj was unwell and therefore he could not file objections to
the enquiry report. Thereafter the Division Bench of the High Court has
disposed of the said appeal by observing that it is ultimately for the
Government to take an appropriate decision based on the enquiry report.
However, the Division Bench of the High Court also observed that
though the appellant – original writ petitioner shall be entitled to the
interest on the delayed payment, however, the Government is yet to take
a call on who was responsible for the delay and the Division Bench of
the High Court has not passed any further order.
2.2 Feeling aggrieved and dissatisfied with the impugned judgment
and order passed by the Division Bench of the High Court in not passing
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any order in respect of the interest on the delayed payment of retirement
benefits, the original appellant – original writ petitioner has preferred the
present appeal.
3. We have heard the learned counsel appearing on behalf of the
appellant, the learned counsel appearing on behalf of the
Management/Trust and Shri P. Wilson, learned Senior Advocate
appearing on behalf of the respondent No.1.
4. Having heard learned counsel for the respective parties, we are of
the opinion that as there was a delay in making the payment of
retirement benefits and settling the dues for which the appellant
employee is not at all responsible, he is entitled to the interest on the
delayed payment. Even the Division Bench of the High Court has also
observed in the impugned judgment and order that the appellant is
entitled to the interest on the delayed payment. However, there is an
inter se dispute between the Secretary, Management and the
Government as to who is responsible for the delay in making the
payment to the appellant and therefore, he has been denied the interest
on delayed payment though entitled to. It is to be noted that as such
pursuant to the interim order dated 09.08.2021, the Government did
conduct an enquiry and fastened the liability on the college and
observed that the former Secretary, Shri C.M. Ramaraj was responsible
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for the delay in disbursal of the terminal benefits to the original writ
petitioner. In that view of the matter, subject to the further final order that
may be passed by the Government, the College/Management is first
liable to pay the interest on the delayed payment of retirement dues
subject to the final decision, which may be taken by the Government,
after hearing the Management and the former Secretary. However,
because of the inter se dispute between the Management, Secretary
and the Government on who is responsible for the delay in making the
payment and/or settling the dues, the retired employee should not be
made to suffer for no fault of his.
5. In view of the above discussion and for the reasons stated above,
present Appeal Succeeds. The impugned judgment and order passed
by the Division Bench of the High Court and that of the learned Single
Judge denying the interest on delayed payment of retirement benefits to
the appellant is hereby quashed and set aside. The Management /
Trustees / College are hereby directed to pay the interest on the delayed
payment of retirement benefits to the Appellant, from the date of
retirement till the actual payment was made, subject to the final decision
that may be taken by the Government on the objections to the enquiry
report that may be filed by the former Secretary and/or the College and it
will be open for the College / Management / Trustees to recover the
same from the person, who, ultimately is held to be responsible for the
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delay. The payment of interest on delayed payment of retirement
benefits to be paid strictly within a period of six weeks from today. In the
meantime, the Government to pass a final order on the enquiry report
after giving an opportunity to the College / Management / former
Secretary. It goes without saying that it would be open to the aggrieved
party to challenge the said decision before the appropriate forum.
Present appeal is accordingly allowed to the aforesaid extent.
Pending applications, if any, also stand disposed of.
………………………………….J.
[M.R. SHAH]
NEW DELHI; ………………………………….J.
MARCH 04, 2022. [B.V. NAGARATHNA]
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