Delayed disbursement of statutory welfare fund benefits attracts interest regardless of procedural technicalities.

The applicant’s husband, Late Sh. Kuver Singh, was a Technician-III in the Power Development Department (now JPDCL) who died in service on 16.10.2011

The deceased was a member of the Jammu & Kashmir Power Employees Welfare Fund constituted under the Rules of 2008

Despite the applicant’s representations, the welfare fund benefits were not released for over a decade, prompting her to approach the Tribunal after a previous writ petition was withdrawn with liberty

While other service benefits like pension and gratuity were settled, the respondents initially resisted the Welfare Fund claim on grounds of delay and constructive res judicata

However, during the pendency of this application, the respondents released Rs. 3,00,000/- towards the Welfare Fund

1. Whether the applicant is entitled to benefits under the J&K Power Employees Welfare Fund Rules, 2008, and whether procedural technicalities or constructive res judicata bar such a claim

2. Whether the respondents are liable to pay interest on the delayed disbursement of the Welfare Fund amount

The court primarily applied the Jammu & Kashmir Power Employees Welfare Fund Rules, 2008, specifically Rules 4(a) and 4(b), which mandate the administration and disbursement of funds to dependents of deceased members

It relied on the principle that welfare legislation and beneficial schemes must be interpreted to provide relief rather than be defeated by procedural technicalities

Furthermore, the court applied the "Model Employer" doctrine and the established legal principle that interest is payable as compensation when legitimate payments are withheld without justification

The Tribunal observed that the applicant’s status as a rightful beneficiary was undisputed, as her husband was a contributing member of the fund

It rejected the respondents' plea of constructive res judicata, noting that the cause of action regarding a continuing statutory entitlement in welfare legislation cannot be barred by such doctrines

The Tribunal found the delay of 14 years (from 2011 to 2025) to be a result of administrative apathy and negligence, especially since the payment was only released after legal proceedings commenced

It reasoned that since the Welfare Fund's purpose is to provide immediate assistance to bereaved families, the inordinate delay necessitated the award of interest to compensate the applicant for the loss of use of the funds

It held that the applicant is entitled to all admissible benefits under the 2008 Rules and directed the respondents to pay interest at 6% per annum on the Welfare Fund amount of Rs. 3,00,000/- from the date of entitlement until the date of actual payment

The payment must be made within eight weeks

Additionally, the Tribunal granted the respondents liberty to recover the interest amount from the erring officials responsible for the delay