Facts
The Petitioner, an Assistant Professor (Class-II), was placed under deemed suspension on July 18, 2018, following the lodging of a criminal case
Source reference: p. 2He was subsequently convicted by a Sessions Court on June 18, 2021, and was formally removed from service on November 11, 2021
Source reference: p. 2Although the Petitioner was entitled to subsistence allowance for the interregnum period between his conviction and removal (June 18, 2021, to November 11, 2021) under statutory rules, the State did not disburse this amount until December 21, 2024—a delay of approximately two years
Source reference: p. 4The Petitioner approached the High Court seeking 12% interest on the delayed payment of the subsistence allowance
Source reference: p. 3Issues
1. Whether a government employee is entitled to interest on the delayed payment of subsistence allowance for the period between conviction and removal from service under the Gujarat Civil Services Rules, 2002
Source reference: p. 4Law Applied
Rule 68 of the Gujarat Civil Services (Joining Time, Foreign Service, Deputation Out of India, Payment During Suspension) Rules, 2002
Source reference: p. 5Specifically, Rule 68(2) mandates that when a government employee is convicted and sentenced to imprisonment, subsistence allowance shall be paid at the normal rate from the date of conviction until the date of removal, dismissal, or reinstatement by the competent authority
Source reference: p. 7-8Reasoning
The Court observed that the Petitioner’s right to receive subsistence allowance during the period following his conviction but prior to his official removal was a settled statutory right under Rule 68(2)
Source reference: p. 8It was undisputed that the actual amount was paid only on December 21, 2024, representing a significant delay for which the Respondent-State could offer no justification
Source reference: p. 4The Court reasoned that since the Petitioner was legally entitled to the funds at the time of his removal in 2021, the withholding of such funds for over two years without cause necessitated the payment of interest to compensate for the delay
Source reference: p. 8Holding
The Court allowed the petition, holding that the Respondents are liable to pay interest due to the unjustified delay in disbursing statutory dues
The Court directed the Respondents to pay interest at the rate of 6% per annum on the delayed subsistence allowance for the period from June 18, 2021, to November 11, 2021, calculated up to the actual date of payment (December 21, 2024)
Source reference: p. 8The payment must be processed within three months of the order
Source reference: p. 8Original Court PDF
SANDEEP VINODKUMAR NATHWANIvsSTATE OF GUJARAT
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