Facts
The Applicant, a Postal Assistant at Baruipur H.O., retired from service on 29.02.2024.
Source reference: para 7Shortly before his retirement, he was served with a charge-sheet dated 22.02.2024.
Source reference: para 7He challenged this charge-sheet in a previous application (O.A. 350/1433/2024), which was disposed of as infructuous on 06.11.2024 after the Respondents chose to withdraw the impugned charge-sheet.
Source reference: para 11, 12Following the withdrawal, the Respondents sanctioned the Applicant's Leave Encashment (Rs. 7,44,000/-) on 05.06.2025 and credited his Death-cum-Retirement Gratuity (DCRG) (Rs. 9,30,000/-) on 21.02.2026.
Source reference: para 4, 10, 6The Applicant filed the current original application seeking interest on the delayed disbursement of these retiral benefits.
Source reference: para 2, 7Issues
Whether an employee is entitled to interest on the delayed payment of Leave Salary and DCRG when disciplinary proceedings are initiated just before retirement and subsequently withdrawn.
Source reference: para 13Law Applied
The Tribunal adjudicated the matter under Section 19 of the Administrative Tribunals Act, 1985.
Source reference: para 2Leave Salary is a statutory entitlement that must be released even during the pendency of disciplinary proceedings.
Source reference: para 13Once a disciplinary hurdle (such as a charge-sheet) is removed via withdrawal, the state is liable to compensate the employee for the delayed payment of retiral benefits through the grant of interest.
Source reference: para 13, 14Reasoning
The Respondents argued that the delay in payment was justified due to the pendency of the disciplinary proceedings.
Source reference: para 8The Tribunal rejected this contention, noting that the Respondents had failed to file a reply to the OA despite being granted multiple opportunities.
Source reference: para 3, 10The Tribunal reasoned that because Leave Salary is not legally contingent upon the outcome of disciplinary proceedings, its withholding from the date of retirement was unauthorized.
Source reference: para 13Regarding the DCRG, while its withholding might have been initially linked to the charge-sheet, the liability to pay interest arose the moment the charge-sheet was withdrawn (06.11.2024), as there was no longer any legal justification for further delay.
Source reference: para 13-14The Tribunal concluded that the Applicant could not be made to suffer financial loss for proceedings that were ultimately abandoned by the department.
Source reference: para 14Holding
The Tribunal partially allowed the OA and directed the Respondents to pay interest at the rate of 6% per annum on the delayed benefits.
Interest on DCRG at 6% p.a. from the date the charge-sheet was withdrawn (06.11.2024) until the date of actual payment; Interest on Leave Salary at 6% p.a. from the date of retirement (29.02.2024) until the date of actual payment.
Source reference: para 14The Respondents were directed to complete the calculation and payment within two months of receiving the order.
Source reference: para 14Original Court PDF
Ranajit Kumar KayalvsDEPTT OF POSTS
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