Interest is payable on delayed retiral benefits from the date of submission of the legal heir certificate.

The applicant is the husband of late Najma Sultan, who served as a Principal at an MC Primary School and passed away on April 28, 2022

Following her death, the applicant sought the release of death-cum-retirement benefits, including Leave Encashment, Death-cum-Retirement Gratuity (DCRG), Group Insurance Scheme (GIS), General Provident Fund (GPF), and Deposit Linked Insurance (DLI)

While partial payments were eventually made, there were significant delays ranging from 7 to 17 months

The respondents admitted to the delay in GPF payments, attributing it to "missing entries" and un-reconciled accounts

The applicant filed the present Original Application (OA) seeking the immediate payment of remaining dues and penal interest on delayed amounts

1. Whether the respondents are liable to pay interest on the delayed disbursement of death-cum-retirement benefits

2. Whether the responsibility for "missing entries" in a GPF account rests with the employee or the employer for the purpose of determining liability for delay

3. What constitutes the appropriate "reckoning date" for calculating the period of delay in such cases

The Tribunal relied on the settled law established by the Hon’ble Supreme Court, which mandates that family members of deceased employees are entitled to receive all terminal benefits immediately upon the submission of requisite documentation

The court further applied the principle that the maintenance of GPF accounts is the administrative responsibility of the employer, as subscriptions are deducted directly from the salary

Finally, the Tribunal applied the principle of equity regarding interest, holding that delay in statutory payments warrants compensation at the applicable GPF interest rate

The Tribunal noted that the respondents did not dispute the family’s entitlement to the benefits

Regarding the GPF delay, the Tribunal specifically rejected the respondents' attempt to blame the deceased employee for failing to reconcile her account, clarifying that because GPF is deducted from the salary bill by the employer, the burden of maintaining accurate records lies solely with the department

In analyzing the timeline, the court observed that while the applicant claimed documents were submitted in June 2022, the respondents were uncertain of the exact date

Consequently, the Tribunal determined that the date of submission of the legal heir certificate serves as the trigger point for the employer’s obligation to process payments

For DLI, the delay was tied to the date the beneficiaries provided their signatures

The Tribunal disposed of the OA with specific directions: (ii) Delay for DLI shall be calculated from the date the beneficiaries submitted their signatures; (iii) Respondents are directed to pass a speaking order within four weeks and complete the entire exercise within eight weeks; and (iv) Respondents must release all pending dues and pay simple interest at the applicable GPF rate for the period of delay

No order as to costs was made