Interest is payable on gratuity delayed by administrative lapses, but not on other retiral dues.

The applicant, a Junior Works Manager (Technical), retired on 31 July 2018 while departmental proceedings initiated under Rule 14 of the CCS (CCA) Rules, 1965 were pending.

On retirement, the proceedings continued under Rule 9 of the CCS (Pension) Rules, 1972; the applicant received provisional pension, while gratuity, commuted pension and leave encashment were withheld.

The disciplinary authority dropped the charges on 29 October 2019, and the suspension period was treated as spent on duty.

The respondents subsequently paid the applicant’s gratuity, commuted pension, leave encashment and salary for the suspension period.

The applicant sought interest on the delayed payments.

1. Whether the applicant was entitled to interest on delayed payment of gratuity.

2. Whether the applicant was entitled to interest on delayed payment of commuted pension, leave encashment and salary for the suspension period.

Rule 65(1) of the CCS (Pension) Rules, 2021 provides for interest on delayed payment of pension, family pension or gratuity where payment is made later than it became due and the delay is clearly attributable to administrative reasons or lapses.

The Tribunal construed the rule as providing for interest on gratuity, but not on other retiral dues.

The Tribunal noted that the departmental charges had been dropped and that the withheld payments were made after the disciplinary authority’s order, generally within about three months of that order.

Although the applicant claimed that the payments had been delayed for approximately two years from retirement, the Tribunal applied Rule 65(1) to distinguish gratuity from the other claimed dues.

It allowed interest on gratuity but found no provision under the cited rule for interest on commuted pension, leave encashment or salary for the suspension period.

The respondents were directed to pay interest on the gratuity amount at 6% from the date it became due, and to complete the exercise within 90 days of receiving a certified copy of the order.

No interest was awarded on the other claimed payments; there was no order as to costs.