Meghalaya High CourtSocial Security and PensionsEmployment and Labour Law

Meghalaya HC Denies Retired School Staff Interest For Pre-Sanction Wait On ₹6.5 Lakh Gratuity Top-Up

HASSAIN ALI SARKERv.THE STATE OF MEGHALAYA AND ORS.

Meghalaya HC Denies Retired School Staff Interest For Pre-Sanction Wait On ₹6.5 Lakh Gratuity Top-Up. HASSAIN ALI SARKER vs THE STATE OF MEGHALAYA AND ORS.. Meghalaya High Court. LawLens
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In brief

The question

1. Whether the appellants were entitled to interest on the enhanced DCRG for the period between Government approval of the enhancement and the subsequent sanction for payment

The court held

The Court answered both issues against the appellants: interest was not payable for the period between approval and sanction, and payment within one month after sanction did not warrant interest on these facts.

It also directed

It dismissed all four appeals

01Facts

The appellants, including the widow of a retired teacher, sought the enhanced balance of their Death-cum-Retirement Gratuity (DCRG).

The Government approved an increase in the DCRG ceiling from ₹3.50 lakh to ₹10 lakh with effect from 1 January 2017; the approval was conveyed on 19 March 2025

p. 4 · ¶ 5

After the appellants sought the balance amount and filed writ petitions, the Government sanctioned payment on 28 January 2026. The balance of ₹6.50 lakh was paid on 27 February 2026, within a month of sanction

p. 5 · ¶ 6–7 · p. 6 · ¶ 11 · p. 7 · ¶ 12

The Single Judge disposed of the writ petitions without awarding interest, and the appellants appealed only against the denial of interest

p. 5 · ¶ 8 · p. 6 · ¶ 9

02Issues

i.1. Whether the appellants were entitled to interest on the enhanced DCRG for the period between Government approval of the enhancement and the subsequent sanction for payment

p. 7 · ¶ 13–15

ii.2. Whether interest was payable for any delay in payment after sanction was accorded

p. 7 · ¶ 15–16

03Law Applied

The Court held that interest on delayed payment of DCRG is to be considered from the date sanction is accorded; whether interest is payable for delay after that date depends on the duration of the delay and the relevant facts and reasons

p. 7 · ¶ 15

Interest does not accrue merely for the period between policy approval and the grant of sanction

p. 7 · ¶ 15

The Court considered D.D. Tewari (Dead) through Legal Representatives v. Uttar Haryana Bijli Vitran Nigam Limited & Ors., (2014) 8 SCC 894, but held that the proposition advanced by the appellants was not covered by that decision

p. 7 · ¶ 13–14

No statute or specific statutory provision was cited.

04Reasoning

Although the enhancement had been approved in March 2025, sanction for payment was not accorded until January 2026. The Court distinguished the approval of the enhanced ceiling from the sanction authorising payment and held that interest could not be awarded for the intervening period

p. 7 · ¶ 10–15

Because the enhanced amount was paid within one month after sanction, the facts did not warrant interest for post-sanction delay either

p. 8 · ¶ 15

D.D. Tewari did not alter that conclusion because it did not govern the appellants’ claim for interest between approval and sanction

p. 7 · ¶ 14

05Holding

The Court answered both issues against the appellants: interest was not payable for the period between approval and sanction, and payment within one month after sanction did not warrant interest on these facts.

p. 8 · ¶ 15–16

It dismissed all four appeals

p. 8 · ¶ 15–16
Meghalaya High Court

Original Court PDF

HASSAIN ALI SARKERvsTHE STATE OF MEGHALAYA AND ORS.

Meghalaya High Court · November 06, 2026

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