Railway Widow Gets GPF-Rate Interest On Pension Arrears And Shortfalls; CAT Sets Two-Month Deadline

The applicant’s counsel acknowledged at the hearing that the respondents had paid the pension arrears, albeit belatedly.

The applicant sought interest on the delayed payment, contending that the delay was not attributable to her. The respondents attributed the delay to administrative reasons concerning the grant of benefits under the next Pay Commission.

The order cited no statute, regulation, or precedent.

The Tribunal applied the principle that interest may be directed on delayed pension arrears, and on any differential pension paid late, where doing so is considered necessary in the interests of justice. It fixed the applicable rate at the General Provident Fund (GPF) rate.

The Tribunal noted that the arrears had been paid but accepted that payment was delayed. Although the respondents relied on administrative reasons for the delay, the Tribunal considered it just to compensate the applicant through interest.

It extended that direction both to arrears for periods when pension was unpaid and to any differential amount for periods when a lower pension had been paid.

The applicant’s right to seek implementation of the order if payment was not made within that period was reserved. No costs were awarded.