Retired employee acquitted in judicial proceedings entitled to interest on delayed gratuity and pension.

The applicant, Smt. Triptikana Ganguly, a retired employee of BSNL, Calcutta Telephone, superannuated on September 30, 2016.

Due to pending judicial proceedings, her retirement benefits were withheld.

After her acquittal, she submitted representations on December 13, 2019, and August 10, 2020, seeking payment of her retirement benefits.

She filed O.A. No. 350/676/2020, which the Tribunal disposed of on September 25, 2020, directing the competent authority to consider her representation and release benefits, also examining interest on delayed payment.

Despite further representations (April 11, 2021, and May 2, 2021), the benefits were not released, leading her to file O.A. No. 350/01272/2021, disposed of on September 21, 2021, with directions for a reasoned order.

The Principal General Manager (HR & Administration, BSNL) issued an order on November 29, 2021, stating that retirement benefits (Gratuity, Commutation of Pension, Leave Encashment, Arrear Payment) had been paid between March 23, 2020, and April 7, 2021, and she was not entitled to interest as payments were expeditious.

The applicant then sought 18% interest on Rs. 27,39,294/- for delayed payment.

She filed O.A. No. 122/2023, which was disposed of on June 16, 2023, directing respondents to decide on her pending representations.

In response, the Accounts Officer/SR-I/HQ, BSNL, on July 21, 2023, informed her that arrears, pay & allowance, and leave encashment had been paid with 8% interest.

Concurrently, the Office of the Principal Controller of Communication Accounts, Kolkata (Respondent No. 5), on July 25, 2023, denied her claim for interest on delayed pensionary benefits.

1. Whether the applicant is entitled to interest on late payment of retirement benefits, specifically gratuity and arrears of pension, given her eventual acquittal in judicial proceedings.

The court applied Rule 65(5)(c) of the CCS (Pension) Rules, 2021.

This rule stipulates that if a government servant, initially subject to departmental or judicial proceedings at retirement leading to non-payment of retirement gratuity, is subsequently exonerated, interest shall be payable on retirement gratuity and arrears of pension from the date following the expiry of a three-month period from the date of retirement up to the actual payment date.

The Court noted that the applicant retired on September 30, 2016, and her retirement benefits were initially withheld due to pending judicial proceedings.

Upon her acquittal, the pre-condition for withholding benefits ceased to exist.

Applying Rule 65(5)(c) of the CCS (Pension) Rules, 2021, the court determined that since the applicant was exonerated of all charges, she is statutorily entitled to interest on her retirement gratuity and any arrears of pension.

The period for which interest is payable is specifically defined as from three months after her retirement date up to the date of actual payment of these benefits.

The respondents' contention that some benefits were paid with 8% interest or that payments were made expeditiously despite the significant delay from her retirement date of September 30, 2016, until payments were made in 2020 and 2021, was implicitly overruled by the application of this specific rule.

The Tribunal directed the respondents to pay interest to the applicant on her retirement gratuity and arrears of pension, if any, from the date following the expiry of three months from her retirement date (September 30, 2016) up to the date of actual payment of such arrears of pension and gratuity.

The interest rate to be applied is that applicable to deposits under the General Provident Fund Scheme.

There was no order as to cost.