University must pay 12.5% compound interest on Group Insurance Scheme dues as per binding judicial precedents.

The petitioner, a retired employee, filed a writ petition seeking the payment of interest on Group Insurance Scheme (GIS) dues.

The petitioner's claim was based on a prior judgment of a coordinate Bench of the Patna High Court in CWJC No. 8700 of 2017.

The University contested the rate of interest, arguing that while they initially paid 12.5% compound interest, a subsequent decision by the University’s Statutory Body reduced the rate to 4% simple interest effective March 2002 due to lower bank returns.

The University further contended that the GIS scheme ended on December 1, 2018, and expressed an intention to file a modification petition regarding the earlier court order.

1. Whether the University is bound to pay compound interest at the rate of 12.5% on Group Insurance Scheme (GIS) dues as per the existing judicial precedent in CWJC No. 8700 of 2017.

The court applied the principle of judicial discipline and the binding nature of orders passed by coordinate Benches.

The court relied on the directions issued in CWJC No. 8700 of 2017, which established the requirement to extend compound interest on GIS at the rate of 12.5%.

The court held that internal administrative resolutions cannot override a persistent High Court order unless that order is formally clarified or modified by the Court.

The court observed that the judgment in CWJC No. 8700 of 2017, dated January 24, 2018, explicitly directed the payment of 12.5% compound interest.

Although the University argued that its financial incapacity and statutory body decisions justified a lower rate of 4%, the Court found that the University had neither placed those decisions on record nor successfully moved a modification application to alter the 2018 ruling.

Since the original order "still holds the field," the Court determined that the Registrar and Finance Officer had no legal option but to comply with the 12.5% rate.

A cheque for Rs. 3,62,398/- was handed over in court, and the petitioner was granted liberty to file a representation within two weeks if the calculations remained deficient.

The Court held that all payments remain subject to the final outcome of any modification application the University may file in the future regarding the parent judgment.