Unjustified Inordinate Delay In Releasing Benefits Entitles Employee To Interest: Punjab & Haryana HC

The bench of Justice Namit Kumar relied on the decision in A.S. Randhawa Vs. State of Punjab where according to the Court it was held, “where there is an inordinate delay in releasing benefits and the delay is not justifiable, employee will be entitled for interest.”

Advocate Shiv Kumar appeared for the Appellant and Advocate Rishabh Kumar appeared for the Respondent.

Brief Facts-

In the present case, the Petitioner joined the Punjab State Cooperative Supply and Marketing Federation (Markfed) and retired after 36 years of service. Despite his eligibility, the Petitioner was not considered for promotion due to pending charge sheets and a registered FIR. The charge sheets were later withdrawn or dropped, and he was acquitted in the criminal case. The Petitioner sought notional promotion to Senior Branch Officer and claimed interest in delayed retiral dues, which were only released late.

The Court relied on the Supreme Court decision in C.O. Arumurgam and others v. The State of Tamil Nadu (1990) and quoted, “…every civil servant has a right to have his case considered for promotion according to his turn and it is a guarantee flowing from Articles 14 and 16(1) of the Constitution. The consideration of promotion could be postponed only on reasonable grounds. To avoid arbitrariness, it would be better to follow certain uniform principles. The promotion of persons against whom charges have been framed in the disciplinary proceedings or chargesheet has been filed in the criminal case may be deferred till the proceedings are concluded. They must, however, be considered for promotion if they are exonerated or acquitted of the charges. If found suitable, they shall then be given the promotion with retrospective effect from the date on which their Juniors were promoted.”

The Court observed, “since the charge- sheets pending against the petitioner have been withdrawn/dropped and in the criminal case, the petitioner has been acquitted, therefore he is also held entitled for interest on the delayed payment of retiral dues as there is a considerable delay in released the same.”

Accordingly, the Court allowed the Petition and directed the Markfed to consider the case of the Petitioner for notional promotion to the post of Senior Branch Officer with all consequential benefits and to pay interest to the Petitioner, on the delayed payment of retiral dues.