Himachal Pradesh High Court Orders Recovery Of Interest On Delayed Pension Payment From Responsible Public Officers

Justice Satyen Vaidya noted that these authorities hold public funds in trust and should not be allowed to waste public money through unjustified delays as it can significantly impact public welfare programs.

The observations came while hearing the plea of a Medical Officer, who after dedicating almost three decades to public service had retired on August 24, 2021. As per the Central Civil Services (Pension) Rules, 1972, he was entitled to receive various retirement benefits, including a pension, gratuity, leave encashment, and more. However, the petitioner was compelled to approach the court on April 8, 2022, as he had not received his dues even after an agonizing eight months of waiting.

Justice Vaidya court noted with concern that the petitioner had to wait for two years after retirement to receive his full retirement benefits. Despite serving for nearly 29 years, the petitioner's retirement dues remained unpaid, and the government could not provide a clear timeline for their disbursement, it added.

“The picture that emerges is quite dismal and painful. Two years have elapsed since the retirement of the petitioner; he has not been disbursed his entire dues till date. A substantial amount still remains to be paid to him. The State Government has not yet been sure about the timeline within which it will be able to discharge the liability”, the bench remarked.

The court also referred to Dr. A. Selvaraj vs. CBM College and others 2022 in which the court ruled that a retired employee, not responsible for payment delays, is entitled to interest on delayed payments.

Noting that instances of delay in payment of pension are on the rise, Court held, “The public authority, responsible for discharge of duties with promptitude, after failed to do so, should not go scot-free, without being made accountable for its lapses. They hold the public funds in ‘trust’. The public money cannot be allowed to be wasted by unjustified delays caused by the public authority(ies) in discharge of their duties”.

It therefore directed that the interest payable to the petitioner on pension arrears be recovered from responsible public officers, to be identified by the State Principal Secretary (Health) by conducting an inquiry.

Case Title: Dr. Vinay Patyal Vs State of Himachal Pradesh and others

Citation: 2023 LiveLaw (HP) 67

Case No: CWP No. 2258 of 2022

Click Here To Read/Download Judgment