JUDGEMENT
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(1.) THE appellant 'sunsatisfied claim for 18% per annum interest on delayed payment of pension and gratuity has culminated into this appeal. The appellant had retire from the
Government service on 31.1.1998 on attaining age of superannuation. Admittedly the retiral dues
were paid to him in the month of July 2001 i.e. after the delay of more than three years. According
to the appellant, the Pension Payment Order (P.P.O.) dated 16.2.1999 was issued by the
Accountant General, Bihar with a condition of recovery of the amount of pay and allowances of
certain period from the appellant which according to him were legally paid to him. The appellant
immediately protested against the said condition of recovery by making representation against the
said pension payment order. Against the said P.P.O. the petitioner had filed a writ application
being C.W.J.C. No. 521/2000 before the Patna High Court. The writ petition was disposed of by
order dated 5.2.2001 with direction to the respondents to hear the petitioner and pass speaking
order. The appellant then filed representation before the Accountant General, Bihar which was
considered and revised P.P.O. was issued on 9.7.2001 and the appellant 'spension and
gratuity were paid. The appellant thereafter claimed 18% per annum interest on the delayed
payment of his retiral benefit which was not heeded upon. The appeUant then filed W.P.(S) No.
2676/2002 seeking direction to the respondents to pay interest on the delayed payment of his retiral dues. The respondents contested the appellant 'sclaim contending that there was no
fault on the part of the respondent and the petitioner had himself challenged the P.P.O. and did
not draw the payment on that basis. The learned Single Judge accepting the respondent 's
contention dismissed the claim of the appellant on the ground that the delay in releasing the retiral
due (sic) deliberate from the side of the respondents and the delay was under unforeseen
circumstance. The said order of the learned Single Judge is under challenged in this appeal.
(2.) WE have heard Mr. Ram Kishore Prasad, learned counsel appearing on behalf of the appellant and Mr. S. Srivastava, learned counsel appearing on behalf of the Accountant General as also the
learned G.P. -IV appearing on behalf of the State -respondents. It is an admitted fact that the
petitioner retired from Government service on 31.1.1998 and one Pension Payment Order (P.P.O.)
was issued by the Accountant General dated 16.2.1999 wherein there was a condition of recovery
of the certain amount paid to the appellant towards pay and allowances which according to him
was legally paid. It is admitted that the appellant protested against the same and ultimately filed a
writ application C.W.J.C. No. 521/2000 and on the direction passed in the said writ application, the
Accountant General, Bihar considered the objection and issued a revised P.P.O. dated 29.7.2001
revalidating the same order but without any condition of recovery from the appellant.
From the said admitted position, it is evident that earlier P.P.O. issued in the year 1999 was wrong and improper. The appellant was not obliged to accept the said wrong Pension Payment
Order and his refusal can not be said to be unjustified. The appellant had to suffer due to the said
impugned Pension Payment Order which was admittedly corrected after a long delay, when a
direction was issued in C.W.J.C. No. 521/2000. The appellant was thus deprived of his due retiral
benefits for years together and he had to suffer loss and harassment for the fault on the part of the
respondents. The State Government has issued circulars from time to time providing reliefs to the
retired Government servant and making provisions for payment of compensatory interest on
delayed payments of pension and gratuity. One such circular was issued as far back as in the year
1981 by Memo No. P.P.O. 2/1/16/79/3/155, dated 7.11.1981, which provides that interest shall be allowed on delayed payment of all kinds of pension and D.C.R. gratuity at the rate of 5% per
annum for the period beyond three months after pension/D.C.R. gratuity becomes due and shall
be payable till the end of the preceding month in which the payment of final pension and gratuity
begins and on the payment of D.C.R/ Gratuity is actually made. In view of the above circular, the
appellant is at least entitled to get interest at the rate of 5% per annum with effect from 1.4.1999 i.
e. after 90 days of his retirement on 31.1.1998 till the preceding month of the actual payment of
the said retiral dues to the appellant.
(3.) THE learned Single Judge has not taken into consideration the said circumstances and the circular of the Government while dismissing the writ application of the appellant. Admitted
correction of the Pension Payment Order goes to prove that the fault was on the part of the
respondents and for that the appellant cannot be made to suffer.;
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