PERMOD KOHLI,J. - (1.) VIDE order dated 09th March, 2005, a direction was issued to the Respondents to pay the admitted retiral dues alongwith interest. It was further observed that if any further amount is found payable, then appropriate order shall be passed for payment of admitted retiral dues together with interest. It has been reported by the learned Counsel appearing for the parties that all retiral dues have been paid except the interest on the retiral dues, from the date of retirement till the date of payment.
(2.) MR . R. Krishna, learned Counsel appearing for the Respondent -Board, submitted that interest on G.P.F. is payable only up to six months after the month in which such amount became payable. He has relied upon Rule 14(4) of the Bihar G.P.F. Rules, 1938, which reads as under: 14 (4) In addition to any amount to be paid under Rules 29, 30, or 31, interest thereon upto the end of the month preceding that in which the payment is made, or upto the end of the sixth month after the month in which such amount became payable, whichever of these periods be less shall be payable to the person to whom such amount is to be paid: Provided that where the Accounts Officer has intimated to that person (or his agent) a date on which he is prepared to make payment in cash, or has posted a cheque in payment to that person interest shall be payable only upto the end of the month preceding the date so intimated, or the date of posting the cheque, as the case may be.[Note. - Interest may be paid on sums at the credit of the subscribers in the fund for any period beyond six months and the following officers will be competent to authorize such payments: (i) Subscribers whose Provident Fund Account is maintained by Accountant -General, Bihar -Accountant General, Bihar. (ii) Subscribers whose Provident Fund Account is not maintained by Accountant General, Bihar - Finance Department: Provided that the competent authority has personally satisfied himself that the delay in payment was occasioned by circumstances beyond the control of the subscriber of the person whom such payment was to be made and in every such case the administrative delay involved in the matter has been fully investigated and action, if any required taken. The note appended to the Rule, however, permits the payment of interest beyond six months, if the a clay in making the payment is not attributable to the employee, under the orders of the officers mentioned, therein. Therefore, there is no bar in payment of interest beyond six months particularly when there has been delay on the part of the employer or any other person liable to pay the G.P.F. Interest on delayed payment is in the nature of compensation and becomes payable on account of wrong withholding of the legitimate dues. From the provisions of Rule 14(4), it is apparent that there is no prohibition for payment of interest beyond six months. A similar view was expressed by this Court in the case of Chander Mehta v. Jharkhand State Electricity Board and Ors. reported in 2006 (1) JLJR 48 Learned Counsel appearing for J.S.E.B., with reference to Rule 14(4) of the Bihar G.P.F. Rules, submitted that interest was payable only for a period of six months from the date of retirement, if it was not paid within six months, but he could not show anything that as per the proviso to the said rule, the Accounts Officer intimated the petitioner a date on which he is prepared to make payment in cash or has posted a cheque to the petitioner. In my view, in the facts of this case, statutory interest on G.P.F. amount should be paid up to the month preceding the receipt of GPF by the petitioner.
(3.) IN view of the above circumstances, the contention of the learned Counsel appearing for the Respondents cannot be accepted. Petitioner is also entitled to interest on delayed payment of Gratuity on the same principles as also in accordance with the provisions of Section 7(3A) of the Payment of Gratuity Act, 1972, if the amount is not paid within 30 days from the date, it becomes payable. In view of these provisions of law, petitioner is found entitled to interest from one month after the retirement till the amount is actually paid.;