Niranjan Singh Patel v. State Of Madhya Pradesh & Others

Sujoy Paul, J.:— The singular point raised in this writ petition is that the petitioner retired on attaining the age of superannuation on 31.03.2013, but the respondents paid him retiral dues on 06.08.2014 The delay in making payment is solely attributable to the respondents. The petitioner averred about it in para No. 5.7 of the petition. The respondents have filed a sketchy return. No parawise reply has been filed. The only stand taken by the respondents in their reply is that the amount has already been paid. The respondents have not stated a single reason for the delay caused in making the said payment. Thus, respondents are required to pay interest on delayed payment.

2. In (1994) 2 SCC 240 [Union of India v. Justice S.S Sandhawalia (Retd.)] the Apex Court held, when an amount due in favour of an employee is withheld by the employer for the reasons solely attributable to the department, the department shall pay interest.

3. In view of aforesaid, this petition is allowed by directing the respondents to pay 12% interest from due date till the date of actual payment. The aforesaid exercise may be completed within 90 days' from the date of communication of this order.

4. Petition is allowed. No cost.