Sakunjay Vyas
Published on: March 05, 2022 at 08:16 IST
The Two Judge Bench of Justice M. R. Shah and Justice B. V. Nagarathna of Supreme Court overturned Madras High Court bench order that denied the interest on delayed payment of retirement benefits to the retired employee.
The Supreme Court recently ruled that the retired employees should not be made to suffer due to government-administrative disputes.
The Bench were hearing an appeal against Madras High Court bench order that denied the interest on delayed payment of retirement benefits to the retired employee, due to the government-administrative disputes.
The Apex Court was befuddled to note, the High Court, Division Bench while deciding the appeal of the retired employee did not pass any order in respect of the interest on the delayed payment of retirement benefits, after analyzing the interim order, the government did find out the person responsible for the delay yet no order was passed.
The Apex Court is of the view that in respect of the final order passed by the Government, the college or the management is the first authority liable to pay the interest on the delayed payment of retirement dues i.e. subjected to the final decision of the Government.
“…subject to the further final order that may be passed by the Government, the College/Management is first liable to pay the interest on the delayed payment of retirement dues subject to the final decision, which may be taken by the Government, after hearing the Management and the former Secretary.”
the Court said.
As a result, the Apex Court overturned the Madras High Court bench order that denied the interest on delayed payment of retirement benefits to the retired employee, due to the government-administrative disputes by directing the administrative department to pay the interest on the delayed payment of retirement benefits to the Appellant, from the date of retirement till the actual payment was made, provided the payment is subjected to the final decision of the Government.
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