Allahabad HC Calls Out State's "Apathy" For Causing 14 Yrs Delay In Disbursing Retiral Dues To Family Of Deceased, Orders 8% Interest

While deciding a case related to retiral dues of a deceased government employee, the Allahabad High Court has held that no cause had been given by the state for an inordinate delay from 2005 in making the payment and that this was actually caused by the “apathy” of the respondents.

The Court held that the state is liable to pay an interest of 8% per annum on such dues which had not been disbursed due to its own .

Justice Ajay Bhanot relied on the decision of the Allahabad High Court in Yogendra Singh v. State of U.P. to hold that in such a situation, the family of the deceased could not be troubled by “overbearing officials”, and that the state was liable to pay interest on the delay in payment.

Factual Background

Petitioner's husband passed away while he was still under the employ of the State of Uttar Pradesh. His No Dues certificate was issued and verified in 2005, however, no retiral dues were paid to the petitioner. Aggrieved, she filed a writ petition in the year 2019.

Despite directions being issued in her favour, the authorities chose not to follow them. In response, the petitioner instituted a contempt petition in which she was finally awarded the dues on 23.12.2019. However, no interest was granted on the delayed payment. In pursuit of the same, the petitioner filed the present writ petition.

High Court Verdict

The Court stated that as per the records, the petitioner had originally asked for release of the provident fund and family pension, on 18.08.2005.

“The death of an employee renders the family destitute in more ways then[sic] one. Apart from losing emotional anchor, the sole bread earner was also lost by the family,” held the Court.

The Court held that in such circumstances, it was the responsibility of the State to discharge their duty with “promptitude and empathy as per the law”, which was not the case in the present scenario. Thus, as per the decision in Yogendra Yadav, the Court held that the state was liable to pay interest for the delayed payment.

“If there is any delay in the payment of retiral benefits and pension, the employee shall be entitled for the interest at the current market rate with effect from the date of his/her retirement till the date of actual payment. The interest on delayed payment shall be paid by the State Government,” held the Court in Yogendra Yadav v. State of U.P.

Accordingly, the Court directed that the respondents were liable to pay an interest of 8% per annum for the period from 18.05.2005 till 23.12.2019.

Case Title: Smt. Krishnawati v. State of U.P. and 3 Ors. [WRIT - A No. - 12642 of 2020]

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