The Meghalaya High Court has held that retired school employees are not entitled to interest on enhanced Death-cum-Retirement Gratuity (DCRG) for the period between government approval of the enhanced gratuity ceiling and the subsequent grant of financial sanction.

The Court clarified that interest on delayed payment can be considered only if the authorities fail to release the amount expeditiously after sanction is accorded.

Division Bench of Chief Justice Revati Mohite Dere and Justice W.Diengdoh remarked that: “Interest cannot be given from the date of approval of the policy till sanction is accorded. Once sanction is accorded, payment must be made expeditiously. If payment is delayed, the question of interest component would come into the picture.”

The appellants, who were teaching and non-teaching staff of Bhaitbari Higher Secondary School, West Garo Hills, had retired during 2019–2020 and initially received ₹3.50 lakh as DCRG. In March 2025, the Meghalaya Government enhanced the DCRG ceiling to ₹10 lakh with retrospective effect from January 1, 2017.

The appellants sought the remaining ₹6.50 lakh along with interest for the delay. Although the enhanced amount was released on February 27, 2026, following government sanction dated January 28, 2026, the Single Judge declined to grant interest, prompting the present appeals.

The Division Bench held that interest on delayed DCRG payment can be considered only from the date government sanction is accorded, and not from the date of policy approval. It observed that interest may be granted if authorities delay payment after sanction, depending on the duration and reasons for the delay.

Since the appellants received the enhanced ₹6.50 lakh within one month of sanction, the Court found no justification for awarding interest and dismissed all four appeals.

Date of Decision: 06.11.2026