Supreme Court of India

DR. A. SELVARAJ versus C.B. M. COLLEGE AND ORS. on 4 March 2022

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[2022] 1 S.C.R. 749

DR. A. SELVARAJ

v.

C.B. M. COLLEGE AND ORS.

(Civil Appeal No. 1698 of 2022)

MARCH 04, 2022

[M. R. SHAH AND B. V. NAGARATHNA, JJ.]

Retirement dues: Interest on delayed payment of retirementdues – Delay in payment of retirement dues to the Appellant-AssistantProfessor working in the respondent- college despite variouscorrespondence and representation – During the pendency of writpetition, retirement dues were settled – Claim for interest on delayedpayment – Held: As there was delay in making the payment ofretirement benefits and settling the dues for which the appellantwas not at all responsible, he is entitled to the interest on the delayedpayment – Delay/latches.

Allowing the appeal, the Court

HELD: The Division Bench of the High Court had observedin the impugned judgment and order that the appellant was entitledto the interest on the delayed payment. However, there was aninter se dispute between the Secretary, Management and theGovernment as to who was responsible for the delay in makingthe payment to the appellant and therefore, he was denied theinterest on delayed payment though entitled to. As such pursuantto the interim order, the Government did conduct an enquiry andfastened the liability on the college and observed that the formerSecretary was responsible for the delay in disbursal of the terminalbenefits to the original writ petitioner. In that view of the matter,subject to the further final order that may be passed by theGovernment, the College/Management is first liable to pay theinterest on the delayed payment of retirement dues subject tothe final decision, which may be taken by the Government, afterhearing the Management and the former Secretary. However,because of the inter se dispute between the Management,Secretary and the Government on who is responsible for the delayin making the payment and/or settling the dues, the retiredemployee should not be made to suffer for no fault of his.[Para 4][752-C-F]

749

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ACIVIL APPELLATE JURISDICTION: Civil Appeal No. 1698Of 2022.

From the Judgment and Order dated 26.10.2021 of the High Courtof Judicature at Madras in W. A. No.704 of 2020.

M. Gireesh Kumar, Ankur S. Kulkarni, Ms. Puspita Basak, Advs.Bfor the Appellant.

P. Wilson, Sr. Adv., G. Sankaran, K. V. Jagdishvaran, Ms. G. Indira,Ms. Sree Priya, Nishe Rajen Shonker, Ms. Anu K. Joy, Alim Anvar,Advs. for the Respondents.

CThe Judgment of the Court was delivered by

M. R. SHAH, J.

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1. Feeling aggrieved and dissatisfied with the impugned judgmentand order dated 26.10.2021passed by the High Court of Judicature atMadras in Writ Appeal No.704 of 2020 by which the High Court hasDdisposed of the said appeal without granting any relief which was claimed,the original appellant has preferred the present appeal.

2. That the appellant herein is a retired Associate Professor ofChemistry. He retired from the respondent No.1 – C.B.M. College,Coimbatore w.e.f. 30.06.2011. That the institution in which he was servingEis an aided college. There was a delay in paying the retirement/pensionarybenefits, which was not paid despite various correspondences and therepresentations. Ultimately, the appellant was constrained to file the writpetition before the High Court by way of Writ Petition No.3224 of 2013.At the time of hearing of the aforesaid writ petition, it was submittedthat during the pendency of the writ petition the entire terminal benefitsFhave been settled. Therefore, the only issue remained was in respect ofthe interest on the delayed payment of pensionary benefits. Therefore, itwas requested on behalf of the appellant before the learned Single Judgeof the High Court that the action be taken against the erring officers forthe delay caused in settling his dues and that he be paid interest on theGdelay in payment of retiral benefits. The learned Single Judge disposedof the writ petition by order dated 15.07.2020 relegating the petitioner –the appellant to make a representation to the Director of CollegiateEducation to take appropriate action against the erring officers who haddelayed in settlement of the payment in time. The Director of CollegiateEducation was directed to consider the same and pass appropriate orderH

in accordance with law after hearing the aggrieved persons asexpeditiously as possible. However, as no order was passed in respectof the interest on the delayed payment of the retirement benefits, theoriginal writ petitioner preferred the appeal before the Division Benchby way of Writ Appeal No.704 of 2020. The Division Bench passed thefollowing interim order on 09.08.2021:- “The third respondent herein/The Regional Joint Director ofCollegiate Education, Coimbatore, is directed to go to the firstrespondent/C.B.M College, Coimbatore and verify the records,in the light of the counter affidavits filed by the respondents 1 to 3,the third respondent is also directed to verify as to whether thewrit petitioner is paid with all his retiral benefits and if so,whetherthey are disbursed immediately or with the delay. If thereis any delay, the third respondent is further directed to report beforethis Court as to the person who is responsible for the said delayand who is liable to pay the interest for the belated payment to thewrit petitioner/appellant.”

2.1 That thereafter when the appeal was taken up for furtherhearing on 26.10.2021, it was reported that the Government hasconducted an enquiry and fastened the liability on the College andobserved that oneShri C.M. Ramaraj, the former Secretary of the Collegewas responsible for the delay in disbursement of terminal benefits to theoriginal writ petitioner. However, it was pointed out that the formerSecretary, Shri C.M. Ramaraj was unwell and therefore he could notfile objections to the enquiry report. Thereafter the Division Bench ofthe High Court has disposed of the said appeal by observing that it isultimately for the Government to take an appropriate decision based onthe enquiry report. However, the Division Bench of the High Court alsoobserved that though the appellant – original writ petitioner shall be entitledto the interest on the delayed payment, however, the Government is yetto take a call on who was responsible for the delay and the DivisionBench of the High Court has not passed any further order.

2.2 Feeling aggrieved and dissatisfied with the impugned judgmentand order passed by the Division Bench of the High Court in not passingany order in respect of the interest on the delayed payment of retirementbenefits, the original appellant – original writ petitioner has preferred thepresent appeal.

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A3. We have heard the learned counsel appearing on behalf of theappellant, the learned counsel appearing on behalf of the Management/Trust and Shri P. Wilson, learned Senior Advocate appearing on behalfof the respondent No.1.

4. Having heard learned counsel for the respective parties, weBare of the opinion that as there was a delay in making the payment ofretirement benefits and settling the dues for which the appellant employeeis not at all responsible, he is entitled to the interest on the delayedpayment. Even the Division Bench of the High Court has also observedin the impugned judgment and order that the appellant is entitled to theinterest on the delayed payment. However, there is an inter se disputeCbetween the Secretary, Management and the Government as to who isresponsible for the delay in making the payment to the appellant andtherefore, he has been denied the interest on delayed payment thoughentitled to. It is to be noted that as such pursuant to the interim orderdated 09.08.2021, the Government did conduct an enquiry and fastenedDthe liability on the college and observed that the former Secretary, ShriC.M. Ramaraj was responsible for the delay in disbursal of the terminalbenefits to the original writ petitioner. In that view of the matter, subjectto the further final order that may be passed by the Government, theCollege/Management is first liable to pay the interest on the delayedpayment of retirement dues subject to the final decision, which may beEtaken by the Government, after hearing the Management and the formerSecretary. However, because of the inter se dispute between theManagement, Secretary and the Government on who is responsible forthe delay in making the payment and/or settling the dues, the retiredemployee should not be made to suffer for no fault of his.F

5. In view of the above discussion and for the reasons statedabove, present Appeal Succeeds. The impugned judgment and orderpassed by the Division Bench of the High Court and that of the learnedSingle Judge denying the interest on delayed payment of retirementbenefits to the appellant is hereby quashed and set aside. The ManagementG/ Trustees / College are hereby directed to pay the interest on the delayedpayment of retirement benefits to the Appellant, from the date ofretirement till the actual payment was made, subject to the final decisionthat maybe taken by the Government on the objections to the enquiryreport that may be filed by the former Secretary and/or the College andit will be open for the College / Management / Trustees to recover theH

same from the person, who, ultimately is held to be responsible for thedelay. The payment of interest on delayed payment of retirement benefitsto be paid strictly within a period of six weeks from today. In the meantime,the Government to pass a final order on the enquiry report after givingan opportunity to the College / Management / former Secretary. It goeswithout saying that it would be open to the aggrieved party to challengethe said decision before the appropriate forum.

Present appeal is accordingly allowed to the aforesaid extent.Pending applications, if any, also stand disposed of.

Devika Gujral

Appeal allowed.

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