Harsh words of the High Court – why Punjab was reprimanded for pension delay
In a recent case, the Punjab and Haryana High Court has reprimanded the State of Punjab and its officials for their negligence and arbitrary behavior in delaying the distribution of pensionary benefits to a retired employee. The court highlighted a “utilitarian approach” by the state and its functionaries, which reflects poorly on their duty and responsibility towards their retired employees.
The case revolved around Daljit Singh Matharu, a section officer who retired on May 31, 2012. Despite having retired more than a decade ago, Matharu faced considerable delay in receiving his rightful pensionary benefits. These delays include nonpayment of annual increases, medical payments, and other retirement dues that should have been processed immediately. The state’s defense, citing the delay in the transfer of the petitioner between several municipalities, was dismissed by Justice Aman Chaudhary, who termed it as a flimsy excuse.
Justice Chaudhary insisted that the delay in distribution of benefits was only because the court had intervened. He noted that it was the court order that jolted the authorities into action, resulting in the petitioner finally getting his dues. This, the court said, was indicative of the apathetic attitude of the state, which had failed to fulfill its obligations until compelled by judicial intervention.
The court’s decision was firmly anchored in the precedents set by the previous judgments of the Supreme Court and the High Court. Referring to the Supreme Court’s judgment in “State of Kerala v. M. Padmanabhan Nair”, Justice Chaudhary emphasized that pension and gratuity are no longer discretionary rewards to be given to employees at the whim of the government. Rather, they constitute precious rights that must be honored and respected by the state.
The court further clarified that penalty should be imposed for any undue delay in payment of these benefits. The bench ruled that any delay should be compensated by payment of interest at prevailing market rate till the balance is fully disbursed. According to the Full Bench judgment in the case of “AS Randhawa v. State of Punjab”, the Court reiterated that the State is liable to pay interest to the employee to compensate him for delayed distribution of retirement benefits.
Justice Chowdhury’s judgment pointed out the undue delay and undue hardship caused to the petitioner by the apathy and indifference of the state authorities. He criticized the state for failing to provide any valid explanation for the delay, accusing it of being both indecisive and insensitive. The Court took particular issue with the fact that the State had, in effect, unjustly enriched itself by withholding the retiree’s dues, withholding the funds for an extended period without any valid justification. This, the court noted, is an injustice that calls for a remedy.
Before disposing of the case, the bench directed the state and its municipalities to pay interest at the rate of 6 per cent per annum on the delayed pensionary benefits. This interest was to be calculated from the date the payments were actually due until they were actually disbursed. This order sets a strong precedent for holding the state accountable for delay in payment of pensionary and retirement benefits, ensuring that the rights of employees are upheld and their rights are maintained even after they leave public service. be honored
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