SUPREME COURT OF INDIA 

 

Vijay L. Mehrotra

 

Vs.

 

State of U.P.

 

C.A.No.687 of 2000

 

(B. N. Kirpal and S. Rajendra Babu, JJ.)

 

31.01.2000

 

ORDER

 

1. Special leave granted limited to the question of granting of interest.

 

2. The appellant retired from service on 31st August, 1997. From the response filed by the respondent, it is clear that most of the payments of the retiral benefits to her were made long after she retired on 31st August, 1997. The details of the payments so made are as under :

           

                                                                                                                                                                                          Sl. No.                                                                                                                                                                                           Particulars                                                                                                                                                                                                  Amount paid                                                                                                                                                                                               Date    

i)          G.P.F. 90%      Rs.  1,80,899.00          27-11-1997    

ii)         G.P.F. 10%      Rs.     20,751.00          25-04-1998    

iii)         G.I.S.   Rs.     13,379.00          27-02-1998    

iv)        Encashment of leave     Rs.     41,358.00          27-09-1998    

v)         Arrears of pay Rs.     15,495.00          27-09-1998    

vi)        Gratuity            Rs.  1,09,753.00          05-12-1998    

vii)        Commuted pension       Rs.     20,484.00          05-12-1998    

viii)       Detained amount           Rs.     45,000.00          05-11-1999    

                                                                                                                                                                                                     

3. In case of an employee retiring after having rendered service, it is expected that all the payment of the retiral benefits should be paid on the date of retirement or soon thereafter if for some unforeseen circumstances the payments could not be made on the date of retirement.

 

4. In this case, there is absolutely no reason or justification for not making the payments for months together. We, therefore, direct the respondent to pay to the appellant within 12 weeks from today simple interest at the rate of 18 per cent with effect from the date of her retirement, i.e., 31st August, 1997 till the date of payments.

 

5. The appeal is allowed to the above extent.

 

Order accordingly.