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D.D. Tewari through legal representatives v. Uttar Haryana Bijli Vitran Nigam Ltd.

Civil Appeal · Neutral citation not assigned (Civil Appeal No. 7113 of 2014)Decided 1 Aug 2014
Civil Appeal No. 7113 of 2014
Justice Dipak Misra · Justice V. Gopala Gowda

Background

D.D. Tewari retired as a junior engineer in 2006, but his employer withheld pension and gratuity over alleged transformer shortages for which he was later found not negligent. No disciplinary proceedings were pending at retirement. The High Court ordered release of benefits but refused interest, and his legal representatives pursued that issue.

Decision Breakdown

The Court allowed the appeal and awarded nine-percent annual interest on delayed pension and gratuity from entitlement until actual payment. These retirement benefits were enforceable rights rather than discretionary gifts, and the unjustified withholding required compensation for delay. If the ordered amount was not paid within six weeks of receipt of the judgment, it would carry eighteen-percent annual interest from the date the amount originally fell due. The Court declined to impose a further statutory penal amount for gratuity in the particular circumstances.

Lesson Learnt

Wrongfully withheld pension and gratuity can attract interest for the period of delay. A direction to pay the principal alone may leave the retiree or heirs entitled to further relief.

Official source (sci.gov.in)View Judgment (PDF)

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