The Punjab and Haryana high court has held that the office of an employee about to retire is duty-bound to complete all the formalities by the date of superannuation so that pensionary benefits are released on time.
The high court directed chief secretaries of Punjab, Haryana and Chandigarh to issue a circular to the “head of office” regarding timely disbursal of pensionary benefits, immediately after the retirement. The responsibility should be fixed of such heads in case of failure, it asserted.
“…for such a lapse, ignorance, lack of knowledge regarding the rules, which are in existence since long, the head of office should be penalised for delayed payment of pensionary benefits to the employees. The employee should not suffer for the lack of knowledge, ignorance and lethargy of the employer/head of office in not following the (rules),” the bench of justice Sudeepti Sharma observed.
The court was dealing with a petition filed by one Jasbir SIngh in 2023, a retiree from the Punjab water and sanitation department. He superannuated in June 2016 and retiral benefits were released in 2017. When he claimed interest over the delayed payment, the department rejected the same claiming that he was required to submit his documents eight months before his due date of retirement but submitted in August 2016. Hence, delay in disbursal was attributable to him and can’t be granted interest over the delayed amount. It was this order he had challenged in 2023.
The court found that as Punjab Civil Services Rules, it is mandatory upon the head of the office to complete the formalities, eight months prior to the date of retirement of a government employee and the head is duty bound to obtain the necessary documents/pension papers eight months before the date of retirement.
{{/usCountry}}The court found that as Punjab Civil Services Rules, it is mandatory upon the head of the office to complete the formalities, eight months prior to the date of retirement of a government employee and the head is duty bound to obtain the necessary documents/pension papers eight months before the date of retirement.
{{/usCountry}}“…the framers of rules (put in place a detailed procedure) to disburse pensionary benefits immediately after the date of retirement so that the pensioners should not suffer for their livelihood. The framers of rules have categorically given the stages as well, for completion of pension papers. And the object and reasoning behind these rules is that no employee should suffer delayed payment of retiral benefits, that is why the exercise of preparing (various documents) is done within 24 to 30 months before the date of retirement of every employee,” the court recorded, adding that governments claim often is that there was delay on the part of employee but fact remains that they are duty bound to start the procedure for collecting/obtaining papers from the employee almost two years prior to the date of his retirement.
The court further added that any delay which is caused in disbursal of retiral benefits cannot be attributed to the employee unless and until it is shown by the employer that they called for the papers and tried to obtain the papers from the employee but the employee did not deliver the papers on time.
The court held the petitioner retiree entitled for 9 percent interest for delay in payment of all the retiral benefits and directed the registrar general of high court to send copy of the judgment to chief secretaries of Punjab, Haryana and Chandigarh for necessary compliance.