DR. A. SELVARAJ versus C.B. M. COLLEGE AND ORS.

DR. A. SELVARAJ versus C.B. M. COLLEGE AND ORS.

The appellant was entitled to interest on delayed payment of retirement benefits; the College/Management/Trustees were directed to pay interest from date of retirement till actual payment within six weeks, subject to the Government's final decision on the enquiry report, and the College/Management may recover the amount from the person ultimately held responsible.

Parties
Appellant: Dr. A. Selvaraj; Respondent: C.B.M. College
Jurisdiction
India
Judgment Date
04 March 2022
Procedural Posture
Civil Appeal / Appeal to the Supreme Court Against Judgment and Order of the High Court of Madras in W.a. No. 704 of 2020
Outcome
Appeal allowed
Legal Topics
Retirement Benefits, Interest on Delayed Payment, Delay/laches, Government Enquiry
Labour and Employment Administrative Law Civil Procedure Retirement Benefits Interest on Delayed Payment Delay/laches Government Enquiry

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Parties

Dr. A. Selvaraj

Appellant

C.B.M. College

Respondent

Procedural Posture

Civil Appeal / Appeal to the Supreme Court Against Judgment and Order of the High Court of Madras in W.a. No. 704 of 2020

Legal Issues

  1. 1 Whether the appellant was entitled to interest on delayed payment of retirement/pensionary benefits
  2. 2 Who (College/Management/Secretary/Government) is liable for delay in making payment of retirement dues and interest
  3. 3 Whether the retired employee should suffer due to inter se dispute between Management, Secretary and Government

Ratio Decidendi

The appellant was entitled to interest on delayed payment of retirement benefits; the College/Management/Trustees were directed to pay interest from date of retirement till actual payment within six weeks, subject to the Government's final decision on the enquiry report, and the College/Management may recover the amount from the person ultimately held responsible.

Court Disposition

Appeal allowed

Orders

  • The impugned judgments of the High Court (Single Judge and Division Bench) denying interest on delayed payment of retirement benefits are quashed and set aside.
  • The Management/Trustees/College are directed to pay the interest on the delayed payment of retirement benefits to the appellant from the date of retirement till actual payment, subject to the final decision to be taken by the Government on the enquiry report.