IN THE 240 Anoop Kumar Gupta Managing Director, Punjab State Federation of Cooperative Sugar Mills Ltd., Chandigarh. CORAM: Present : HARPREET SINGH BRAR 1. of the Constitution of India with a prayer for issuance of an appropriate writ, order or directions espec respondent of the petitioner accrued on account of attaining the age of superannuation along with other consequential benefits withthold by the further to release the interest at the rate of 18%on account of delay in payment of retiral benefits from the date of retirement of the petitioner till the payment is made. 2. that the disciplinary proceedings initiated against the petitioner stands withdrawn and has been substantially redressed 1 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH CWP Date of Decision: Anoop Kumar Gupta VERSUS Managing Director, Punjab State Federation of Cooperative Sugar Mills Ltd., Chandigarh. HON'BLE MR. JUSTICE HARPREET SINGH BRAR Mr. Shiv Kumar, Advocate with Mr. Lovedev Singh, Advocate for the petitioner. Ms. Sunint Kaur, Advocate for the respondent. **** HARPREET SINGH BRAR, J. (Oral) The present writ petition has been filed under Article 226/227 of the Constitution of India with a prayer for issuance of an appropriate writ, order or directions especially in the nature of to release the retiral benefits of encashment of un of the petitioner accrued on account of attaining the age of superannuation along with other consequential benefits withthold by the further to release the interest at the rate of 18%on account of delay in payment of retiral benefits from the date of retirement of the petitioner till the payment is made. Learned counsel for the respondent at the very outset submits hat the disciplinary proceedings initiated against the petitioner stands withdrawn and the grievance made by the petitioner in the present petition has been substantially redressed and the only dispute which survives in the HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH CWP-20474-2022 Date of Decision: August 18, 2025 .....Petitioner VERSUS Managing Director, Punjab State Federation of Cooperative Sugar Mills Ltd., .....Respondent HARPREET SINGH BRAR with Mr. Lovedev Singh, Advocate Sunint Kaur, Advocate for the respondent. The present writ petition has been filed under Article 226/227 of the Constitution of India with a prayer for issuance of an appropriate writ, ially in the nature of mandamus directing the to release the retiral benefits of encashment of un-availed leave of the petitioner accrued on account of attaining the age of superannuation along with other consequential benefits withthold by the respondent and further to release the interest at the rate of 18%on account of delay in payment of retiral benefits from the date of retirement of the petitioner till Learned counsel for the respondent at the very outset submits hat the disciplinary proceedings initiated against the petitioner stands the grievance made by the petitioner in the present petition and the only dispute which survives in the , 2025 .....Petitioner Managing Director, Punjab State Federation of Cooperative Sugar Mills Ltd., .....Respondent with Mr. Lovedev Singh, Advocate The present writ petition has been filed under Article 226/227 of the Constitution of India with a prayer for issuance of an appropriate writ, mandamus directing the availed leave of the petitioner accrued on account of attaining the age of superannuation respondent and further to release the interest at the rate of 18%on account of delay in payment of retiral benefits from the date of retirement of the petitioner till Learned counsel for the respondent at the very outset submits hat the disciplinary proceedings initiated against the petitioner stands the grievance made by the petitioner in the present petition and the only dispute which survives in the PUNEET CHAWLA 2025.08.19 15:50 I attest to the accuracy and integrity of this document present petition is with regard Further, learned counsel petitioner for benefits will be considered by the respondent/competent authority 3. entitled to the interest this Court in 1998 (1) SCT 343 other benefits payable at retirement must be done in a timely manner. Any delay over a period of two months, qua the said disbursement would entitle the retired employee to claim interest on the amount due. Speaking Justice N.K. Sodhi, the following was held: “9. Since a Government employee on his retirement becomes immediately entitled to pension and other benefits in terms of the Pension Rules, a duty is simultaneously cast on the State to ensure the disbursement of pension and other benefits to the retirer in time. circumstances of each case but normally it would not exceed two months from the date of retirement down by the Apex the State commits any default in the performance of its duty thereby denying to the retiree the benefit of the immediate use of his money, there is no gainsaying the fact that he gets a right to be compensated and, in our opinion, the interest for the period of delay on the amount as was due to him on the date of his retirement. Again, as to what should be the rate of interest, it should, circumstances of a particular rate which may extend to even 18%. rendered by the Hon (2008) 3 SCC 44 SCC 429. 2 present petition is with regard to the interest on the delayed payment. Further, learned counsel for respondent for amount of interest on account of delay will be considered by the respondent/competent authority Learned counsel for the petitioner entitled to the interest in terms of the judgment urt in A.J. Randhawa Supg. Engineer (Retd.) vs. State of Punjab 1998 (1) SCT 343 wherein it was opined that disbursement of pension and other benefits payable at retirement must be done in a timely manner. Any delay over a period of two months, qua the said disbursement would entitle the retired employee to claim interest on the amount due. Speaking Justice N.K. Sodhi, the following was held: 9. Since a Government employee on his retirement becomes immediately entitled to pension and other benefits in terms of the Pension Rules, a duty is simultaneously cast on the State to ensure the disbursement of pension and other benefits to the retirer in time. As to what is proper time will depend on the facts and circumstances of each case but normally it would not exceed two months from the date of retirement down by the Apex Court in M. Padmanabhan Nair's case (sup the State commits any default in the performance of its duty thereby denying to the retiree the benefit of the immediate use of his money, there is no gainsaying the fact that he gets a right to be compensated in our opinion, the only way to c interest for the period of delay on the amount as was due to him on the date of his retirement. Again, as to what should be the rate of interest, it should, in our view, be circumstances of a particular case warrant the payment of a higher rate which may extend to even 18%.” Reliance in this regard may also be rendered by the Hon’ble Supreme Court in (2008) 3 SCC 44 and State of Kerala vs. M. Padmanabhan Nair (1985) 1 to the interest on the delayed payment. for respondent submits that the case of the of interest on account of delay in releasing the retiral will be considered by the respondent/competent authority. Learned counsel for the petitioner submits that the petitioner is in terms of the judgment rendered by a Full Bench of A.J. Randhawa Supg. Engineer (Retd.) vs. State of Punjab d that disbursement of pension and other benefits payable at retirement must be done in a timely manner. Any delay over a period of two months, qua the said disbursement would entitle the retired employee to claim interest on the amount due. Speaking through 9. Since a Government employee on his retirement becomes immediately entitled to pension and other benefits in terms of the Pension Rules, a duty is simultaneously cast on the State to ensure the disbursement of pension and other benefits to the retirer in proper As to what is proper time will depend on the facts and circumstances of each case but normally it would not exceed two months from the date of retirement which time limit has been laid in M. Padmanabhan Nair's case (supra). If the State commits any default in the performance of its duty thereby denying to the retiree the benefit of the immediate use of his money, there is no gainsaying the fact that he gets a right to be compensated only way to compensate him is to pay him interest for the period of delay on the amount as was due to him on the date of his retirement. Again, as to what should be the rate of in our view, be generally 12% unless the case warrant the payment of a higher ”(emphasis added) Reliance in this regard may also be placed on the judgments urt in S.K. Dua vs. State of Haryana Kerala vs. M. Padmanabhan Nair (1985) 1 to the interest on the delayed payment. case of the the retiral petitioner is rendered by a Full Bench of A.J. Randhawa Supg. Engineer (Retd.) vs. State of Punjab d that disbursement of pension and other benefits payable at retirement must be done in a timely manner. Any delay over a period of two months, qua the said disbursement would entitle gh 9. Since a Government employee on his retirement becomes immediately entitled to pension and other benefits in terms of the Pension Rules, a duty is simultaneously cast on the State to ensure the proper As to what is proper time will depend on the facts and circumstances of each case but normally it would not exceed two which time limit has been laid ra). If the State commits any default in the performance of its duty thereby denying to the retiree the benefit of the immediate use of his money, there is no gainsaying the fact that he gets a right to be compensated ompensate him is to pay him interest for the period of delay on the amount as was due to him on the date of his retirement. Again, as to what should be the rate of 12% unless the case warrant the payment of a higher placed on the judgments S.K. Dua vs. State of Haryana Kerala vs. M. Padmanabhan Nair (1985) 1 PUNEET CHAWLA 2025.08.19 15:50 I attest to the accuracy and integrity of this document 4. respondent, the present petition is disposed of with a direction to the respondent(s)/competent authority to pay the towards retiral benefits from the date of his retirement till the of his retiral benefits from the date of receiving the certified copy of this order. 5. disposed of. August 18, 2025 P.C 3 In view of the statement made by learned counsel for respondent, the present petition is disposed of with a direction to the respondent(s)/competent authority to pay the retiral benefits from the date of his retirement till the of his retiral benefits at the rate of 6% p.a within a period of from the date of receiving the certified copy of this order. Pending miscellaneous applicat disposed of. , 2025 Whether speaking/reasoned. : Whether Reportable. : In view of the statement made by learned counsel for the respondent, the present petition is disposed of with a direction to the respondent(s)/competent authority to pay the interest on delayed amount retiral benefits from the date of his retirement till the date of release % p.a within a period of three months from the date of receiving the certified copy of this order. Pending miscellaneous application(s), if any, shall also stands (HARPREET SINGH BRAR) JUDGE Yes/No Yes/No the respondent, the present petition is disposed of with a direction to the interest on delayed amount date of release months ion(s), if any, shall also stands (HARPREET SINGH BRAR) PUNEET CHAWLA 2025.08.19 15:50 I attest to the accuracy and integrity of this document