Retiree has a right to get retiral benefits within a reasonable period of three months

Punjab and Haryana High Court:  A Single Judge Bench comprising of Jaspal Singh, J. directed the State to compensate the petitioner by way of interest for delayed payment of retiral benefits.

The petitioner had received the retiral benefits after an inordinate delay, for which no interest was paid. He sought payment of interest on the delayed payment at the rate of 18% per annum.

The High Court perused the record and found that there was indeed a delay as alleged by the petitioner. The Court referred to the instructions issued by the State of Punjab and held that as per the instructions, the retiree was entitled to the interest if the retiral benefits are not disbursed to him within a period of three months from the date of his retirement. In the case at hand, in fact, there was much more delay. Accordingly, the Court thought it fit to grant the petitioner the interest on delayed payment at the rate of 9% per annum. [Paramjit Singh v. State of Punjab, 2018 SCC OnLine P&H 908, dated 02-07-2018]

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