High Court of KeralaSingle JudgeWrit petition disposed of; No costs.

Sheela K.P. v Kerala Water Authority & Others

Case / Petition Number:WP(C).No. 29615 of 2015
Neutral Citation:/null

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • K. Vinod Chandran
Judgment Date
2016-02-10
Court Decision / Holding
Writ petition disposed of. The petitioner is granted 9% interest on the DCRG from 01.10.2010 to the date of payment; the Kerala Water Authority is to pay the amount within one month and recover the interest proportionately from the responsible officers mentioned in Ext.P3. The DCRG amount already paid is acknowledged. No costs.
Final Disposition
Writ petition disposed of; No costs.

Parties to the Case

Appellants / Petitioners

  • Sheela K.P.

Respondents

  • The Managing Director, Kerala Water Authority
  • The Finance Manager & Chief Accounts Officer, Office of the Managing Director, Kerala Water Authority
  • The Superintendent Engineer – Public Health Circle, Kerala Water Authority, Kollam
  • The Executive Engineer – Project Division, Kerala Water Authority, Kollam
  • The Assistant Executive Engineer – Water Supply Sub Division, Kerala Water Authority, Kollam
  • The Assistant Executive Engineer – Stock Verification Sub Division, Kerala Water Authority, Thiruvananthapuram

Legal Representation & Advocates

Counsels for Petitioners

  • • Sri. B. Mohanlal

Counsels for Respondents

  • • Sri. George Mathew, SC, Kerala Water Authority

Case Synopsis & Summary

This writ petition concerns the widow of a retired Kerala Water Authority employee who faced non-payment of retirement benefits (DCRG) for five years post-retirement. The petitioner, Sheela K.P., filed WP(C) 29615/2015 seeking release of the delayed pensionary benefits and, specifically, interest for the delay. The Court notes that the petitioner’s husband retired on 31.03.2010 and that DCRG was only paid after the petition was filed; the court considers whether the delay warranted interest under constitutional or policy provisions. The respondent-authorities argued there was no default by the institution’s employees and relied on Government Order G.O.(P) No.185/2002/Fin. (dated 27.03.2002), particularly para (iii), which requires employees to cooperate in obtaining timely NLCs/LCs from offices where they worked during the last three years of retirement. The Court, however, found that the documentation (NLCs Ext.P2 and Ext.P3) indicated failures by multiple offices to furnish proper NLCs (e.g., missing incumbency periods, lack of timely responses), demonstrating gross negligence and indifference by the responsible officers. Relying on a Supreme Court precedent (AIR 2008 SC 1077, S.K. Dua v. State of Haryana), the Court held that an employee can claim interest on delayed benefits even in the absence of statutory rules, and directed payment of 9% interest from 01.10.2010 until payment, to be borne by the Water Authority and recoverable from the responsible officers. The writ petition is disposed of with no costs.

Provisions of Law Cited

Constitution of India Article 14Constitution of India Article 19Constitution of India Article 21G.O(P) No.185/2002/Fin., dated 27.03.2002Clause v of G.O(P) No.185/2002/Fin.Paragraph (iii) of G.O(P) No.185/2002/Fin.

Legal Doctrines & Maxims

  • Interest on delayed payment of pensionary benefits may be awarded even in the absence of statutory rules, relying on Part III of the Constitution (Articles 14, 19, 21).
  • S.K Dua v State of Haryana & Another, AIR 2008 SC 1077, on entitlement to interest in the context of delayed retirement benefits.

Submissions & Arguments

Contentions of Appellants / Petitioners

The petitioner contends that her husband’s retirement benefits (DCRG) were due but unpaid for years, causing hardship and depriving the family of pensionary support. She argues that delays stem from the Water Authority’s offices failing to furnish proper NLCs, and that government policy (GO 185/2002/Fin) expressly requires timely processing and accountability. She seeks interest on the delayed payment, citing constitutional rights and applicable Government Orders.

Contentions of Respondents

The Water Authority contends there was no negligence by its employees; delays occurred due to administrative formalities and issues with NLCs, some not in prescribed forms or lacking incumbency details. It relies on G.O(P) No.185/2002/Fin, para (iii), and argues that employees must cooperate, and that any deficiency should not automatically attach liability for interest.

Cited Precedents (1)

Case NameCitationTreatmentExplanation
S.K Dua v State of Haryana & AnotherAIR 2008 SC 1077PositiveProvides authority that an employee may be entitled to interest on delayed pensionary benefits, even in the absence of statutory rules, by relying on Part III of the Constitution.

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Extracted Judgment Text

Exact text extracted from official judgment records.

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT: THE HONOURABLE MR.JUSTICE K.VINOD CHANDRAN WEDNESDAY, THE 10TH DAY OF FEBRUARY 2016/21ST MAGHA, 1937 WP(C).No. 29615 of 2015 () --------------------------- PETITIONER(S)/PETITIONER: ------------------------------------------------ SHEELA K.P. AGED 53 YEARS W/O. LATE RAVEENDRAN PILLAI, VINAYAKAM VEEDU MRA GARDENS-5, MANAYIKULANGARA, KOLLAM WEST VILLAGE THIRUMULLAVARAM P.O., KOLLAM-691012. BY ADV. SRI.B.MOHANLAL RESPONDENT(S)/RESPONDENTS: ---------------------------------------------------- ## 1. THE MANAGING DIRECTOR KERALA WATER AUTHORITY, JALA BHAVAN, VELLAYAMBALAM THIRUVANANTHAPURAM-695033. 2. THE FINANCE MANAGER & CHIEF ACCOUNTS OFFICER OFFICE OF THE MANAGING DIRECTOR KERALA WATER AUTHORITY, JALA BHAVAN, VELLAYAMBALAM THIRUVANANTHAPURAM, PIN-695033. 3. THE SUPERINTENDING ENGINEER - PUBLIC HEALTH CIRCLE, KERALA WATER AUTHORITY KOLLAM-691001. 4. THE EXECUTIVE ENGINEER PROJECT DIVISION, KERALA WATER ATHORITY KOLLAM-691001. 5. THE ASSISTANT EXECUTIVE ENGINEER WATER SUPPLY SUB DIVISION, KERALA WATER AUTHORITY KOLLAM-691001. 6. THE ASSISTANT EXECUTIVE ENGINEER KERALA WATER AUTHORITY STOCK VERIFICATION SUB DIVISION THIRUVANANTHAPURAM-695033. R1 -R 6 BY ADV. SRI.GEORGE MATHEW, SC, KERALA WATER AUTHORITY THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 10-02-2016, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).No. 29615 of 2015 () --------------------------- APPENDIX PETITIONER(S)' EXHIBITS ------------------------------------- EXT.P1:-THE TRUE COPY OF THE ORDER NO 7068/230 DTD 12/2010 ISSUED BY THE 2ND RESPONDENT TO THE PETITIONER EXT.P2:-THE TRUE COPY OF THE NON LIABILITY CERTIFICATE WAS ISSUED BY THE 5TH RESPONDENT AS PER ORDER NO IPDC 77/05/VOL 2 DTD 4/8/2010 EXT.P3:-THE TRUE COPY OF THE ORDER NO KWA/PDN/PDK/E1-842/2010 DTD 19/12/2011 ISSUED BY THE 4TH RESPONDENT EXT.P4:-THE TRUE COPY OF THE DEATH CERTIFICATE OF THE PETITIONERS HUSBAND SRI RAVEENDRAN PILLAI G ISSUED BY THE REGISTRAR OF BIRTHS AND DEATHS, KOLLAM,CORPORATION DTD 17/11/2015 EXT.P5:-THE TRUE COPY OF A LEGAL HEIR-SHIP CERTIFICATE NO.C2-1597/15/K.DIS DTD 5/6/2015 ISSUED BY THE TAHSILDAR, KOLLAM EXT.P6:-THE TRUE COPY OF THE APPLICATION SUBMITTED BY THE PETITIONER BEFORE THE IST RESPONDENT RESPONDENT(S)' EXHIBITS: NIL --------------------------------------- //TRUE COPY// P.A TO JUDGE jma ## K. VINOD CHANDRAN, J - - - - - - - - - - - - -- - - - - - - - - - - - - - - - W.P(C) No.29615 of 2015 - - - - - - - - - - - - - - - - - - - - - - - - - - - - Dated this the 10[th] day of February, 2016 ## J U D G M E N T The petitioner is the widow of a retired employee who has been forced to approach this Court for the retirement benefits due to her husband which were not paid even after five years of retirement. The amount of DCRG has been paid to the petitioner after the writ petition was filed. The petitioner claims interest; according to this Court, rightly so. 2. The learned Standing Counsel for the Water Authority has filed a counter affidavit specifically contending that there was no omission or delay on the part of the employees of the Water Authority. The learned Standing Counsel would also specifically refer to G.O(P) No.185/2002/Fin. Dated 27.03.2002 which mandate that the employee should also co-operate in getting the retirement benefits released in time, by ensuring that the Non Liability Certificate of the offices in which he/she had W.P(C) No.29615/2015 ::2:: worked, prior to retirement is received in time. Specific reference is made to paragraph (iii), which provides that it is incumbent upon the employee as well, for his own interest, to ensure that the NLC/LC from other offices in which he worked during last 3 years of his retirement, be furnished in time. 3. This Court is not convinced that the said stipulation can be relied on to ascribe any default on the employee, if the NLC is not received in time. But for the present case, even that need not be considered and the case can be examined in the light of the above stipulation itself. The employee retired on 31.03.2010. The employee had obtained NLC from three offices which is produced at Ext.P2 series. The specific reason for non-granting of DCRG is stated in Ext.P3, a communication of the Executive Engineer issued to the Finance Manager and Chief Accounts Officer, a copy of which has also been endorsed to the petitioner. The 2[nd] paragraph of the said communication is extracted hereunder: “the NLC issued by IPD Sub Division W.P(C) No.29615/2015 ::3:: Changanassery, was not in the prescribed PA17 and the incumbency period was not mentioned. The NLC issued by Water Supply Division, Kollam doesn't contain the incumbency period of the concerned officer. Moreover the NLC from Stock Verification sub Division Thiruvananthapuram was not received. Registered letters were sent to Asst. Exe.Engineer, Stock Verification Sub Division, Thiruvananthapuram on 20.1.2011 and to Asst.Ext/Engineer, IPD Sub Division, Changanasserry on 20.1.2011. The matter was intimated to Water Supply Sub Division, Kollam on 20.1.2011. But no reply has been received from the IRD Sub Division, Changanasserry and Water Supply Sub Division, Kollam. The Stock verification Sub Division, Trivandrum has reported that the NLC can be issued only after analising the liability if any in the name of concerned officer vide letter W.P(C) No.29615/2015 ::4:: No.KWA/SB/E1/NLC.LC/2009/ dt 8.2.2011. They had also reported that they are not able to do so for want of co-operation from the concerned Asst. Engineer” 4. A reading of the above extract would clearly indicate that the petitioner was not at all responsible for the delay in payment of the DCRG. The contention of the Water Authority in the counter affidavit that there were no laches on the part of the employees of the Authority is belied by the aforesaid communication at Ext.P3. One of the NLC's issued by an office, was not in the prescribed form and another did not contain any incumbency period. Yet another NLC to be issued from the stock verification sub division was never received. The Executive Engineer in Ext.P3 specifically refers to the letters issued in the year 2011 to the three offices referred to therein which was not responded to by the said offices. The said attitude is clearly indicative of gross negligence and stark indifference, especially occassioned in the case of disbursal of the DCRG to a retired employee. Such conduct of the employees in service has to be W.P(C) No.29615/2015 ::5:: deprecated and they have to be reminded that one day they also would face the same consequence of superannuation. Even in the case of pending disciplinary inquiry, which was closed later, the Hon’ble Supreme Court in AIR 2008 SC1077 (S.K Dua v State of Haryana & Another) held so in Paragraph 11: “In the circumstances, prima facie, we are of the view that the grievance voiced by the appellant appears to be well-founded that he would be entitled to interest on such benefits. If there are Statutory Rules occupying the field, the appellant could claim payment of interest relying on such Rules. If there are Administrative Instructions, Guidelines or Norms prescribed for the purpose, the appellant may claim benefit of interest on that basis. But even in absence Statutory Rules, Administrative Instructions or Guidelines, an employee can claim interest under Part III of the Constitution relying on Articles 14, 19 and 21 of W.P(C) No.29615/2015 ::6:: ## the Constitution.” 5. Considering the entire circumstances of the instant case and also the fact that the callous indifference of the irresponsible officers, resulted in the employee having passed away without being able to receive his retirement benefits, this is an apt case in which interest has to be granted for the delay occasioned. In granting such interest this Court is further fortified by the Government Order above referred, which says so in Clause v: v. Issuance of NLC/Payment of interest: At present interest on delayed payment of pensionary benefits is paid by Government to satisfy, Court directions and to avoid possible contempt, pending realization of the same from the persons responsible. For any delay beyond 1 year in cases of pending departmental/judicial action at the time of retirement and 6months in normal cases, the pension sanctioning authority/authority who is to issue consolidated NLC/LC will be personally held responsible for the delay and may be made liable to remit to Government account the interest amount before interest is actually paid by W.P(C) No.29615/2015 ::7:: Government. 6. The present rate of interest available in the commercial Banks and Co-operative Banks range between 8 to 10%. The petitioner is granted 9% interest for the DCRG amounts from 01.10.2010, six months from the date of retirement (since there is no departmental/judicial proceeding pending as per the above extract), till the date of payment. The said interest shall be paid by the Kerala Water Authority within a period of one month from today and the Water Authority would be entitled to recover such interest proportionately from the (ir-)responsible persons who were manning the offices referred to specifically in Ext.P3. Writ petition is disposed of. No costs. Sd/- - (K. VINOD CHANDRAN, JUDGE) jma //true copy// P.A to Judge