High Court of KeralaSingle JudgeAppeal disposed: Second appeal dismissed; the l...

V. L. Kochannam v. State of Kerala and Others

Case / Petition Number:SA 652 of 1994 (also AS.205/1992 of District Court, Thalassery; OS.164/1991 of Sub Court, Thalassery)

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • M. Sasidharan Nambiar
Judgment Date
2007-09-18
Court Decision / Holding
Second appeal is dismissed. No cost.
Final Disposition
Appeal disposed: Second appeal dismissed; the lower court’s decision awarding interest on the pensionary benefits is upheld; no costs.

Parties to the Case

Appellants / Petitioners

  • State of Kerala, represented by the District Collector, Kannur; Director of Public Instructions, Thiruvananthapuram; Deputy Director of Education, Kannur

Respondents

  • V. L. Kochannam (Respondent/ Plaintiff)

Legal Representation & Advocates

Counsels for Petitioners

  • • Government Pleader

Counsels for Respondents

  • • Adv. Grashious Kuraiyokose

Case Synopsis & Summary

V. L. Kochannam, a retired teacher of Sacred Heart U.P. School, Angadikadavu, challenged the delay in disbursement of pensionary benefits following her voluntary retirement on 30/4/1990. She submitted pension papers on 21/5/1990; sanctioning authorities routed them through the manager, district authorities, and Accountant General, with several requisitions and remarks, including missing remarks from the DEO. Final pension sanction reached the Accountant General only on 14/11/1990; the last pay certificate and non-liability certificate issued on 1/12/1990. The respondent claimed interest on the delayed pension and gratuity, arguing that the delay was not due to her fault and that she was entitled to interest for the period of delay. The appellants contended that the delay was attributable to the respondent’s own delay in submitting papers and that Padmanabhan Nair’s case (1984 KLT 542) was not applicable. The Sub Judge dismissed the suit; the District Court, relying on the Padmanabhan Nair precedent, held that the request for voluntary retirement was filed three months in advance and that delay could not be attributed to the officials except for a brief period. It awarded interest at 10% from 1/10/1990 to 1/12/1990, excluded 30/4/1990 to 30/9/1990. The second appeal, though framed with substantial questions of law, was found to involve no substantial questions of law, and the appeal was dismissed, upholding the interest award.

Provisions of Law Cited

Kerala Service RulesSection 100(5) of the Code of Civil Procedure

Legal Doctrines & Maxims

  • Pension cannot be termed as a payment by way of compassion.
  • Gratuity is a valuable right of government servants.
  • Delay in pension disbursement cannot be attributed to the respondent's fault beyond a short period.

Submissions & Arguments

Contentions of Appellants / Petitioners

The appellants argued that although the respondent applied for voluntary retirement with effect from 30/4/1990, pension papers were submitted late (21/5/1990) and the sanctioning authority’s remarks were incomplete, leading to delays not attributable to the appellants. They contended that Padmanabhan Nair’s case (1984 KLT 542) is not applicable to the facts, and that interest should not be awarded for the delayed period beyond the respondent’s own fault. They asserted that no substantial question of law arose and that the decree should be set aside.

Contentions of Respondents

The respondent argued that the delay in pensionary benefits is not due to her fault and relied on Padmanabhan Nair’s case (1984 KLT 542) to justify interest on the pensionary benefits from 1/10/1990 to 1/12/1990, while excluding pre-October 1990 delays where there was administrative delay beyond the respondent’s control; the court should apply the principles of that decision to award interest.

Cited Precedents (1)

Case NameCitationTreatmentExplanation
State of Kerala v. Padmanabhan Nair1984 KLT 542PositiveThe High Court relied on this decision to conclude that delays in disbursing pensionary benefits cannot be attributed to the claimant’s fault for the period in question, justifying an award of interest.

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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 M.SASIDHARAN NAMBIAR** **TUESDAY, THE 18TH SEPTEMBER 2007 / 27TH BHADRA 1929** ## **SA.No. 652 of 1994()** **--------------------** **AS.205/1992 of DISTRICT COURT, THALASSERY OS.164/1991 OF THE SUB COURT, THALASSERY** **....................** ## **APPELLANTS:RESPONDENTS:DEFENDANTS:** **-------------------------------------------------------------------** **1. STATE OF KERALA, REPRESENTED BY THE DISTRICT COLLECTOR, KANNUR.** **2. DIRECTOR OF PUBLIC INSTRUCTIONS, THIRUVANANTHAPURAM.** **3. DEPUTY DIRECTOR OF EDUCATION, KANNUR.** ## **BY GOVERNMENT PLEADER** ## **RESPONDENT:APPELLANT:PLAINTIFF:** **-----------------------------------------------------------** **V.L.KOCHANNAM, W/O.T.M.THOMAS, RETIRED TEACHER, PANANGATH HOUSE, ANGADIKADAVU P.O., ANGADIKADAVU.** ## **BY ADV. SRI.GRASHIOUS KURIAKOSE** **THIS SECOND APPEAL HAVING BEEN FINALLY HEARD ON 18/09/2007, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:** Kss ## **M.SASIDHARAN NAMBIAR,J.** -----------------------------------------S.A.NO. 652 OF 1994 -----------------------------------------Dated 18[th] September 2007 ## **J U D G M E N T** Respondent was a teacher in Sacred Heart U.P.School, Angadikadavu, an aided school. She retired voluntarily with effect from 30/4/1990 in accordance with the rules. She submitted application for voluntarily retirement three months in advance on 30/1/1990. Manager, being the appointing authority accorded sanction and forwarded pension papers to third appellant for onward transmission to Accountant General. Third appellant received it on 24/2/1990 and forwarded it to Accountant General from where verification report was received on 26/4/1990. It was communicated thereafter to Assistant Educational Officer, Irritty on 16/5/1990 to obtain and forward pension proposals. Pension book shows that it was submitted only on 30/5/1990 and reached A.E.O on 12/6/1990 and it was forwarded to third appellant the sanctioning authority, who on verification found that remarks of D.E.O was missing and returned it on SA 652/94 2 18/9/1990 and later it was forwarded on 3/10/1990 and Accountant General sanctioned pensionary benefits which was received by third appellant on 14/11/1990. Last pay certificate and non liability certificate were issued to Sub Treasury, Irritty only on 1/12/1990. Respondent claimed interest for the pension and gratuity due to the delay caused. Appellants contended that delay was not caused by them but by respondent in submitting the pension papers and therefore respondent is not entitled to claim interest. 2. Learned Sub Judge on the evidence of Exts.A1 to A13 dismissed the suit holding that respondent is not entitled to the interest. Respondent challenged the decree before District court, Thalassery in A.S.205 of 1992. Learned Additional District Judge on the undisputed facts found that as per the rules respondent has submitted the proposal for voluntary retirement three months in advance on 30/1/1990 and respondent intimated the date of his retirement as early as on 30/1/1990 and it is within time. Relying on the decision of this court in **State of Kerala v. Padmanabhan Nair (1984 KLT 542** ) it was found that delay in disbursing the pensionary benefit cannot be attributed to the latches or SA 652/94 3 negligence on the part of respondent except for a short period and therefore held that respondent is entitled to interest on pensionary benefit of Rs.1,13,000/- from 1/10/1990 to 1/12/1990 at 10% per annum for the remaining period holding that he is not entitled to claim interest from 30/4/1990 to 30/9/1990. A decree was granted to that effect. Second appeal was filed challenging said decree. 3. Appeal was admitted formulating the following substantial questions of law. 1) Whether interpretation given by first appellate court to the provisions of Kerala Service Rules is correct. 2) Whether judgment of this court in State of Kerala v. Padmanabhan Nair is applicable to the facts of the case. 4. Learned Government Pleader and learned counsel appearing for respondent were heard. 5. Argument of learned Government Pleader is that though respondent applied for according sanction to voluntary retire with effect from 30/4/1990 on 30/1/990, he submitted pension papers evidenced by Ext.B1 pension book only on 30/5/1990 and therefore delay in SA 652/94 4 disbursement of the amount is not due to the fault or latches of appellants and therefore respondent is not entitled to claim interest. It was argued that decision of this court in Padmanabhan Nair’s case is not applicable and therefore the decree is to be set aside. Learned counsel appearing for respondent argued that in view of the decision of this court in Padmanabhan Nair’s case no substantial question of law is available. 6. Pension cannot be termed as a payment by way of compassion. So also gratuity. They are valuable rights available to any government servant when he retires at the end of his service. It is not disputed that in accordance with the relevant rules, respondent submitted application for according sanction to voluntary retirement with effect from 30/4/1990 providing three months advance notice. It is true that pension papers were submitted only on 21/5/1990. But pension papers so submitted was received by third appellant, the sanctioning authority on 12/6/1990. It was not sanctioned because of the failure of D.E.O to offer his remarks. It is not the fault of respondent. Consequently it was returned and thereafter it was forwarded back only on 3/10/1990. First appellate court on appreciating this SA 652/94 5 fact found that even if there was failure of respondent to submit pension papers till 21/5/1990 and adding a further period of three months provided for voluntary retirement as per rule appellants cannot be made liable to pay interest till 30/9/1990. It was also found that there is no justice for not according sanction for payment of pensionary benefits from 1/10/1990 to 1/12/1990. It was for that reason interest was directed to be paid for that period and at the rate of 10% per annum. As that delay cannot be attributed to respondent, it cannot be said that respondent is not entitled to interest for that period. First appellate court rightly relied on the decision of this court in Padmanabhan Nair’s case to award interest. In view of legal position as settled by this court in Padmanabhan Nair’s case, substantial questions of law though formulated in the appeal, in fact are not involved on the facts and circumstance of the case. As provided under Section 100(5) of Code of Civil Procedure respondent is entitled to contend at the time of hearing of second appeal that even though substantial question of law is formulated, on the facts of the case it is not involved. On the facts and evidence, no substantial SA 652/94 6 question of law arises for decision. Second appeal is dismissed. No cost. M.SASIDHARAN NAMBIAR, JUDGE. uj. SA 652/94 7 ============================= M.SASIDHARAN NAMBIAR,J. ## **JUDGMENT** S.A.NO.652 OF 1994 18[th] September 2007 ============================