B.N. Kirpal and; S. Rajendra Babu, JJ.
1. Special leave granted, limited to the question of granting of interest.
2. The appellant retired from service on 31-8-1997. From the response filed by the respondent, it is clear that most of the payments of the retiral benefits to her were made a long after she retired on 31-8-1997. The details of the payments so made are as under:
Sl. No. Particulars Amount paid Date
(i) GPF 90% Rs 1,80,899.00 27-11-1997
(ii) GPF 10% Rs 20,751.00 25-4-1998
(iii) GIS Rs 13,379.00 27-2-1998
(iv) Encashment of leave Rs 41,358.00 27-9-1998
(v) Arrears of pay Rs 15,495.00 27-9-1998
(vi) Gratuity Rs 1,09,753.00 5-12-1998
(vii) Commuted pension Rs 20,484.00 5-12-1998
(viii) Detained amount Rs 45,000.00 5-11-1999
3. In case of an employee retiring after having rendered service, it is expected that all the payment of the retiral benefits should be paid on the date of retirement or soon thereafter if for some unforeseen circumstances the payments could not be made on the date of retirement.
4. In this case, there is absolutely no reason or justification for not making the payments for months together. We, therefore, direct the respondent to pay to the appellant within 12 weeks from today simple interest at the rate of 18 per cent with effect from the date of her retirement, i.e., 31-8-1997 till the date of payments.
5. The appeal is allowed to the above extent.