SUPREME COURT OF INDIA

Before:- B.N. Kirpal and S. Rajendra Babu, JJ.

Civil Appeal No. 689 of 2000. D/d. 31.1.2000

Vijay L. Mehrotra - Appellant

Versus

State of U.P. - Respondents

Retiral benefits - Delay in payment - Interest - No reason or justification for not making the payments for months together - Direction issued to pay simple interest at the rate of 18% w.e.f. the date of retirement till the date of payment.

[Para 4]

ORDER

B.N. Kirpal, J. - Special leave granted limited to the question of granting of interest.

2. The appellant retired from service on 31st August, 1997. From the response filed by the respondent, it is clear that most of the payments of the retiral benefits to her were made long after she retired on 31st August, 1997. The details of the payments so made are as under :

Sl. No.	Particulars	Amount paid	Date
i.	G.P.F. 90%	Rs. 1,80,899.00	27.11.1997
ii.	G.P.F. 10%	Rs. 20,751.00	25.04.1998
iii.	G.I.S.	Rs. 13,379.00	27.02.1998
iv.	Encashment of leave	Rs. 41,358.00	27.09.1998
v.	Arrears of pay	Rs. 15,495.00	27.09.1998
vi.	Gratuity	Rs. 1,09,753.00	05.12.1998
vii.	Commuted pension	Rs. 20,484.00	05.12.1998
viii.	Detained amount	Rs. 45,000.00	05.11.1999

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. 31st August, 1997 till the date of payment.

5. The appeal is allowed to the above extent.

Appeal allowed.