Bombay High Court: A division bench consisting of Justices Ravindra Ghuge and Ashwin Bhobe allowed a writ petition that was filed by a widow asking for interest on the delayed payment of retirement benefits to her late husband. The court ruled that when an employee is acquitted or exonerated in disciplinary proceedings, the retirement benefits ought to be paid along with interest from the date of retirement. Further, the court rejected the argument that there was no liability to pay interest. The court held that even if the proceedings are abated, interest ought to be paid.
Background
Shanmugam Pillay was hired by the Pune Cantonment Board in 1970, and was promoted to Chief Revenue Superintendent in 2004. However, just 10 days before retirement, he was suspended from service. Four days after his retirement, the Board issued a charge memo and initiated an inquiry. The inquiry concluded in 2008, and resulted in a major penalty of removal from service. Additionally, this was applied retrospectively from 22 January 2007. Aggrieved, Pillay filed an appeal under the Cantonment Fund Servant Rules, 1937 (“1937 Rules”). However, his appeal was dismissed by the Appellate Authority. He then filed a revision application, but passed away in 2022 before the case was resolved.
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