IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.N.RAMACHANDRAN NAIR & THE HONOURABLE MR. JUSTICE T.R.RAMACHANDRAN NAIR THURSDAY, THE 13TH MARCH 2008 / 23RD PHALGUNA 1929 WP(C).No. 17713 of 2004(H) -------------------------- PETITIONER: ------------ 1. THE CHAIRMAN, KERALA STATE ELECTRICITY BOARD, VYDYUTHI BHAVAN, THIRUVANANTHAPURAM. 2. THE SECRETARY, KERALA STATE ELECTRICITY BOARD, VYDYUTHI BHAVAN, THIRUVANANTHAPURAM. BY ADV. SRI.N.N.SUGUNAPALAN(SR.)SC,KSEB RESPONDENTS: ------------- 1. G.H.KRISHNA IYER, RETIRED DEPUTY CHIEF ENGINEER, KERALA STATE ELECTRICITY BOARD, GANESH BUILDINGS, KIZHAKKEKARA, KOTTARAKKARA. 2. KERALA LOK AYUKTA, THIRUVANANTHAPURAM, REPRESENTED BY ITS REGISTRAR. R1 BY ADV. SRI.B.RAGUNATHAN SRI.V.V.MATHEW THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 13/03/2008, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: APPENDIX PETITIONER'S EXHIBITS: P1: TRUE COPY OF THE ORDER DT.18.6.2002 IN COMPLAINT NO.434 OF KERALA LOK AYUKTA. P2: TRUE COPY OF THE REVIEW PETITION FILED BY PETITIONER BEFORE THE LOK AYUKTA IN COMPLAINT NO.434 OF 2002. P3: TRUE COPY OF ORDER PASSED BY THE LOK AYUKTA DT.20.10.2003 IN I.A. NO.300/2002 IN COMPLAINT NO.434 OF 2002. P4: TRUE COPY OF ORDER DT.27.1.2004 IN I.A. NO.297/2003 IN COMPLAINT NO.434/2002 PASSED BY LOK AYUKTA. P5: TRUE COPY OF STATEMENT FILED BY PETITIONER BEFORE THE LOK AYUKTA ON 1.3.2004. P6: TRUE COPY OF ORDER DT.31.3.2004 PASSED BY LOK AYUKTA IN 297/2003 IN COMPLAINT NO.434/2002. P7: TRUE COPY OF STATEMENT FILED BY PETITIONER BEFORE THE LOK AYUKTA ON 28.4.2004. P8: TRUE COPY OF ORDER DT.29.4.2004 IN I.A. NO.297/2003 IN COMPLAINT NO.434/2002 OF LOK AYUKTA. P9: TRUE COPY OF STATEMENT DT.25.5.2004 FILED BY PETITIONER BEFORE THE LOK AYUKTA. P10: TRUE COPY OF THE DECISION IN COMPLAINT NO.755/2003 DT.28.5.2004 OF LOK AYUKTA. P11: TRUE COPY OF ORDER DT.7.12.2002 OF LOK AYUKTA IN COMPLAINT NO.834/2002. P12: TRUE COPY OF ORDER DT.28.5.2004 IN I.A. NO.297/2003 IN COMPLAINT NO.434 OF 2002 OF LOK AYUKTA. RESPONDENT'S EXHIBITS: R1: TRUE COPY OF G.O. DT.16.6.2004. TRUE COPY PA TO JUDGE C.N.RAMACHANDRAN NAIR & T.R.RAMACHANDRAN NAIR, JJ. .................................................................... W.P.(C) No.17713 of 2004 .................................................................... Dated this the 13th day of March, 2008. JUDGMENT C.N.Ramachandran Nair, J. Heard Senior counsel appearing for the petitioners and counsel appearing for the first respondent. The orders under challenge are Exts.P1 and P12 issued by the Lok Ayuktha awarding interest to the first respondent at 10% per annum for the belated payment of Death-cum-Retirement Gratuity on retirement. While the case of the petitioners is that delay in payment of DCRG was not deliberate and was on account of pendency of Vigilance enquiry against the first respondent, counsel for the first respondent submitted that Vigilance case was bogus case forced against the first respondent and in the Vigilance enquiry, he was completely exonerated from all allegations. We do not think there is any need to go into the allegations against the first respondent after he is cleared in the Vigilance enquiry. The first respondent admittedly retired on 31.12.2001 and Lok Ayuktha granted interest from 1.3.2002 onwards for the belated payment of DCRG. Since Vigilance enquiry was pending, we feel reasonable time for settlement of retirement benefits is atleast three months 2 and in that event, Board will be liable to pay interest from 1.4.2002 and not from 1.3.2002 as ordered by the Lok Ayuktha. Even though the Supreme Court in STATE OF KERALA V. PADMANABHAN NAIR (1985 KLT 86) held that reasonable time for payment of retirement benefits is two months, we feel the Board should be provided three months in this case because of the pendency of Vigilance enquiry against the first respondent. We, therefore, modify Ext.P1 order of the Lok Ayuktha awarding interest from 1.4.2002 till date of payment. Since rate of interest is only 10%, it is only compensatory in nature. We, therefore, do not find any ground to interfere with the rate. The KSEB is directed to give eligible interest as above within one month from date of production of copy of this judgment. In view of the above direction granting time to the Board, Ext.P12 will stand set aside. C.N.RAMACHANDRAN NAIR Judge T.R.RAMACHANDRAN NAIR Judge pms