IN THE HIGH COURT OF HIMACHAL PRADESH, SHIMLA. CWP(T) No.: 12360 of 2008. Reserved on: 05.07.2011. Decided on: 15.07.2011. _______________________________________________ Devi Singh Chauhan. … Petitioner. Versus State of Himachal Pradesh and others. … Respondents. Coram The Hon’ble Mr. Justice Rajiv Sharma, J. Whether approved for reporting?1 Yes. For the Petitioner : Mr. M.L. Sharma, Advocate. For the Respondents : Mr. Vikas Rathore, Deputy Advocate General with Mr. R.P. Singh, Assistant Advocate General for respondents No.1 and 2. Mr. Sandeep Sharma, Assistant Solicitor General of India for respondent No.3. Rajiv Sharma, Judge: Petitioner was appointed as Clerk in the Animal Husbandry Department on 15.2.1974. A decision was taken by the respondent-State to transfer Dairy Development 1 Whether the reporters of Local Papers may be allowed to see the judgment? Yes. - 2 - Schemes functioning in six districts, namely, Shimla, Mandi, Sirmour, Solan, Bilaspur and Hamirpur to the H.P. State Cooperative Milk Producers’ Federation Ltd. (hereinafter referred to as “the Milkfed” in brevity) vide notification dated 14.9.1983. The decision was taken to keep the posts as shadow posts till such time as the incumbents holding those posts were absorbed by due process of law vide office order dated 14.9.1983. 218 numbers of posts were to be abolished born on the cadre of Animal Husbandry Department of the State as on 1.10.1983. The petitioner was called upon to exercise his option to be absorbed in Milkfed on 16.6.1984. Petitioner exercised his option pursuant to which he was absorbed in the Milkfed with effect from 1.7.1984 vide notification dated 22.7.1987. It will be apt at this stage to reproduce condition No.(a) enumerated in Annexure A-5, dated 22.7.1987, which reads thus:- “a) He will be eligible for pro-rata pension & DCRG on the length of qualifying service under the Government till the date of his absorption in the H.P. State Milk Co-op. Federation Ltd. Family Pension under Rules 54 & 55 of the CCS (Pension) Rules, 1972 which apply to the State Government employees in H.P. shall also be admissible if Shri Devi Singh Chauhan is actually in receipt of pension from the State Government after absorption in the said Milk Federation. The pensionary benefits will be payable in accordance - 3 - with the instructions contained in para 2 of the H.P. Government F.D. O.M. No.14-2/64-Fin(P&E) dated 8.7.1976. The family pension will be admissible from the State Government only if no other family pension scheme is available under the H.P. State Milk Co-operative Producers Fed. Ltd.” 2. Thereafter, the petitioner made a representation for the release of his pension. The case of the petitioner was taken up by respondent No.2 with respondent No.3. However, respondent No.3 turned down the case of the petitioner by referring to O.M. No.14/2/64 (Fin) R&E), dated 8.7.1976 on 10.2.1988. The petitioner made fresh representation to respondent No.3 vide Annexure A-7 on 31.12.1992. He also gave reference of one H.K. Sharma. The case of the petitioner was again turned down on 4.3.1993 by respondent No.3 vide Annexure A-8. Petitioner again made a representation vide Annexure A-9. Thereafter, corrigendum was also issued by the Secretary (Animal Husbandry) to the Government of Himachal Pradesh whereby the words “autonomous body” was substituted by words “Public Sector Undertaking”. However, the fact of the matter is that the petitioner was issued P.P.O. on 26.11.1996. The petitioner made a representation against the same on 2.12.1996. He filed Original Application No.1556 of 2005 which was disposed of on 23.6.2005 by treating the same to be representation to - 4 - the Director (Animal Husbandry) to the Government of Himachal Pradesh. He rejected the same on 5.8.2005 vide Annexure A-15. Petitioner was also heard in person by the Director (Animal Husbandry). 3. Mr. M.L. Sharma, learned counsel for the petitioner has strenuously argued that his client was entitled to get pension immediately on the date he was absorbed, i.e. 1.7.1984. He then submitted that his client was entitled to reasonable interest with effect from 1.7.1984 to 26.11.1996. 4. Mr. Vikas Rathore, learned Deputy Advocate General and Mr. Sandeep Sharma, learned Assistant Solicitor General of India have vehemently argued that as per office memoranda issued on 14.2.1964 and 8.7.1976, petitioner was not entitled to get pension in 1984. According to them, the petitioner was entitled to get pension only with effect from 15.2.1994 after completion of 20 years of service as per H.P. Pre-mature Retirement Rules, 1976. 5. I have heard the learned counsel for the parties and gone through the pleadings carefully. 6. It is not in dispute that the petitioner stood absorbed in Milkfed with effect from 1.7.1984 vide notification dated 22.7.1987. It was clearly stipulated at the time when the petitioner was absorbed vide Annexure A-5 that his pensionary benefits will be payable in accordance with the - 5 - instructions contained in para 2 of the H.P. Government F.D. O.M. dated 8.7.1976. The case of the petitioner has also been rejected as per Annexure A-6 by referring to O.M. dated 8.7.1976. The copy of office memorandum dated 8.7.1976 was produced during the time of hearing, condition No.14 whereof reads thus:- “14. A Government servant who is permitted to be absorbed in the public interest in a public sector undertaking or autonomous body is deemed to have retired from Government service from the date of his absorption in public sector undertakings or autonomous body and his retirement benefits are determined with reference to the length of qualifying service rendered under Government till the date of his absorption. In the case of absorption in an autonomous body from 16th June, 1967 onwards or a public sector undertaking prior to 8th November, 1968, retirement benefits become payable either from the earliest date from which Government servant could have retired voluntarily under the rules applicable to him or from the date of absorption in the undertaking/corporation whichever is later.” 7. It is thus evident from the reading of condition No.14 that those persons who have been absorbed after retirement from Government service and have been absorbed in public sector undertaking will get their pension either from the earliest date which Government servant could have voluntarily retired under the rules applicable to him or from - 6 - the date of absorption in the undertaking/corporation whichever was later. 8. In the instant case, the petitioner was appointed on 15.2.1974. He was entitled to get pension on completion of 20 years’ service on 15.2.1994, as per H.P. Pre-mature Retirement Rules, 1976. Petitioner has not assailed notification dated 8.7.1976. He has been paid pension with effect from 26.11.1996 though as per reply filed by respondents No.1 and 2, he was entitled to get pension with effect from 15.2.1994. Petitioner has not been paid interest on the delayed payment of pension and the order dated 5.8.2005, Annexure A-15 is contrary to the record. Petitioner cannot be held responsible in any manner for delayed release of pension on 26.11.1996, to which he was legally entitled to get on 15.2.1994. 9. According to the Director (Animal Husbandry), the matter remained under correspondence with the Government. However, there is no contemporaneous material placed on record to support his submission by giving dates etc. of the correspondence. It is settled law that the employee is entitled to reasonable interest in case the retiral/pensionary benefits are paid belatedly without any cause or justification. - 7 - 10. Accordingly, in view of the observations and discussions made hereinabove, the petition is partly allowed. Petitioner is held entitled to interest at the rate of 12% per annum from 15.2.1994 to 26.11.1996 to be paid and released to him within a period of 10 weeks after the production of certified copy of this judgment by the petitioner. The petitioner is also held entitled to costs quantified at ` 5,000/-. The pending application(s), if any, also stands disposed of. No costs. (Rajiv Sharma), Judge. July 15, 2011. (sck).