The Allahabad High Court, in a landmark judgment, has directed the State of Uttar Pradesh to pay 8% annual interest to Smt. Krishnawati for delayed disbursement of her deceased husband’s retiral benefits. The decision, authored by Justice Ajay Bhanot, underscores the critical duty of state authorities to process terminal dues with empathy and promptitude.
Background of the Case
The petitioner, Smt. Krishnawati, widow of a deceased state government employee, approached the court after facing an inordinate delay in receiving her late husband’s provident fund, family pension, and other dues. Despite her application for these benefits in 2005, the disbursement was made only in December 2019—14 years later. This delay persisted even after multiple interventions, including the filing of a contempt petition following initial writ proceedings.
The petitioner was represented by Advocate Bramh Narayan Singh, while the respondents, including the State of Uttar Pradesh, were defended by the Standing Counsel Manu Singh.
Key Legal Issues
The case revolved around the right to timely disbursal of retiral benefits and whether the state could be held accountable for the delay in releasing these payments, despite the absence of any legal impediments. Another issue was whether the petitioner was entitled to interest on the delayed disbursement and, if so, at what rate. The court also examined the responsibility of state officials in causing such delays and their accountability in rectifying them.
Court’s Observations
Justice Ajay Bhanot emphasized that the death of an employee not only creates emotional turmoil for the family but also leaves them financially vulnerable. “The deceased employee’s family cannot be harassed for her entitlements by overbearing officials,” the judgment reads. The court further criticized the “callous attitude” of the authorities, stating that the petitioner was made to “run from pillar to post” to secure her rightful dues.
The court referred to the precedent in Yogendra Singh vs. State of U.P. (2016), reiterating that pension and retiral benefits must be processed as per the Rules, 1995, on the eve of retirement or death. It observed that delays in payment warrant interest at the current market rate, which can be recovered from negligent officials responsible for the lapse.
The Judgment
The High Court ordered the state to pay simple interest at 8% per annum on the delayed amounts from August 18, 2005, to December 23, 2019. The interest is to be calculated and released within three months from the certified receipt of the judgment. Failing this, the concerned officials will bear liability for further delays.
The court also highlighted the need for systemic reforms to prevent recurrence of such administrative apathy.
Case Details:
- Case Title: Smt. Krishnawati vs. State of U.P. and Others
- Case No.: Writ – A No. 12642 of 2020
- Bench: Justice Ajay Bhanot
- Petitioner Counsel: Advocate Bramh Narayan Singh
- Respondent Counsel: Standing Counsel Manu Singh
