Non Receipt of Aid From Government Cannot be a Reason to Deny Pension: Allahabad HC

Today, the Allahabad High Court at Lucknow has held that non-receipt of aid from the state government cannot be a reason to deny pension to a retired employee.

In this case Nagar Palika Parishad Sitapur filed an appeal before the division bench challenging the Judgment and Order of Single Judge dated 24.07.2020 passed in Writ Petition No. 11595 (S/S) of 2020.

Hon’ble Single Judge has allowed the writ petition directing that the parishad shall release all the retiral benefits of the employee with interest at the rate of 8%.

The Nagar parishad took the Judgment to appeal, where a division bench of Hon’ble Chief Justice Govind Mathur and Hon’ble Justice Ramesh Sinha dismissed the appeal and upheld the Judgment and Order of Hon’ble Single Judge.

The bench observed:

“We do not find any merits in the argument advanced. It is a fact admitted  that  despite  entitlement,  retiral  benefits  were  not released by the appellants, may that be because of non-receipt of  aid  from  the  State  but  that  cannot  be  a  reason  to  deny pensionary  benefits  to  a  retired  employee.  

It  was  obligatory upon the appellants to finalise the complete pension  case  of the respondent-petitioner  on  the  date  he  retired  from  service  on attaining the age of superannuation. The appellant-respondent if failed to do so, then for that the employee concerned cannot be penalised by denying his pension. In  our  considered  opinion,  no  error  has  been  committed  by learned Single Bench in awarding interest at the rate of 8% per annum on the due retiral benefits. 

The appeal, hence, is dismissed.”

Case Details:

Title: Nagar Palika Parishad Sitapur Thru Chairman & Others vs State Of U.P.Thru Secy.Nagar Vikas Deptt. Lko

Case No: Special Appeal Defective No. 344 of 2020

Date of Order: 04.01.2021

Coram: Hon’ble Chief Justice Govind Mathur and Hon’ble Justice Ramesh Sinha

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