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.”
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