Paucity of funds not valid ground to withhold pensionary benefits: Punjab and Haryana HC

Saurabh Malik

Chandigarh, October 5

The Punjab and Haryana High Court has made it clear that the paucity of funds is not a valid ground to withhold the pensionary benefits of employees.

Justice Harsimran Singh Sethi of the HC also made it clear to the State of Haryana and other respondents that the pensionary benefits, released to two of its retired employees, would also carry 6 per cent annual interest from the due date till the day of actual payment.

The matter was brought to Justice Sethi’s notice after Girraj Singh and another petitioner moved the court against the State of Haryana and other respondents. Among other things, they contended that the pensionary benefits were not being released by the respondents on the ground of paucity of funds, although they retired from the service on March 31, 2021, on attaining the age of superannuation.

Justice Sethi took note of the fact that the respondents, following the issuance of notice of motion, filed their reply mentioning that the benefits stood released on April 5. But the contention of the petitioners’ counsel was that the benefits were released after a delay. As such, the petitioners were entitled to the grant of interest.

Justice Sethi also took note of the arguments by the counsel for the respondents that there was paucity of funds and the same was a valid reason for not releasing the pensionary benefits. Their claim for the grant of interest may, as such, needed to be declined.

After hearing the rival contentions and going through the record, Justice Sethi asserted the ground mentioned by the respondents to withhold the benefits was not available to them keeping in view the settled principle of law. It was a conceded position that both petitioners retired on March 31 last year, but the retirement benefits were paid on April 5.

Referring to a full Bench judgment of the HC, Justice Sethi said the retirement benefits were to be computed and released within two months in the absence of impediments.