Court No. - 38
Case :- WRIT - A No. - 12073 of 2019 Petitioner :- Shiv Patti Devi Respondent :- State Of U.P. And 4 Others Counsel for Petitioner :- Durga Tiwari Counsel for Respondent :- C.S.C.,Rajnish Kumar Rai
Hon'ble Ashwani Kumar Mishra,J.
1. I have heard Ms. Durga Tiwari, learned counsel for the petitioners and Sri Rajiv Ojha, learned Standing Counsel for the State.
2. This petition is directed against an order dated 6.5.2019 passed by the Senior Accounts Officer in the office of Accountant General,U.P. Allahabad, as per which petitioner has been held entitled to interest upon delayed release of GPF amount only for a period of one year and for all subsequent period the interest stands denied.
3. Brief facts, giving rise to filing of this petition, are that the petitioner's husband was a government servant, who retired from the post of Assistant Development Officer, Basti on 30.6.1992. After his retirement, the amount of GPF was not paid to him though several applications were made in that regard. It appears that 90% amount towards GPF was paid but the balance 10% was withheld without there being any justifiable reason in that regard. It appears that the government servant died in the year 2016, where after claim was raiterated by the petitioner for release of withheld amount of GPF and it is at this stage that the Accountant General's office prepared a calculation chart and also directed the petitioner to submit form 425-Ka. The 10% amount of GPF alongwith interest, which was to be paid at the end of the year, was consequently paid to petitioner on 6.2.2019. Interest, however, has been paid to the petitioner only till August, 1993, relying upon the provisions of 'General Provident Fund (Uttar Pradesh) Rules, 1985'
(hereinafter referred to as the 'Rules of 1985').
4. Aggrieved by this action of the respondents, the petitioner, who is a widow of the deceased government servant has filed this petition.
5. Payment of provident fund to the petitioner's husband was to be regulated by the Rules of 1985. The Rules are self contained rules which also contains specific provision for payment of interest. Rule- 11(1) of the Rules of 1985 contemplates that subject to the provisions of sub-rule (5) government shall pay to the credit of the account of a subscriber, interest at such rate as may be determined for each year by the Government of India. The manner for calculating the amount of interest has also been specified in Sub rule-4. Sub Rule-4 alongwith its proviso is relevant for the present purposes and is reproduced:-
(4) In addition to any amount to be paid under Rules 20, 21 or 22 interest thereon up to the end of the month preceding that in which the payment is authorised, shall be payable to the person to whom such amount is to be paid :
Provided that where the application required under sub-rules (4) and (5) of Rule 24 is submitted complete in all respects to the Head of Office or Department, whose duty it is to forward the same to the Account Officer, after the expiry of six months from the date the amount claimed became payable, interest shall be payable only to the end of the month preceding that in which the payment is authorized or up to the end of the twelfth month after the month in which such amount became payable whichever is earlier except where it is proved to the satisfaction of the Head of Office or Department concerned that the submission of the said application was delayed by circumstances beyond the control of the applicant in which case the restriction of this proviso shall not apply :
Provided further that where a subscriber, on deputation to an Undertaking, subsequently absorbed in such Undertaking with effect from a retrospective date, then, for the purpose of calculating interest due on the Fund accumulation of the subscriber, the date of issue of the orders regarding absorption shall be deemed to be the date on which the amount to the credit of subscriber became payable.”
6. Rules- 20,21 and 22 and sub Rule (4) and (5) of Rule 24 of the Rules of 1985 are also referred and, therefore, would require examination. Rule-20 relates to final payments of accumulation in the fund. It is provided that a subscriber, who has been dismissed from service and is subsequently reinstated shall, if required to do so by the Government, repay any amount paid to him from the Fund in pursuance of this rule. Rule-21 relates to a subscriber who has retired while Rule-22 deals with the procedure on death of subscriber. Rule-
24 provides the manner of payment of amount in the fund. The Rule also vests jurisdiction in head of the department to examine facts and if it is foundt hat delay was caused for reasons beyond the control of the applicant then the proviso would not apply. The Rule clearly puts a responsibility upon the office to release the amount of GPF within a specified period and provision of interest is made for such period. The restriction on payment of interest, however, would not apply where the delay is attributed to the department or the applicant can demonstrate to the satisfaction of the head of department that delay was for reason beyond the control of applicant. This proviso would deny interest to the applicant only when the delay is attributed to the applicant and he has not been able to satisfy the head of the department that such delay was caused for reasoned beyond his control.
7. A composite reading of the statutory scheme would clearly go to show that the subscriber would be entitled to payment of upto date interest upon the amount lying in deposit. The proviso further contemplates that where the application required under sub rule 4 and 5 of Rule 24 of Rules of 1985 is submitted and is complete in all respect, the interest shall be payable only after end of the month preceding for which payment is authorised or upto the end of 12th month after the month in which the amount was become payable. No material has been placed before the Court which may demonstrate that there was any delay on part of the petitioner or her husband in furnishing the necessary details or submitting application etc. in the prescribed format. It is not in issue that 90% payment of GPF amount has already been paid to the petitioner. It was the responsibility of the administrative department and the office of the Accountant General's office to ensure release of 10% balance GPF amount within a reasonable period. No material has been placed which may even remotely suggests that the petitioner or her husband were at fault in not completing necessary formalities. It is otherwise expected that an employee even before the retirement or soon thereafter would be called upon to submit necessary from etc. in the required format in which details would be furnished. In the absence of any material placed before this Court, which may demonstrate that there was any default on the part of the applicant, the obligation for payment of interest cannot be evaded.12073
8. Law is otherwise settled that the interest is necessary corollary of withheld amount and for any delay in payment of GPF amount due to a government servant, he / she would be entitled to interest. The amount due and payable, herein, had otherwise crystallized in favour of petitioner. Denial of interest upon amount since 1993 is wholly unexplained.
8. In that view of the matter, this writ petition succeeds and is allowed. Order impugned dated 6.5.2019 passed by the respondent no. 3 stands quashed. A direction is issued to the respondents to release interest upon the delayed payment of delayed GPF amount to the petitioner within a period of three months from the date of presentation of certified copy of this order. It would, however, be open for the respondents to conduct an inquiry and determine the responsibility of the person who may have been responsible for causing delay in payment of interest and recover the amount from such guilty person, in accordance with law.
9. In the facts and circumstances of the case, petitioner would also be entitled to costs assessed at Rs. 1000/-. Costs would be equally shared by the administrative department and the office of the Accountant General.
Order Date :- 26.9.2019 n.u.