High Court directs regularisation of service and payment of arrears with 18% interest for retired JE suffering from cancer

A single-judge bench of Justice Sanjay Kumar Mishra heard a writ petition challenging the prolonged non-implementation of directions given by the Odisha Administrative Tribunal and earlier orders of the High Court concerning regularisation of service, fixation of pay under ORSP Rules and payment of after-retiral dues including pension for a retired Junior Engineer.

The Court allowed the petition and directed the concerned authorities to complete verification of service, update the service book, disburse arrear salary and differential pension and prepare final pension papers. The Court noted established authorities holding that "pension and gratuity are no longer any bounty to be distributed by the Government" and treated delayed payment as a breach warranting interest. The Court, in its reasoning, observed: “In view of the detailed discussion as made above, so also settled position of law and the relevant Rules under the Orissa Civil Services (Pension) Rules, 1992, since this Court is of the view that the Petitioner is a victim of delay and laches on the part of the Authorities to process the papers enabling the Petitioner to get his after retiral dues in time, the Writ Petition is disposed of directing the authority concerned to release the arrear salary as well as differential pension of the Petitioner within a period of four weeks from the date of communication of the Judgment passed by this Court along with 18% interest thereon from the date of his entitlement till the date of actual payment.” The Court observed that the awarded interest could be recovered from persons responsible for the delay in terms of the Government circular dated 30.12.1999, though it declined to impose additional costs on the State.

Background The petitioner, a retired State Government employee who retired on 30.06.2013 and was suffering from cancer, sought regularisation of intermittent periods of service as a Junior Engineer, fixation of pay under the ORSP Rules (1996 & 2006), updation of service book and payment of arrears including pensionary benefits. He had earlier approached the Odisha Administrative Tribunal in O.A. No.380(C) of 2013 and O.A. No.204 of 2017; the Tribunal directed respondents to verify service and revise pay and pension papers within four months of its 08.08.2018 order. Subsequent contempt and follow-up proceedings prompted the High Court to direct fresh compliance, but the petitioner alleged continued inaction by multiple BDOs and departmental authorities. The State eventually filed a compliance affidavit in December 2022 describing steps taken: videoconference calls, consolidated proposals from a BDO, sanction of extraordinary leave and deduction of unverified suspension periods, forwarding of service book entries and letters seeking release of arrears. The petitioner filed objections asserting delay and reliance on the Orissa Civil Services (Pension) Rules, 1992 and the State circular of 30.12.1999, seeking interest on delayed payments. The Court relied on Supreme Court precedents (including State of Kerala v. Padmanabhan Nair and related authorities) that characterised pension as an earned right and held that culpable delay attracted interest. The High Court found the petitioner to be a victim of delay and laches, allowed the writ petition, and ordered release of arrear salary and differential pension within four weeks together with interest at 18% per annum from entitlement date to actual payment; it noted that the awarded interest could be recovered from responsible officials in accordance with the circular, and declined to impose further costs.

Case No.: W.P.(C) No.3511 of 2020 Case Title: Ashok Kumar Kar v. State of Odisha & others Appearances: For the Petitioner(s): Mr. S.K. Mishra, Advocate For the Respondent(s): Mr. G. Rout, A.S.C.