14 days before retirement, cop dismissed: Court orders interest on delayed retiral dues

The former police official was dismissed from his service in December 2017 after an accused escaped from police custody just two weeks before his retirement, the Punjab and Haryana High Court noted.

Punjab and Haryana High Court retirement constable cop duesThe court held that he can’t be deprived of the benefit of interest on the delayed release, since he was found innocent in the police inquiry and was acquitted by the trial court. (AI-generated image)

The Punjab and Haryana High Court has ordered the authorities in Punjab to pay 7 per cent annual interest on delayed retirement benefits to a retired police officer after the money, amounting to Rs 13.81 lakh, was withheld for over three years. The man had served in the state police force for more than 35 years and was dismissed just 14 days before his retirement in December 2017 after an accused escaped from custody.

The officer was later reinstated, found innocent in a departmental inquiry and acquitted in the criminal case, but his Rs 3.81 lakh pension arrears and Rs 10 lakh gratuity were released only in November 2021.

Justice Namit Kumar was hearing the plea by one Balwinder Singh, who sought 18 per cent annual interest on the delayed payment. The authorities had rejected his claim in September 2021.

“The delay in release of the retiral dues cannot be attributed to any fault or omission on the part of the petitioner (police official), and he is, therefore, entitled to interest on the delayed payments of arrears of pension and gratuity,” the September 11 order read.

Received retiral benefits after 3 years

Singh claimed that he was appointed as a constable in the Punjab Police in June 1982. During his service, he was promoted to the post of head constable in 1991 and assistant sub-inspector in 2011.

Justice Namit Kumar Punjab and Haryana High Court retirement constable cop dues Justice Namit Kumar said the retiral dues should have been released within a ‘reasonable period’ of the cop’s reinstatement.

It was stated that just 14 days before his retirement, on December 18, 2017, an accused, Varinder Singh, escaped from police custody at Guru Nanak Dev Hospital, Amritsar. Singh and other police officials were held responsible for the escape. An FIR was registered, and Singh was arrested and later released on bail. On December 22, 2017, he was dismissed from service along with other police officers.

However, on April 19, 2018, Singh was reinstated with all consequential benefits. Since he had already reached the retirement age, he was treated as having retired from December 31, 2017.

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A police inquiry later declared him innocent, while the trial court acquitted him in the criminal case in September 2024. His pension arrears of Rs 3.81 lakh and gratuity of Rs 10 lakh were released only on November 1, 2021, more than three years and six months after the reinstatement order.

‘Not intentional delay’

The man, through advocate P M Kansal, argued that since there is a considerable delay in releasing the arrears of pension and gratuity, he is entitled to interest on the delayed payments.

Additional Advocate General Siddharth Sandhu submitted that the delay in releasing the amount was due to the pendency of the criminal case against him, and it was not intentional.

‘Singh was found innocent’

The high court noted that Singh served the police department for over 35 years, and was expected to retire on December 31, 2017. It found that, after being dismissed, he was reinstated again after the date of retirement.

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The judge mentioned that Singh’s retiral dues should have been released within a “reasonable period” from the date of his reinstatement. “However, arrears of pension amounting to Rs 3.81 lakh and gratuity amounting to Rs 10 lakh were released to the petitioner only on November 1, 202, after an inordinate delay of more than three years and six months from the date of order of reinstatement in service,” it noted.

The court held that he cannot be deprived of the benefit of interest on the delayed release, particularly when he was found innocent in the police inquiry and was also acquitted by the trial court in 2024.

Accordingly, the petition was allowed with a direction to the authorities to pay interest at the rate of 7 per cent per annum on the delayed payments of arrears of pension and gratuity of the petitioner from June 2018 till the actual date of payment, within a period of two months from this order.

Richa Sahay is a Legal Correspondent for The Indian Express (Digital), where she focuses on simplifying the complexities of the Indian judicial system. A law postgraduate, she leverages her advanced legal education to bridge the gap between technical court rulings and public understanding, ensuring that readers stay informed about the rapidly evolving legal landscape. Expertise Advanced Legal Education: As a law postgraduate, Richa possesses the academic depth required to interpret intricate statutes and constitutional nuances. Her background allows her to provide more than just summaries; she offers context-driven analysis of how legal changes impact the average citizen. Specialized Beat: She operates at the intersection of law and public policy, focusing on: Judicial Updates: Providing timely reports on orders from the Supreme Court of India and various High Courts. Legal Simplification: Translating dense "legalese" into accessible, engaging narratives without sacrificing factual accuracy. Legislative Changes: Monitoring new bills, amendments, and regulatory shifts that shape Indian society. ... Read More

 

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