The Punjab and Haryana High Court has ordered the Punjab government to pay 7% annual interest on pension and gratuity amounts due to the delay in releasing retirement benefits. The case concerns Balwinder Singh, a retired Punjab Police employee. The Court directed that interest be paid from June 20, 2018, until the date of actual payment, and that the entire amount be disbursed within two months.
Read the full details of the case
Balwinder Singh, a resident of Amritsar, was recruited as a constable in the Punjab Police on June 11, 1982. During his service, he was promoted to the ranks of Head Constable and subsequently Assistant Sub-Inspector. He was due to retire on December 31, 2017; however, just 14 days prior—on December 18, 2017—a case was registered against him regarding the escape of an accused person from police custody at Guru Nanak Dev Hospital, Amritsar, and he was dismissed from service on December 22. Balwinder Singh filed a revision petition against his dismissal. On April 19, 2018, the police department accepted the petition, ordering his reinstatement effective from December 22, 2017, and the grant of all outstanding benefits. Due to his age, he was deemed retired as of December 31, 2017. He was also exonerated in the departmental inquiry. Later, on September 24, 2024, the Judicial Magistrate acquitted Balwinder Singh in the criminal case.
The department released the interim pension, leave encashment, and Provident Fund (PF) amounts; however, the pension arrears of ₹3,81,569 and the gratuity of ₹10 lakh were paid on November 1, 2021. Consequently, there was a delay of over three and a half years in the payment of these two amounts following the reinstatement order. The government argued in court that the delay was due to a pending criminal case and was not intentional. Justice Namit Kumar observed that since the employee had been reinstated effective from the date of his dismissal and was also deemed to have retired, his retirement benefits should have been released on time. Citing previous judgments, the Court stated that a retired employee has a right to receive their pension and other retirement benefits in a timely manner; typically, such payments should be made within two months of retirement. On this basis, the High Court ordered the payment of 7% annual interest for the period from June 20, 2018, until the actual payment is made.
