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Central Government cannot deny the interest on delayed payment of ex-gratia amount to the applicant for a mistake or delay committedby official.

Writer's picture: Legal HandLegal Hand

Updated: Nov 9, 2024

Name of Court: Central Administrative Tribunal, Allahabad

Case no. : Original Application No. 330/00766/2021

Name: Shakumtala Devi vs. UOI

Arguing Counsel: Deepak Maurya

Brief Facts:

Demise of Late Shri Jeet Bahadur Yadav: Late Shri Jeet Bahadur Yadav, husband of applicant No. 1, was employed as SDE (MS) in the office of TDM, Jaunpur. He tragically passed away on 03.03.2011 in a serious accident at Seehipur Railway crossing Jaunpur while commuting to the office in a departmental vehicle.

Settlement of Family Pension: The family pension case of the applicants was settled in the year 2011.

Application for Ex-gratia Payment: Following her husband's demise, applicant No. 1 filed an application on 02.08.2016 for the payment of ex-gratia. The application was forwarded to the concerned authority, leading to a delay of over 09 years before a payment order was issued on 23.01.2018, and finally disbursed on 24.11.2020.

Claim for Interest: The applicants made several representations seeking interest for the period from 2009 to 2020. However, their claim was rejected by the respondents through the impugned order dated 31.07.2021, prompting the filing of the present Original Application.

Arguments by Counsels: The applicants' counsel argued for the payment of interest on the delayed ex-gratia payment, citing precedents from various High Courts and the Central Administrative Tribunal (CAT). Conversely, the respondents' counsel contended that there is no provision for interest on ex-gratia payments, asserting that no delay occurred in processing the application.

Observation and Decision: The Tribunal acknowledged the primary concern of interest on delayed payments. Relying on legal precedents, it held that the family of the deceased employee is entitled to interest on delayed ex-gratia payments, especially when caused by the respondents' delays or mistakes. The Tribunal directed the respondents to pay simple interest at 6% per annum on the ex-gratia compensation and the difference in provisional family pension from 04.06.2011 to 24.11.2020, within three months from the date of the order. No costs were awarded, and all associated motions were disposed of.

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