Court affirms denial of Sixth Pay Commission benefits prior to 2010 due to unchallenged government order.
In a significant ruling, the Allahabad High Court, presided by Justice Shree Prakash Singh, has directed the competent authority to pay 7% interest per annum on the delayed payment of gratuity and leave encashment dues to Mishri Lal, a retired employee of the U.P. State Bridge Corporation. The judgment was delivered on February 24, 2026, in response to a writ petition filed by Lal challenging the denial of interest on his delayed retiral dues and the benefits of the Sixth Pay Commission prior to March 26, 2010.
Mishri Lal, who retired on July 31, 2007, had not received his retiral dues until 2014, despite numerous requests. The petitioner argued that the delay in payment of his gratuity and leave encashment was unjust and sought interest on the delayed amount. Furthermore, he claimed entitlement to the benefits of the Sixth Pay Commission from its implementation date, January 1, 2006, which was denied by the corporation based on a government order dated March 26, 2010.
The court, while recognizing the delay in payment of gratuity as a compensable issue, held that retiral dues are valuable rights and not mere bounties. Justice Singh referenced the Payment of Gratuity Act, 1972, emphasizing that employers are obligated to determine and pay gratuity within 30 days of it becoming due, failing which interest is warranted unless the delay is attributable to the employee.
However, the court upheld the corporation's decision regarding the Sixth Pay Commission benefits, stating that the government order implementing the benefits from March 26, 2010, with notional computation from January 1, 2006, remained unchallenged and intact. The court distinguished this case from the Supreme Court's decision in Union of India v. Balbir Singh Turn, which involved an executive order being challenged.
In conclusion, the court partly allowed the writ petition, directing the corporation to pay the interest on delayed retiral dues but affirmed the denial of Sixth Pay Commission benefits prior to March 2010. The ruling underscores the importance of timely disbursement of retiral benefits and clarifies the applicability of pay commission recommendations based on existing government orders.
Bottom Line:
Payment of interest on delayed gratuity and leave encashment dues upheld, but denial of benefits of Sixth Pay Commission prior to 26-03-2010 due to unchallenged government order affirmed.
Statutory provision(s): Payment of Gratuity Act, 1972 Sections 7(1), 7(2), 7(3A)
Mishri Lal v. State of U.P., (Allahabad)(Lucknow) : Law Finder Doc id # 2858020
