State of Haryana directed to pay 6% interest on delayed financial assistance; Finance Secretary's salary to be withheld for three months for accountability.
In a significant ruling, the Punjab and Haryana High Court has issued a directive for the State of Haryana to pay 6% interest on delayed compassionate financial assistance and ex-gratia payments to the petitioner, Chhbeel Kumar. The court emphasized the need for immediate financial relief to bereaved families and criticized the delay in disbursing payments due to financial and budgetary constraints.
Presiding over the case, Justice Sandeep Moudgil highlighted that the delay in disbursement of ex-gratia assistance undermines the purpose of providing timely support to families following the untimely demise of an employee. The court ruled that interest is necessary to compensate for the delay and to prevent authorities from benefitting from their inaction.
Referring to landmark judgments in cases such as "S.K Dua v. State of Haryana" and "D.D. Tewari (D) through LRs v. Uttar Haryana Bijli Vitran Nigam Ltd.," the court reiterated that individuals are entitled to claim interest on delayed payments under Articles 14 and 21 of the Constitution of India, even in the absence of statutory rules.
The judgment also took a firm stance on institutional accountability, directing that the salary of the Finance Secretary, Department of Education, Haryana, be withheld for three months. This action aims to ensure compliance with lawful financial obligations and to prevent future administrative lapses.
The court ordered the State to release the outstanding payments along with the interest within two weeks from the receipt of the certified copy of the order. This ruling underscores the judiciary's role in safeguarding citizens' rights and ensuring that administrative delays do not infringe upon lawful entitlements.
Bottom Line:
Delayed disbursement of compassionate financial assistance and ex-gratia payment warrants interest as compensation to prevent undue hardship to beneficiaries and ensure institutional accountability.
Statutory provision(s): Articles 14, 21, 226, 227 of the Constitution of India
Chhbeel Kumar v. State of Haryana, (Punjab And Haryana) : Law Finder Doc id # 2867952
