Summary
A retired aided-college professor sought interest after his terminal benefits were paid belatedly. The High Court had left him awaiting resolution of responsibility between the college, its former secretary and the Government. The Supreme Court held that their internal dispute could not prejudice an employee who was not responsible for the delay. It required the college management to pay interest within six weeks, leaving final responsibility and recovery to the Government’s decision after hearing the affected parties.
Issues
- Whether an internal dispute over responsibility justified withholding interest on delayed retirement benefits.
- Who should initially pay and how final liability should be determined.
Held
- The employee was not responsible for the delayed retirement payments and was entitled to interest. The dispute between the management, former secretary and Government could not require him to bear the consequences of that delay. (¶ 4)
- In light of the inquiry report, the college management was required to pay interest first, subject to the Government’s final decision on objections after hearing the affected parties. That arrangement did not finally fix personal liability on the former secretary. (¶ 4-5)
- Interest was directed from retirement until actual payment of the benefits, payable strictly within six weeks. The management could recover the payment from the person ultimately found responsible for the delay. (¶ 5)
- The Government was to finalise the inquiry report after an opportunity to the college, management and former secretary. Any aggrieved party remained free to challenge that decision before the appropriate forum. (¶ 5)
Result
Appeal allowed. The orders denying effective interest relief were set aside. The college, management and trustees were directed to pay interest from retirement until actual payment within six weeks, with final liability and recovery subject to the Government’s decision after hearing the affected parties.