VidhiSangh

Supreme Court of India · 08/03/2019

CHIEF GENERAL MANAGER GUJARAT TELECOM CIRCLE, BHARAT SANCHAR NIGAM LTD. & ORS. versus MANILAL AMBALAL PATEL & ANR.

[2019] 4 S.C.R. 1034 · 2019 INSC 337

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Summary

The Supreme Court set aside interest on commuted pension from retirement because the employee had not made the required pre-retirement commutation application and received payment within a reasonable time after his later application. It distinguished commuted pension from gratuity and expressly left the award of interest on gratuity undisturbed.

Issues

  1. Whether interest on commuted pension could run from retirement without a timely pre-retirement application.
  2. What effect the provisional-pension order and earlier proceedings had on that claim.

Provisions considered

Held

Result

Appeal allowed to the extent of setting aside the Tribunal’s direction for interest on commuted value of pension. Interest on gratuity not interfered with. No order as to costs.

Judgment PDF: Supreme Court of India, [2019] 4 S.C.R. 1034.