Anonymous
125

I am a retired Central Government employee. My gratuity and commutation value of pension were withheld for a long period because of the pending disciplinary proceedings. The proceedings have since been quashed and set aside by the CAT and the decisions have been upheld by the High Court.

In a separate proceeding the High Court had ordered the payment of gratuity and commutation amount with interest at "GPF Rates". Union of India had filed an SLP. The Supreme Court dismissed the Petition.

The Competent Authority has issued sanctioned the payment if interest, but simple interest as applicable to GPF deposits.

However, according to the GPF Rules (Rule 11) interest is required to be compounded annually.
" 11. Interest -(1) Subject to the provisions of sub-rule (5), Government shall pay to the credit of the account of a subscriber interest at such rate as may be determined for each year according to the method of calculation prescribed from time to time by the Government of India."

Is the Government is justified in sanctioning only simple interest without adding interest annually?

If the action is wrong, what is the remedy? Is it in filing an Implementation Petition or Original Application before the CAT?

From India, Kochi
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