Dat SUS v. State of Punjab and others State o CW CWP
Case Details
1 CWP-20943 0943-2023& connected matters N THE HIGH COURT OF PUNJA IN TH NJAB AND HARYANA AT CHANDIG ANDIGARH 252(15 cases cases) 1. Gurdas Gurdas Singh CWP-20943-2023 CW , 2025 Date of Decision: August 21, 2025 Dat SUS VERSUS State of Punjab and others State o CW CWP-22785-2022 2. Bhajan Singh Bhajan SUS VERSUS State of Punjab and others State o CW CWP-22849-2022 3. Darshan Kumar Darsha SUS VERSUS State of Punjab and others State o CW CWP-22978-2022 4. Balvir Singh Balvir SUS VERSUS State of Punjab and others State o itioner .....Petitioner .....Responden ondents itioner .....Petitioner .....Responden ondents itioner .....Petitioner .....Responden ondents itioner .....Petitioner .....Responden ondents CW CWP-22983-2022 5. Harjinder Singh Harjind .....Petitioner SUS VERSUS State of Punjab and others State o .....Respondent dents PUNEET CHAWLA 2025.09.02 11:44 I attest to the accuracy and integrity of this document 2 CWP-20943 0943-2023& connected matters CW CWP-24464-2022 6. Harnail Singh Harnai SUS VERSUS State of Punjab and others State o CW CWP-24473-2022 7. Ranjit Singh Ranjit SUS VERSUS State of Punjab and others State o CW CWP-24475-2022 8. Inderpal Singh Inderp SUS VERSUS State of Punjab and others State o CW CWP-24503-2022 9. Randhir Singh Randh SUS VERSUS State of Punjab and others State o CW CWP-20938-2023 10. Balwin Balwinder Singh SUS VERSUS State of Punjab and others State o itioner .....Petitioner .....Responden ondents itioner .....Petitioner .....Responden ondents itioner .....Petitioner .....Responden ndents itioner .....Petitioner .....Responden ondents itioner .....Petitioner .....Responden ondents PUNEET CHAWLA 2025.09.02 11:44 I attest to the accuracy and integrity of this document 3 CWP-20943 0943-2023& connected matters CWP-2094 20940-2023 11. Ranjit Ranjit Singh SUS VERSUS State of Punjab and others State o CW CWP-12923-2023 12. Gurjan Gurjant Singh SUS VERSUS State of Punjab and others State o CW CWP-29649-2022 13. Ajaib S Ajaib Singh SUS VERSUS State of Punjab and others State o CW CWP-29769-2022 14. Kulwa Kulwant Singh SUS VERSUS State of Punjab and others State o itioner .....Petitioner .....Responden ondents itioner .....Petitioner .....Responden ondents itioner .....Petitioner .....Responden ondents itioner .....Petitioner .....Responden ondents 15. Nirmal Nirmal Singh PUNEET CHAWLA 2025.09.02 11:44 I attest to the accuracy and integrity of this document CW CWP-29893-2022 SUS VERSUS itioner .....Petitioner 4 CWP-20943 0943-2023& connected matters State of Punjab and others State o .....Responden ondents CORAM:
Legal Reasoning
upg. f this Court in A.S. Randhawa Supg. Engineer (R r (Retd.) vs. State of Punjab 19 d that b 1998 (1) SCT 343 opined that disbursement ement of pension and other benefits ust be nefits payable at retirement must be done in a tim n a timely manner. Any delay over a ua the ver a period of two months, qua the said disburse sbursement would entitle the retired em on the ired employee to claim interest on the amount due. t due. Speaking through Justice N.K. S N.K. Sodhi, the following was held: “9. Si immed . Since a Government employee mediately entitled to pension and mes oyee on his retirement becomes the and other benefits in terms of the PUNEET CHAWLA 2025.09.02 11:44 I attest to the accuracy and integrity of this document 8 CWP-20943 0943-2023& connected matters Pensio disbur time. circum month down the Sta denyin there i and, in interes the da interes circum rate wh nsion Rules, a duty is simultaneousl sbursement of pension and other b e. As to what is proper time w rcumstances of each case but norm onths from the date of retirement wn by the Apex Court in M. Padma e State commits any default in the p nying to the retiree the benefit of th ere is no gainsaying the fact that he in our opinion, the only way to terest for the period of delay on the e date of his retirement. Again, as it should, in our view, terest, rcumstances of a particular case wa te which may extend to even 18%.”( ously cast on the State to ensure the the er benefits to the retirer in proper oper and e will depend on the facts and normally it would not exceed two two ent which time limit has been laid laid ). If admanabhan Nair's case (supra). If the performance of its duty thereby reby of the immediate use of his money, ney, ated t he gets a right to be compensated to compensate him is to pay him him n the amount as was due to him on on e of , as to what should be the rate of the the w, be generally 12% unless gher e warrant the payment of a higher .”(emphasis added) Reliance in this regard may als ments ay also be placed on the judgments rendered by ed by the Hon’ble Supreme Court in ana urt in S.K. Dua vs. State of Haryana (2008) 3 SCC SCC 44 and State of Kerala vs. M 5) 1 s. M. Padmanabhan Nair (1985) 1 SCC 429. 11.
Arguments
HON'BLE MR. JUSTICE HA HARPREET SINGH BRAR Present : Mr. Vikas Singh, Advocate for th e for the petitioner(s). Mr. Vikas Arora, DAG Punjab- -State. **** HARPREET REET SINGH BRAR, J. (Oral) 1. This order of mine shall dispo tioned dispose of all the above-mentioned writ petitions titions as they arise from a similar fa or the ilar factual matrix. However, for the sake of brevit brevity, the facts are taken from CWP CWP-20943-2023. 2. The present writ petition has be 6/227 has been filed under Article 226/227 of the Consti Constitution of India with a prayer for e writ, er for issuance of an appropriate writ, order or dir or directions especially in the natu ri for nature of mandamus/certiorari for directing the ng the respondents to pay the gratuit to the gratuity and leave encashment to the petitioner(s) ner(s) and also pay 12% interest on th atuity t on the delayed payment of gratuity and leave enc ve encashment. 3. Learned counsel for the petitione ioners etitioner(s) submits that the petitioners in all the wr the writ petitions are seeking their r y and their retiral benefits i.e. gratuity and leave encash encashment along with interest. Lear tioner t. Learned counsel for the petitioner further placed placed reliance on judgment passed b awa ssed by full Bench in A.S. Randhawa Vs. State of P e of Punjab and others, 1997(3) SCT lay in ) SCT 468 on the ground of delay in disbursing th ing the retiral benefits. 4. In the reply filed by respondents raised ndents No.4 and 5 objection is raised with regard t gard to the maintainability of the pres at the e present petition and further that the Cooperative rative Society is running into losses a ds, as sses and there is paucity of funds, as PUNEET CHAWLA 2025.09.02 11:44 I attest to the accuracy and integrity of this document 5 CWP-20943 0943-2023& connected matters such, respond espondent No.5 is not in a position to of the tion to disburse the retiral dues of the petitioner(s) a ner(s) and prayed for dismissal of the p f the present writ petitions. 5. I have heard the contentions ra or the ons raised by learned counsel for the parties. 6. It transpires that the right of an ratuity of an employee for claiming gratuity is covered u ered under the Payment of Gratuity ervice atuity Act, 1972. Further the service rules of the r f the respondent No.5 provides that th rative hat the employees of the cooperative society are e are entitled to claim gratuity in term State in terms of Rule 19(A), Punjab State Cooperative rative Agricultural Service Society Se er, in iety Service Rules, 1997. Further, in terms of the of the judgment of full Bench of th vs. h of this Court in Jasbir Singh vs. Commissione sioner(Appeals), Jalandhar Divisio CR ivision and others, 2011(4) RCR (Civil) 1 and and in CWP No.27527 of 2017Kris tate Krishan Kant Versus Punjab State Cooperative tive Agricultural Development Ban herein Bank Limited and others, wherein it has been he een held that :- “37. There are three categories n be ories of Service Rules which can be framed to regulate the condition es of itions of service of the employees of the Society. In first category, the ry, a registered Society under the Societies Act can frame its own the own Service Rules to regulate the service conditions of its employ ding ployees. The Rules may be binding between the Society and its emp y of employees. The second category of the Rules is those rules which tion hich are formulated under Section 85(2) (xxxviii), which empow ame power the Government to frame Service Rules for any Co-ope s of operative Society or for class of societies with regard to qual of a qualifications for employees of a Society or class of society and t ject nd the conditions of service subject to which persons may be emplo s so ployed by Societies. Such Rules so framed have the force of St be f Statute and are deemed to be PUNEET CHAWLA 2025.09.02 11:44 I attest to the accuracy and integrity of this document 6 CWP-20943 0943-2023& connected matters incorporated as a part of the iple the Statute, whereas this principle does not apply to the first cat the t category of Rules framed by the Society because those Rules rnal ules merely govern the internal management, business or admin are dministration of a society. They are of the nature of the Articles any les of Association of a Company incorporated under the Compa ding mpanies Act. They may be binding between the persons affected by the d by them, but they do not have the force of a statute. But the sec the e second category of Rules is the Statutory Rules and they have th arly, ve the force of the statute. Similarly, there is third category of Rul adre Rules known as Common Cadre Rules. These rules could have b A ve been framed under Section 84-A of the Punjab Act which provid suo ovide that an apex society may suo motu and when required to hall to do so by the Registrar shall constitute a common cadre of al oyee of all, or specified class of employee in the service of that society o tral ty or in the service of the central societies which are members the ers of the apex society or in the service of the primary societies apex ties which are members of the apex society. Sub-section (2) further mon ther provides that when a common cadre of employee is constitu the stituted under sub-section (1), the Registrar shall notwithstanding law ding anything contained in any law for the time being in force or t or e or any agreement, settlement or award determine the pay scales le to cales and allowances admissible to such employees and Apex Soc the Society shall make rules for the regulation of recruitment and such and conditions of service of such employees with the prior appro fore, pproval of the Registrar. Therefore, the Common Cadre Rules fram the ramed under sub-section (2) by the Registrar are also having the st the e statutory colour and stand on the same footing as that of the Statu tatutory Rules.” 7. The Full Bench of this Court ha ervice ourt has already held that the Service Rules are stat re statutory and binding, in nature and us to and, thus, the writ of mandamus to enforce the sa e the same would be maintainable in vi le in view of settled law. PUNEET CHAWLA 2025.09.02 11:44 I attest to the accuracy and integrity of this document 7 CWP-20943 0943-2023& connected matters 8. In view of the judgment m writ ent mentioned herein-above, writ jurisdiction c ction can be invoked in case of violati t case violation of Rules. In the present case the gratuity i tuity is being denied on the ground th ociety und that the respondent No.5-Society is running in ing into losses and however, the sala ongly e salary of the petitioner(s) wrongly fixed, howev however, no particulars have been plac e. The en placed on record for the same. The issue with re ith regard to society running into los es has to losses to deny the retiral dues has been dealt w ealt with by this Court in CWP-2652 ses in 26520-2014 and connected cases in Kulbir Singh ingh Versus Pepsu Road Transp ther. ansport Corporation and another. This Court h ourt has specifically held that the emp ed on he employees cannot be penalized on account of an t of any mismanagement or losses suff es suffered by the respondents. 9. An employee has a right to claim ent of o claim gratuity under the Payment of Gratuity Act, ty Act, 1972. If an employee is entitl er the s entitled for gratuity even under the service rules rules, then it is option of an empl or the employee to choose either for the payment und nt under the Payment of Gratuity Act, rules, y Act, 1972 or from the service rules, which is bene is beneficial to them. 10. In view of the fact that the contr denial controversy stands settled, the denial of retiral ben al benefits to a delay that is attributa trative tributable solely to the administrative action of the of the employer. A Full Bench of this
Decision
In view of the above, all the civ sed of the civil writ petitions are disposed of with a directi direction to respondents/concerned aut ars of ed authority to disburse the arrears of salary, gratui gratuity and leave encashment. The sa ulated The said amount should be calculated within a peri a period of three months and after c ld be after calculation, the same should be paid within ithin next one month. Respondents urther ndents/concerned authority is further directed to p d to pay interest on the delayed paym its i.e. payment towards retiral benefits i.e. gratuity, sala y, salary and leave encashment @ 6 % m the @ 6 % interest per annum, from the date of filing filing of present petition, in terms of awa rms of the judgments A.S. Randhawa and S.K. Dua . Dua (supra). 12. Pending miscellaneous applicat stands plication(s), if any, shall also stands ed of. disposed of. 13. Photocopy of this order be pl ected be placed on the file of connected PUNEET CHAWLA 2025.09.02 11:44 I attest to the accuracy and integrity of this document 9 CWP-20943 0943-2023& connected matters cases. RAR) (HARPREET SINGH BRAR) JUDGE August 21, 2 P.C , 2025 Whether speaking/reasone Whether Reportable. : easoned. : Yes/No Yes/No PUNEET CHAWLA 2025.09.02 11:44 I attest to the accuracy and integrity of this document