The Orissa High Court noted that the pendency of disciplinary proceedings, which were ultimately quashed, do not justify denying interest on the delayed settlement. (Image generated using AI)Orissa High Court news: The Orissa High Court recently held that pension is not a bounty but a constitutional guarantee and retirement benefits are property under the right to property, while directing the government to pay 12 per cent interest to a retired employee for over seven years’ delay in releasing his terminal benefits.Justices Krishna S Dixit and Chittaranjan Dash were hearing the plea of a retired employee, Debabrata Ray, and found that he had suffered a lot to hold his body and soul together without a pension. Justices Krishna S Dixit and Chittaranjan Dash observed that the tribunal had failed to properly consider the material aspects of the case.Ray challenged the Cuttack Central Administrative Tribunal’s order of February 24, 2026, that denied him interest on the delayed payment of terminal benefits and the cost of litigation, which he was compelled to fight for years.Also Read | ‘Pension not bounty’: Calcutta High Court slams state for denying benefits to doctor’s widow after 22 years of service“Pension is no longer a bounty, but a constitutional guarantee; pension is defined under Article 366(17) of the Constitution of India, as a consideration for the past services rendered by the employee. Further, the terminal benefits constitute property of the retiree and therefore, are protected under Article 300A of the Constitution of India (right to property),” the April 22 order read.ObservationsThe Orissa High Court stated that it hardly needs to be stated that an employee, who retires from service, has to be paid the terminal benefits, including the pension, within a reasonable time, and that cannot be beyond three months in any circumstance not attributable to his guilt.It found that the petitioner retired from service on April 30, 2015, and the terminal benefits were settled only on May 12, 2022.The court held that this constituted a delay of more than seven years and was therefore liable to carry interest at a reasonable rate.The Orissa High Court also noted that the pendency of disciplinary proceedings, which were ultimately quashed by the tribunal and affirmed by the co-ordinate bench, would not constitute any justification for denying interest on the delayed settlement of terminal benefits and litigation costs.The court directed that interest at the rate of 12 per cent per annum be paid from the date of retirement on the delayed settlement of terminal benefits, holding that such a direction would do justice.It further observed that the tribunal had failed to properly consider the material aspects of the case, resulting in a gross error apparent on the face of the record.The petitioner is entitled to costs of Rs 50,000 towards the legal battles, which he was avoidably made to fight, albeit successfully, the Orissa High Court ruled.Also Read | Can second wife claim family pension after first wife’s death? Punjab and Haryana High Court says noArgumentsAppearing for the petitioner, advocate K Mohanty argued that a pension is not a bounty and whenever there is an unjustifiable delay in settling the terminal benefits, the employer has to pay interest.He also took the court through certain other proceedings that the petitioner had successfully launched earlier for the quashment of unfounded disciplinary proceedings.Representing the state, senior panel counsel B S Rayaguru mentioned the charges in the disciplinary proceedings. He pointed out that the proceedings were later quashed by the tribunal, and a challenge to the same before a co-ordinate bench of this court ended in vain.Story continues below this adHe fairly conceded before the Orissa High Court that some interest was payable in law.Richa Sahay is a Legal Correspondent for The Indian Express, where she focuses on simplifying the complexities of the Indian judicial system. A law postgraduate, she leverages her advanced legal education to bridge the gap between technical court rulings and public understanding, ensuring that readers stay informed about the rapidly evolving legal landscape. Expertise Advanced Legal Education: As a law postgraduate, Richa possesses the academic depth required to interpret intricate statutes and constitutional nuances. Her background allows her to provide more than just summaries; she offers context-driven analysis of how legal changes impact the average citizen. Specialized Beat: She operates at the intersection of law and public policy, focusing on: Judicial Updates: Providing timely reports on orders from the Supreme Court of India and various High Courts. Legal Simplification: Translating dense "legalese" into accessible, engaging narratives without sacrificing factual accuracy. Legislative Changes: Monitoring new bills, amendments, and regulatory shifts that shape Indian society. ... 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