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PETITIONER: UNION OF INDIA

       Vs.

RESPONDENT: SHRI UJAGAR LAL

DATE OF JUDGMENT:       07/10/1996

BENCH: K. RAMASWAMY, G.B. PATTANAIK

ACT:

HEADNOTE:

JUDGMENT:                          O R D E R      Though notice was sent to the respondent on May 8, 1992 till date  neither  the  acknowledgment  card  nor  unserved notice has  been received  back. Under  those circumstances, notice must be deemed to have served.      Leave granted.      The only question argued in this appeal is: whether the respondent is  entitled  to  the  payment  of  interest  for failure to  release the  death-cumretirement gratuity  under the Rules?  The Tribunal  in  the  impugned  order  made  on 22.11.1990 in  OA No.1383/90  directed interest  @ 7%    per annum for  the first  twelve months  and @ 10% per annum for the period  thereafter The  admitted position  is  that  the respondent was  unauthorisedly in  occupation of the quarter allotted to  him and  therefore, he  was not paid death-cum- retirement gratuity  since the  respondent had  remained  in possession unauthorisedly  for more  than  two  years.  This question was considered by this Court in Raj Pal Wahi & Ors. vs. Union  of India & Ors. [SLP (C) Nos.7688-9l/88]  decided on 27.11.1989 and held that in those circumstances the Court unable to  hold that  the petitioners  are entitled  to  get interest for  the delayed  payment  of  death-cum-retirement gratuity as  the delay  in payment occurred due to the order passed on  the basis  or the  said circular of Railway Board and not on account of administrative lapse. In this case, in view of  the circular issued by the administration directing not to  make payment  of death-cum-retirement  gratuity till the retired  employee surrenders  possession, the  delay  in payment was  not due  to any  administrative  lapse  but  on account of  the circular  issued by  the Board.  Under these circumstances,  the   respondent  is  not  entitled  to  the interest as directed by the Tribunal.      The appeal is accordingly allowed. No costs.