High Court Grants Notional Promotion and Interest on Delayed Retirement Dues to Former Employee

In a significant ruling, the Punjab and Haryana High Court has granted Tilok Kumar, a retired employee of Markfed, notional promotion along with interest on his delayed retiral dues. The court, presided over by Justice Namit Kumar, ruled in favor of Kumar, holding that he had been unjustly denied promotion due to pending charges and a criminal case, both of which were later resolved in his favor.

Kumar, who joined Markfed as a Field Sub Inspector in 1975 and retired as a Field Officer in 2012, was denied a promotion to Senior Branch Officer in 2008 due to two pending charge-sheets and a criminal case. However, both charge-sheets were dropped—one in 2012 and the other in 2020—and he was acquitted of criminal charges in 2014. Despite these resolutions, his retiral dues were delayed until 2020, eight years after his retirement.

The court noted that Kumar’s juniors had been promoted in 2008, and if it were not for the pending proceedings, he too would have been promoted. Justice Namit Kumar emphasized that retirement does not extinguish an employee’s right to be considered for promotion, ruling that Kumar was entitled to notional promotion from 2008.

On the issue of retiral dues, the court found that the delay in releasing his benefits was unreasonable. Citing precedents like A.S. Randhawa v. State of Punjab, the court ruled that Kumar was entitled to 6% interest per annum on the delayed dues from October 2012 (three months after his retirement) until the date of actual payment.

Markfed’s argument that the delay in retiral benefits was justified due to the pending disciplinary proceedings was rejected by the court. Justice Kumar directed Markfed to grant Kumar notional promotion to Senior Branch Officer from September 2008 and to pay the interest on the delayed retiral dues within three months.

This ruling underscores the importance of timely consideration for promotion and prompt release of retirement benefits, even when an employee faces disciplinary proceedings during their service.