New Delhi/Chandigarh: The Principal Bench of the Central Administrative Tribunal (CAT) in New Delhi has issued a notice to the Punjab government on a petition filed by Shabri Prasad, daughter of late Punjab-cadre IPS officer R C Prasad, seeking statutory interest on delayed pension arrears.
Shabri Prasad, the unmarried daughter of the 1976-batch officer who died in service in December 2003, has long been a legitimate recipient of family pension under Rule 54 of the Central Civil Services (Pension) Rules, 1972.
However, her pension was discontinued when she turned 25, despite government clarifications stating that unmarried and dependent daughters remain eligible for family pension even after that age.
Pension Restored After Years, But No Interest Paid
Her pension was restored only in 2020, following multiple representations to state authorities. She eventually received arrears amounting to ₹43.61 lakh, paid in three installments. However, these arrears were paid without the statutory interest mandated by Rule 65(2) of the CCS (Pension) Rules, which states that in cases of administrative delay, interest must be paid.
The unpaid interest, calculated at 9% per annum, amounts to approximately ₹43.21 lakh, almost equaling the pension arrears.
“Not Just Financial – It’s About Fairness”
In her plea before CAT, Shabri Prasad emphasized the emotional and legal toll of her 20-year struggle. “My father served Punjab Police with honour and integrity. After his passing, I’ve had to fight every step to secure what is legally and morally due to me,” she wrote in her representations.
She submitted that numerous letters and emails, including those dated September 2024, were sent to senior Punjab officials, but no action was taken regarding the interest component.
CAT Hearing Set for August 27
The CAT bench had last heard the matter on July 14, 2025, and has now directed the Punjab government to file its response by August 27.
Legal experts say this case could set a precedent for others in similar situations. “The law is clear – when the delay is due to administrative lapse, the beneficiary is entitled to interest. Denial of such interest not only violates the rules but undermines the very spirit of pensionary benefits,” a former bureaucrat familiar with pension regulations said.
