S.R. BHANRALE vs UNION OF INDIA .

The Supreme Court held that the Union of India failed to fulfill its statutory obligation under the relevant service rules to settle the appellant's retirement benefits by the due date, violating principles of natural justice. The Court emphasized that the delay in payment of dues, including leave encashment and increment arrears, warranted compensation for the hardship caused to the appellant. The Court directed the Union of India to pay the appellant the outstanding amounts along with interest, thereby upholding the appellant's claims for delayed payments.