STATE OF KERALA vs V. PADMANABHAN NAIR

The Supreme Court held that pension and gratuity are valuable rights of employees, not mere bounties, and any culpable delay in their payment must incur interest at the current market rate until actual payment, as per Rule 186 of the Treasury Code. In this case, the respondent's pension and gratuity were delayed for over two years, and although he claimed 12% interest, the District Court awarded only 6%. The Supreme Court dismissed the appeal, stating it could not enhance the interest rate due to the absence of a cross-objection from the respondent, who acquiesced in the lower rate awarded by the District Court.