MANU/WB/0412/2021

True Court CopyTM

IN THE HIGH COURT OF CALCUTTA

W.P.A. No. 10411 of 2021

Decided On: 21.06.2021

Appellants: Sanjib Kumar Das Vs. Respondent: The Durgapur Projects Limited and Ors.

Hon'ble Judges/Coram:
Shampa Sarkar

DECISION

Shampa Sarkar, J.

1. The writ petitioner joined Durgapur Projects Limited, a Government of West Bengal Enterprise, on August 18, 1980. Durgapur Projects Limited is a State under Article 12 of the Constitution of India. The petitioner has alleged that the delay on the part of the employer in paying the retirement benefits along with leave encashment, etc. entitles the petitioner to claim interest on all retiral benefits on account of delayed payment. The right of retired employees to get interest on account of delayed payment of pension, gratuity and other retirement benefits was elaborately discussed and upheld by the Hon'ble Apex Court in the matter of S.K. Dua vs. State of Haryana & Anr. reported in MANU/SC/7048/2008 : (2008) 3 SCC 44. Such right was declared by the Hon'ble Apex Court to be a constitutional right.

2. The petitioner retired from service on January 31, 2019. The gratuity and leave encashment were released on August 13, 2020. The petitioner made a representation for payment of interest on account of such delayed payment. The representation of the petitioner was not responded to.

3. Aggrieved, the petitioner has moved this Court under Article 226 of the Constitution of India and prayed for interest on delayed payment of gratuity and leave encashment. Reliance has been placed on a decision of the Hon'ble Apex Court in the matter of The State of Andhra Pradesh & Anr. vs. Smt. Dinavahi Lakshmi Kameswari in Civil Appeal No. 399 of 2021. The Hon'ble Apex Court at paragraph 14 of the said judgment has categorically held that interest on delayed payment of any salary due to any employee was payable by the employer. Paragraph 14 of the said judgment is quoted below:

"14. The direction for the payment of the deferred portions of the salaries and pensions is unexceptionable. Salaries are due to the employees of the State for services rendered. Salaries in other words constitute the rightful entitlement of the employees and are payable in accordance with law. likewise, it is well settled that the payment of the pension is for years of past service rendered by the pensioners to the State. Pensions are hence a matter of a rightful entitlement recognised by the applicable rules and regulations which govern the service of the employees of the State. The State Government has complied with the directions of this Court for the payment of the outstanding dues in two tranches. In so far as the interest is concerned, we are of the view that the rate of 12% per annum which as been fixed by the High Court should be suitably scaled down. While learned counsel for the respondents submits that the award of interest was on account of the action of the Government which was contrary to law, we are of the view that the payment of interest cannot be used as a means to penalize the State Government. There can be no gain saying the fact that the Government which has delayed the payment of salaries and pensions should be directed to pay interest at an appropriate rate."

4. Mr. Banerjee, further places reliance on an order of this Court by which the Durgapur Projects Limited, the respondent, employer of the petitioner herein, had been directed to pay interest on leave encashment as also gratuity at the rate of 6% per annum from the date of retirement to the date of actual payment.

5. Mr. Koley and Mr. Saha, learned Advocates who appear on behalf of the respondents draw the attention of this Court to an order of the Division Bench of this Court passed in MAT No. 108 of 2020 dated March 11, 2020. According to Mr. Koley, although the Division Bench granted interest on gratuity but did not award interest on l........