Champaka Sarkar Awarded 8% Interest on Gratuity

Authority: High Court at Calcutta, Circuit Bench at Jalpaiguri

Order Date: 16 June 2026

Case Overview

• Petitioner: Champaka Sarkar, former Head Teacher, Uttarpara S.P. School, District Coochbehar, retired on 31 Oct 2019.
• Respondents: State of West Bengal, Director of Pension, Provident Fund and Group Insurance, Government of West Bengal, and Treasury Officer, Mekhliganj.
• Petition sought interest on delayed gratuity and arrear pension at 18% per annum from retirement date to actual payment.
• Gratuity and arrear pension were paid on 4 Apr 2020 without any interest.
• Court noted that delay does not defeat the right to interest and cited Union of India vs. Tarsem Singh (2008) 3 SCC 648.

Final Outcome

• Court directed respondents to pay interest at 8% per annum on the gratuity and arrear pension amount, calculated from the day after retirement until actual payment.
• Payment to be made within six weeks of the order.
• Petitioner’s counsel directed to communicate the order to the Director of Pension and Treasury Officer for compliance.
• No costs awarded; any interim orders vacated; connected applications disposed.

Topics: Pension, Interest on Delayed Payments