Authority: High Court at Calcutta
Order Date: 22 July 2026
Case Overview
- Petitioner: Sukumar Mondal, retired employee of Calcutta State Transport Corporation (CSTC), retired on 31 October 2024 upon attaining normal superannuation age.
- Respondents: State of West Bengal and others, including the CSTC.
- Petition seeks interest on delayed payment of Provident Fund, Leave Salary and Gratuity, and inclusion of dearness allowance in the pension received.
- Relies on earlier judgment in WPA 29126 of 2024 (Prosun Talukdar & Ors. v. State of West Bengal) where the Court held that retired employees are entitled to gratuity and pension including dearness allowance per Transport Department memoranda dated 4 September 2025 and 14 January 2026.
Final Outcome
- The Managing Director of CSTC is directed to pay interest on the delayed terminal benefits at a rate of six percent (6%) per annum, calculated from the date of retirement until actual payment, to be effected within twelve weeks from the date of communication of this order.
- The Managing Director must also disburse the dearness allowance component to the petitioner within the same twelve‑week period.
- If the interest on delayed terminal benefits and the dearness allowance are not cleared within the stipulated period, an additional two percent (2%) shall be added, making the total simple interest eight percent (8%) per annum, payable from the date of retirement until actual payment.
- The State authorities are directed to provide any necessary funds to CSTC for the payment of interest and dearness allowance.
- Regarding the petitioner’s claim for accumulated unutilized earned leave, the Court notes that payment for 180 days has already been made; the remaining 120 days shall be paid by 31 August 2026 in accordance with Government Order dated 17 September 2009.
- The writ petition is disposed of with these directions; no order as to costs.
- An urgent photostat certified copy of this order, if applied for, shall be given to the parties on a priority basis.
Topics: Terminal Benefits, Interest on Delayed Payments, Dearness Allowance