Authority: High Court at Calcutta (Constitutional Writ Jurisdiction)

Order Date: 19 August 2026

Case Overview

  • Petitioner: Sambhu Nath Adak, retired employee of Calcutta State Transport Corporation (CSTC), retired on 28 February 2023.
  • Respondents: The State of West Bengal and others, including CSTC.
  • Petition sought interest on delayed payment of Provident Fund, Leave Salary, and Gratuity, which were paid belatedly.
  • Court observed that interest should be paid at simple rate of 6% per annum from the date of retirement until actual payment, and ordered payment within twelve weeks of communication of this order.
  • If the interest is not cleared within the stipulated period, an additional 2% simple interest (total 8%) shall accrue from the retirement date.
  • The State authorities are directed to provide necessary funds to CSTC for payment of the interest.
  • No order as to costs; urgent certified copy may be issued on priority.

Final Outcome

  • The Managing Director of CSTC must pay the petitioner interest at 6% per annum on delayed terminal benefits, within twelve weeks; failure to do so triggers an additional 2% interest, and the State must ensure funds are available. No costs awarded.

Topics: Interest on Delayed Benefits, Employee Compensation