Authority: Calcutta High Court

Order Date: 07 July 2026

Case Overview

  • Parties: Petitioner – Chanchal Kumar Deb, retired employee of Calcutta State Transport Corporation (CSTC); Respondents – The State of West Bengal & Ors., represented by Ms. Aparna Banerjee (AGP) and others; CSTC represented by counsel.
  • Nature of Proceeding: Writ Petition (WPA 13851 of 2026) seeking payment of statutory terminal dues – provident fund (PF), gratuity, and leave encashment.
  • Background: The petitioner retired on attaining the normal age of superannuation on 28 February 2023. He alleges that only 20% of his PF dues were paid and that his gratuity and leave salary have not been paid to date. He prays for the remaining 80% of PF, full gratuity, and leave salary.
  • Court’s Observations: The court noted that receipt of PF, gratuity, and leave encashment are statutory dues of a retired employee and must be disbursed immediately upon retirement. No delay is permissible. The court relied on an earlier order dated 15 January 2026 and on order No.28860 of 2025.
  • Directions Issued:

1. The Managing Director of CSTC is directed to release the balance amount of PF dues, gratuity, and leave salary to the petitioner.

2. The amount shall attract simple interest at 6% per annum calculated from the date of retirement (28‑Feb‑2023) up to the date of actual payment.

3. Payment must be made within twelve weeks from the date of communication of this order.

4. If payment is not made within the twelve‑week period, the petitioner shall be entitled to an additional 2% interest, i.e., a total of 8% per annum, calculated from the retirement date to the date of actual payment.

5. In the event CSTC lacks sufficient funds, the State authorities are directed to disburse the concerned amount in favour of the petitioner.

6. The writ petition is disposed of.

Final Outcome

  • The petition is dismissed after the court’s directions are issued. CSTC must pay the outstanding PF, gratuity, and leave encashment with the stipulated interest, and the State must ensure funds are available if CSTC cannot meet the payment.

Topics: PF Dues, Retirement Benefits, Interest on Delayed Payments