CSTC Ordered to Release Full PF Dues

Authority: High Court of West Bengal

Order Date: 7 July 2026

Parties: Rabindra Nath Basak (petitioner, retired employee of Calcutta State Transport Corporation) vs State of West Bengal & others.
The petitioner retired on 31 January 2025 and received only 50% of his provident fund dues; gratuity and leave encashment were paid belatedly.
He sought interest on delayed payments of terminal dues.

The Court referenced its earlier order in WPA No.28860 of 2025, emphasizing employer’s duty to disburse statutory dues promptly.
The Managing Director of CSTC is directed to release the balance provident fund amount to the petitioner.
Simple interest at 6% per annum is to be calculated from the retirement date to the actual payment date for the pending PF amount.
The petitioner is also entitled to 6% simple interest on the delayed gratuity and leave encashment amounts, calculated from the retirement date.
All amounts must be cleared within twelve weeks from the date of communication of this order.
If payment is not made within the stipulated period, the interest rate increases to 8% per annum (6% + 2%) on the due amount from the retirement date to actual payment.
The State authorities shall provide any necessary funds to CSTC for extending the benefits, including provident fund and dearness allowance, if required.
The writ petition is disposed of.

CSTC must pay the remaining provident fund dues with 6% interest, and the petitioner must receive interest on gratuity and leave encashment, all within twelve weeks; failure to do so triggers 8% interest. The petition is dismissed.

Topics: Employee Benefits, Statutory Dues