Durgapur Projects Ltd Ordered 6% Interest

Authority: Hon'ble Court (Justice Reetobroto Kumar Mitra)

Order Date: 22 September 2026

Petitioner: Sambhu Nath Das, a retired employee of Durgapur Projects Limited, filed a writ petition seeking interest on delayed retirement dues, specifically gratuity and leave encashment.
Respondent: Durgapur Projects Limited (DPL), represented by Advocate Sujit Sankar Koley, submitted that the company's financial condition is extremely unstable, it cannot pay regular salaries, and must sell land to meet employee dues, making it difficult to pay interest on the delayed retirement amounts.
The court reiterated settled law that retirement dues are a vested right and must be paid immediately upon retirement; consequently, interest is payable on any delayed payment.

Respondent Nos. 2 and 4 (DPL) are directed to calculate and disburse interest at 6% per annum from the date the retirement dues accrued until actual payment.
The calculated interest must be paid within six months from the date of communication of this order.
If the interest amount is not paid within the stipulated six‑month period, an additional interest of 2% per annum (making a total of 8% per annum) shall be payable to the petitioner.
The writ‑petition is disposed of with these directions.
An urgent photostat certified copy of this order may be supplied to the parties upon compliance with all requisite formalities.

Durgapur Projects Limited is mandated to pay interest on the petitioner’s delayed retirement dues at 6% per annum, with a penalty interest of an extra 2% per annum for any further delay, within six months of the order.

Topics: Employee Retirement Dues, Court Order, Interest on Delayed Payments