Authority: High Court (Writ Petition Application No. 25555 of 2026, Court No. 18)
Order Date: 22 September 2026
Case Overview
- Parties: Petitioner – Tapan Kumar Pal (retired employee of The Durgapur Projects Limited); Respondents – The Durgapur Projects Limited and others.
- Nature of Proceeding: Writ petition seeking interest on delayed payment of retirement dues, including gratuity and leave encashment.
- Background: The petitioner’s retirement dues were released after a delay. He claims entitlement to interest for the period of delay. The respondent company contended that its financial condition is extremely unstable, lacking capacity to pay regular salaries and having to sell land to meet employee dues, thereby arguing difficulty in paying interest.
- Legal Position: The court reiterated settled law that an employee is entitled to receive retirement dues immediately upon retirement and that such dues are a legal right, not a bounty. Consequently, the respondent is bound to pay interest on delayed dues.
- Court Observations: Despite the company’s claim of financial instability, the court held that the legal obligation to pay interest cannot be waived.
Final Outcome
- The court directed Respondent Nos. 2 and 4 (The Durgapur Projects Limited) to calculate and disburse interest to the petitioner at 6% per annum from the date of accrual until actual payment.
- The calculated interest must be paid within six months of the communication of this order.
- If the amount is not paid within the stipulated six‑month period, an additional interest of 2% per annum (total 8% per annum) shall be payable to the petitioner.
- The writ petition is hereby disposed of.
- An urgent photostat certified copy of the order may be supplied to the parties upon compliance with requisite formalities.
Topics: Labor Law, Interest on Delayed Dues