Authority: Hon'ble Judge Reetobroto Kumar Mitra, J.
Order Date: 22 September 2026
Case Overview
- Petitioner: Probir Majumder, a retired employee of The Durgapur Projects Limited (DPL).
- Respondents: The Durgapur Projects Limited and other associated parties.
- Nature of proceeding: Writ petition seeking interest on delayed payment of retirement dues (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.
- Legal principle cited: An employee is entitled to receive retirement dues immediately upon retirement; such dues are a legal right, not a bounty.
- DPL’s submission: The company’s financial condition is extremely unstable; it is unable to pay regular salaries and must sell land to meet employee dues, making payment of interest difficult.
Final Outcome
- The court directed respondents No. 2 and 4 (the company) to calculate and disburse interest to the petitioner at 6% per annum from the date the dues accrued until actual payment.
- The calculated interest must be paid within six months of the order’s communication.
- If the amount is not paid within this 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 parties upon compliance with formalities.
Topics: Employee Retirement Dues, Court-Ordered Interest