Authority: Court (presiding judge: Reetobroto Kumar Mitra)
Order Date: Not stated
Case Overview
- Petitioner: Ahibhusan Chowdhury, a retired employee of The Durgapur Projects Limited (DLP).
- Respondents: The Durgapur Projects Limited and others.
- Petition filed under WPA 25558 of 2026 seeking interest on delayed payment of retiral dues, which include gratuity and leave encashment.
- The petitioner’s affidavit of service was taken on record.
- The court reiterated settled law that retiral dues are a statutory right payable immediately upon retirement, not a discretionary bounty.
- DLP, through counsel Mr. Sujit Sankar Koley, contended severe financial instability, inability to pay regular salaries, and the need to sell land to meet employee dues, arguing that paying interest would be difficult.
Court Reasoning & Directions
- The court held that despite the company’s financial condition, the legal obligation to pay interest on delayed retiral dues stands.
- Directed DLP (respondent nos. 2 and 4) to calculate interest at 6% per annum from the date the dues accrued until actual payment.
- The calculated interest must be disbursed within six months of the order’s communication.
- If the amount is not paid within this timeline, 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 requisite formalities.
Final Outcome
- DLP is legally bound to pay the petitioner interest at 6% per annum on the delayed retiral dues, with a six‑month deadline for payment.
- Failure to meet the deadline triggers an extra 2% per annum interest, effectively increasing the rate to 8% per annum.
- The order resolves the petitioner’s claim for interest and closes the writ petition.
Topics: Labor Law, Retiral Dues