Authority: Hon'ble Judge Reetobroto Kumar Mitra, J.
Order Date: 22 September 2026
Case Overview
- Petitioner: Kalipada Mal, a retired employee of Durgapur Projects Limited (DLP).
- Respondents: Durgapur Projects Limited and others.
- The petitioner’s retirement dues—including gratuity and leave encashment—were released after a delay, contrary to settled law that mandates immediate payment upon retirement.
- The petitioner seeks statutory interest on the delayed payment.
- DLP contended that its financial condition is extremely unstable, unable to pay regular salaries, and must sell land to meet employee dues, arguing difficulty in paying interest.
Final Outcome
- The court directed DLP (respondent nos. 2 and 4) to calculate and disburse interest at 6% per annum from the date of accrual until actual payment.
- The calculated interest must be paid within six months of the order’s communication.
- If payment is not made 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 upon compliance with requisite formalities.
Topics: Retirement Dues, Interest Payment, Labor Law