Allowed

Nandalal Daira v. the Durgapur Project Ltd. and Ors.

Calcutta HC5 Jul 2022WPA/11859/2022

Case brief

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What is this about?

In this writ petition, Nandalal Daira, a retired employee of Durgapur Projects Limited, approached the Court for interest due to delayed payment of gratuity and leave salary. The Court relied on a recent judgment (Kajal Pal v. The Durgapur Projects Ltd. & Ors.) and directed the respondent to pay interest at 6% per annum or exercise statutory rate.

What did the court decide?

Respondent directed to pay interest at 6% per annum on Rs. 12,27,576/- from 1st March, 2018 to 6th July, 2019.

Nandalal Daira Vs the Durgapur Project Ltd. and Ors. — Service and Employment | Calcutta HC (2022)

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15 05.07.2022 Ct. No.23 pg.

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IN THE HIGH COURT AT CALCUTTA CONSTITUTIONAL WRIT JURISDICTION APPELLATE SIDE

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WPA 11859 of 2022

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Nandalal Daira Vs.

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The Durgapur Projects Limited & Ors.

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Mr. Siddhartha Sarkar

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… For the petitioner

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Mr. Sujit Sankar Koley … For the respondents

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The petitioner was an employee in Durgapur Projects Limited (in short “DPL”), the respondent no.1. The petitioner retired from service on 28^th February, 2018. The petitioner on his retirement was entitled to payment of gratuity and an amount on account of leave salary aggregating to Rs.12,27,576/-. This figure is not in dispute. The petitioner was paid this amount on 6^th July, 2019. The date of payment is also not in dispute. The petitioner says that there has been a delay of about 16 months in making of the said sum of Rs.12,27,576/- on account of gratuity and leave salary. The petitioner, therefor, is entitled to interest for delayed payment of gratuity as per the provisions of Section 7(3A) of the Payment of Gratuity Act, 1972 (hereinafter referred to as the “said Act”) and interest on the same rate on leave salary since the same is part of the retiral benefits.

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The issues involved in the instant writ petition are squarely covered by a recent judgment and order of this Court dated 9^th August, 2021 passed in WPA 11485 of 2021 (Kajal Pal v. The Durgapur Projects Ltd. & Ors.). The consensus between the parties as was in case of Kajal Pal (supra) is also there in the instant case.

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As such, this writ petition is disposed of on the similar lines as in Kajal Pal (supra), which are as follows:-

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The respondent no.1 is directed to pay interest to the writ petitioner at the rate of 6 per cent per annum on Rs.12,27,576/- being the amount on account of gratuity and leave salary calculated on and from 1^st March, 2018 till 6^th July, 2019 within a period of six months from the date of communication of a photostat certified copy of this order and in default statutory rate of 10 per cent as in case of gratuity will be attracted on the entire amount from 1^st March, 2018 till 6^th July, 2019.

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Nothing further remains to be adjudicated in this writ petition.

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Since I have not called for any affidavits, allegations made in the writ petition are deemed to have not been admitted by the respondents.

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Urgent photostat certified copy of this order, if applied for, be given to the parties, upon compliance of necessary formalities.

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(Arindam Mukherjee, J.)

Nandalal Daira v. the Durgapur Project Ltd. and Ors.

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Nandalal Daira v. the Durgapur Project Ltd. and Ors.

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