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Subhra Kanti Hazra v. the State of West Bengal and Ors.

Calcutta HC13 Jul 2022WPO/2331/2022

Case brief

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What is this about?

Petitioner, a retired employee of WBTC, moved under Article 226 claiming interest on delayed payment of retiral benefits. Relying on Supreme Court precedent, the court directed the respondent to pay 6% interest on the undisputed amount with a stipulation on default.

What did the court decide?

Respondent no. 2 directed to pay 6% interest per annum on Rs.85,11,063.24 from 1st February 2022 to 5th April 2022 within two months; statutory rate of 10% applicable in default.

Subhra Kanti Hazra Vs the State of West… — Pension and Retirement Benefits | Calcutta HC (2022)

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WPO 2331 of 2022 IN THE HIGH COURT AT CALCUTTA Constitutional Writ Jurisdiction ORIGINAL SIDE

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SUBHRA KANTI HAZRA VS

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THE STATE OF WEST BENGAL AND ORS.

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BEFORE:

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The Hon’ble JUSTICE ARINDAM MUKHERJEE Date: 13^th July, 2022

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Appearance: Mr. Debdutta Basu, Adv. …for the petitioner Mr. Niladri Bhattacharjee, Adv. Ms. Deblina Chattaraj, Adv. Mr. Rohan Chatterjee, Adv. …for the WBTC Ltd. Mr. Santanu Kr. Mitra, Sr. Govt. Adv. Mr. Mirza Kamruddin, Adv. …for the State

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The Court : Affidavit of service filed in Court today is taken on record.

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The petitioner is a retired employee of Calcutta Tramways Company (1978) Ltd. (in short, “CTC”) now known as West Bengal Transport Corporation (in short, “WBTC”). The petitioner retired from the services on 31^st January, 2022 and claims interest on delayed payment of his retiral benefits as the same was paid only on 5^th and 6^th April, 2022.

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The petitioner on his retirement was entitled to payment on account of provident fund, gratuity and leave salary an amount of Rs.85,11,063.24. This figure is not in dispute. The petitioner was paid this amount on 5^th and 6^th April, 2022. The date of payment is also not in dispute. The petitioner says that there has been a delay of about three

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months in making of the sum of Rs. 85,11,063.24 on account of his retiral benefits. The petitioner, therefore, claims to be entitled to interest for delayed payment of his retiral benefits.

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The issue relating to claim of interest for delayed payment of retiral benefits as made in the instant writ petition is squarely covered by a recent judgment and order of the Hon’ble Supreme Court reported in (2022) 4 SCC 627 [Dr. A. Selvaraj v. CBM College & Ors.] which provides for payment of interest on retiral dues if paid belatedly for no fault of the employee. The same is the case over here.

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As such, this writ petition is disposed of with the following directions :

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The respondent no.2 is directed to pay interest to the writ petitioner at the rate of 6% per annum on Rs.85,11,063.24 being the amount on account of retiral benefits calculated on and from 1^st February, 2022 till 5^th April, 2022 within a period of two months from the date of communication of a photostat certified copy of this order and in default statutory rate of 10% as in case of gratuity will be attracted on Rs. 85,11,063.24 from 1^st February, 2022 till 5^th April, 2022.

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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.)

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Subhra Kanti Hazra v. the State of West Bengal and Ors.

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Subhra Kanti Hazra v. the State of West Bengal and Ors.

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