Disposed¶18

Sandip Das v. the State of West Bengal and Ors.

Calcutta HC23 Aug 2024WPO/560/2024

Case brief

AI extract

What is this about?

WPO 560/2024, High Court at Calcutta (Original Side), decided 23.08.2024, Arindam Mukherjee J: interest on delayed provident-fund payment; CTC/WBTC retiree superannuated 31.10.2023; PF of Rs.26,87,025/- paid 09.05.2024 after over six months' delay; 6% interest awarded for 01.11.2023-09.05.2024, payable within four months, else 8.6%; liability of respondents joint and several; responsibility for delay left unexamined; writ petition disposed.

What did the court decide?

Respondents, jointly and severally, to pay 6% interest on Rs. 26,87,025/- for the period 1 November 2023 to 9 May 2024, within four months from the date of the order; failing payment within that period, interest at 8.6% (present provident-fund rate). Writ petition disposed of. ¶18

Sandip Das Vs the State of West Bengal and Ors. — Calcutta HC (2024) — LawSathi Research

What the court decided

AI extract

Outcome

¶18

Issue for consideration

Whether the petitioner is entitled to interest on the delayed payment of his provident fund of Rs. 26,87,025/-, paid on 9 May 2024 over six months after superannuation on 31 October 2023.

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Court's answer

As the PF amount was received with accrued interest only up to 31 October 2023, the petitioner is entitled to receive interest for the period from 1 November 2023 to 9 May 2024.

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Ratio / Principle

The petitioner is entitled to interest on Rs. 26,87,025/- for the delay because the respondents derived benefit out of the money during the period it remained unpaid, while the petitioner was deprived of the benefit of money that was not paid when it fell due.

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Key takeaways

Without deciding who was responsible for the delay or to what extent, the respondents are directed, jointly and severally, to pay 6% interest on the entire sum of Rs. 26,87,025/- for the period between 1 November 2023 and 9 May 2024, the interest to be paid within four months.ratio¶17
If the interest on account of delayed payment of provident fund is not paid to the petitioner within four months, the applicable rate will be 8.6%, being the present rate of interest in respect of provident fund.ratio¶17

Detailed headnote1 paragraphs

Calcutta High Court (Arindam Mukherjee, J., 23 August 2024; WPO 560 of 2024) disposes of a writ petition by Sandip Das, who superannuated from Calcutta Tramways Company (1978) Ltd. (now West Bengal Transport Corporation Ltd.) on 31 October 2023 but was paid his provident fund of Rs. 26,87,025/- only on 9 May 2024 — a delay of over six months. Holding that the respondents derived the benefit of the withheld money while the petitioner was deprived of it, the Court awards him interest for 1 November 2023 to 9 May 2024 (the PF having carried accrued interest only up to 31 October 2023), expressly without adjudicating who was responsible for the delay or to what extent: respondents, jointly and severally, to pay 6% interest on the entire sum within four months, failing which the rate rises to 8.6%, the prevailing provident-fund rate. Writ petition disposed of accordingly.

OD-3

ORDER SHEET

WPO 560 of 2024

IN THE HIGH COURT AT CALCUTTA CONSTITUTIONAL WRIT JURISDICTION ORIGINAL SIDE

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SANDIP DAS

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VS.

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THE STATE OF WEST BENGAL & ORS.

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BEFORE:

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The Hon’ble JUSTICE ARINDAM MUKHERJEE Date: 23^rd August, 2024.

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Mr. Debdutta Basu, Advocate for the petitioner.

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Ms. Deblina Chattaraj, Advocate for WBTC Ltd. Mr. Naba Kr. Das, Ms. Rajyashree Mukherjee, Advocates for the State.

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The Court : The petitioner retired from the service of Calcutta Tramways Company (1978) Ltd. (in short “CTC”) now known as West Bengal Transport Corporation Limited (in short “WBTC”) on 31^st October, 2023 on attaining the age of superannuation. The petitioner has been paid the provident fund (PF) amount of Rs.26,87,025/- on 9^th May, 2024 after a delay of over six months. The petitioner has sought for interest on delayed payment of PF amount.

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The petitioner has received the PF amount with accrued interest uptil 31^st October, 2023 and as such is entitled to receive interest from 1^st November, 2023 to 9^th May, 2024.

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In the aforesaid facts and circumstances, the petitioner is entitled to receive interest on the said sum of Rs.26,87,025/- for delay in paying the

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same as the respondents have derived benefit out of such money while the petitioner was deprived of the benefit on the money having not been paid immediately upon the same fell due. The petitioner says that the said sum of Rs.26,87,025/- was paid on 9^th May, 2024 and there is no dispute raised about the said date of payment.

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Without going into the dispute as who was responsible for the delay and to what extent, I direct the respondents jointly and severally to pay 6% interest on the entire sum of Rs.26,87,025/- for the period between 1^st November, 2023 till 9^th May, 2024. The entire interest on account of delayed payment of Provident Fund shall be paid to the petitioner within a period of four months from date, failing which the interest will be 8.6% being the present rate of interest in respect of Provident Fund.

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Nothing further remains to be adjudicated in this matter. Accordingly, the writ petition stands disposed of.

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(ARINDAM MUKHERJEE, J.)

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Sandip Das v. the State of West Bengal and Ors.

Case brief

What is this about?

What did the court decide?

Sandip Das v. the State of West Bengal and Ors.

Case brief

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