Yes. The Calcutta High Court directs payment of interest at 6% per annum from the date of retirement until actual payment within 12 weeks, rising to 9% thereafter—clarifying timelines and rates for state authorities.
Summary
| Category | Data |
|---|---|
| Case Name | WPA/13903/2025 of SK ANOWAR ALI AND ORS Vs STATE OF WEST BENGAL AND ORS |
| CNR | WBCHCA0280882025 |
| Decision Date | 18-08-2025 |
| Disposal Nature | DISPOSED |
| Judgment Author | HON’BLE JUSTICE ANIRUDDHA ROY |
| Court | Calcutta High Court |
| Bench | Single Judge |
| Questions of Law | Are retired NVF employees entitled to interest on delayed ex-gratia payments? |
| Ratio Decidendi |
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| Facts as Summarised by the Court |
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What’s New / What Lawyers Should Note
- Retired NVF personnel are entitled to interest at 6% p.a. for delayed ex-gratia payments, calculated from the day after retirement until actual disbursement.
- If the state fails to comply within 12 weeks of the order’s communication, the rate increases to 9% p.a. automatically.
- Absence of affidavits by respondents leads to all petition allegations being deemed unchallenged.
- No order as to costs despite default by the state—underscores emphasis on merits over procedural defaults.
Summary of Legal Reasoning
- The court recognized undue delay in payment of ex-gratia as a ground for awarding interest.
- Applied equitable principle: compensation for delayed disbursement demands a fair rate of interest.
- Specified 6% p.a. as reasonable until compliance, escalating to 9% p.a. if the state does not act within 12 weeks.
- Treated non-appearance and failure to file affidavits as admission of petitioners’ claims, streamlining disposal.
Arguments by the Parties
Petitioner
- Retired NVF employees suffered undue delay in receipt of ex-gratia.
- Entitled to interest from date of retirement until actual receipt of funds.
Respondent
- No appearance and no affidavits filed; no contest to petitioners’ claims.
Factual Background
Petitioners are former members of the National Volunteer Force whose ex-gratia payments after retirement were made with considerable delay. They filed WPA/13903/2025 seeking interest on those delayed payments. The state authorities failed to appear or contest. The High Court directed payment of interest at 6% p.a. from the date following retirement, with an enhanced rate of 9% p.a. if the order is not complied with within 12 weeks, and disposed of the petition without costs.