The Calcutta High Court has held that superannuated employees are entitled to interest at 6% per annum from the date of retirement to the date of actual payment for delayed provident fund disbursement by state authorities, with an increased penal rate for further default. This affirms the consistent principle of compensatory interest in service jurisprudence within West Bengal and serves as binding precedent for subordinate courts.
Summary
| Category | Data |
|---|---|
| Case Name | WPA/22290/2025 of JITEN HELA Vs STATE OF WEST BENGAL AND ORS. |
| CNR | WBCHCA0444762025 |
| Date of Registration | 16-09-2025 |
| Decision Date | 24-10-2025 |
| Disposal Nature | DISPOSED |
| Judgment Author | HON’BLE JUSTICE ANIRUDDHA ROY |
| Court | Calcutta High Court |
| Bench | Single Judge (Justice Aniruddha Roy) |
| Precedent Value | Binding on all subordinate courts in West Bengal |
| Type of Law | Service Law/Terminal Benefits |
| Questions of Law | Whether a retired employee is entitled to interest on delayed payment of provident fund by State authorities. |
| Ratio Decidendi |
The Court held that a retired employee is entitled to interest at 6% per annum on delayed payment of provident fund from the date following superannuation to the date of actual payment. If the payment is not made within the directed time, a penal rate of 9% per annum applies. This ensures compensation for delayed disbursement of terminal benefits by a public employer. |
| Facts as Summarised by the Court | The petitioner superannuated from WBTCL on June 30, 2024, and received provident fund benefits on May 13, 2025. The claim was for interest on the delayed payment of terminal benefits. The State did not appear in the proceedings. |
Practical Impact
| Category | Impact |
|---|---|
| Binding On | All subordinate courts in West Bengal |
| Persuasive For | Similar High Courts and service tribunals outside West Bengal |
| Follows | Established principle of compensatory interest in delayed terminal benefits payment |
What’s New / What Lawyers Should Note
- The Calcutta High Court expressly directs a 6% interest per annum for delayed payment of provident fund benefits to superannuated employees, calculated from the day after retirement up to the actual date of payment.
- In case of non-payment within the stipulated period post-order, penal interest at 9% per annum will apply.
- Lawyers should rely on this case as clear authority for employee entitlement to compensatory interest in cases of delayed payment by State authorities in West Bengal.
Summary of Legal Reasoning
- The Court observed the undisputed fact of delay in disbursement of provident fund benefits post-superannuation.
- The judgment applied the principle that employees should be compensated by way of interest for loss of money lawfully due upon retirement.
- The Court fixed the interest rate at 6% per annum for the period of delay and provided for an increased penal rate of 9% per annum in case of default of its order.
- The reasoning reinforces the duty of the State and public employers to ensure timely settlement of terminal benefits, failing which reasonable interest is justified.
Arguments by the Parties
Petitioner
Sought interest for the delay in payment of terminal benefits (provident fund) after superannuation.
Respondent (WBTCL)
Specific arguments not recorded in the judgment.
State
None appeared for the State; thus, no submissions recorded.
Factual Background
The petitioner retired from West Bengal Transport Corporation Limited (WBTCL) on June 30, 2024. His provident fund benefits, totaling Rs. 10,35,678/-, were received only on May 13, 2025. The petitioner sought interest for the period of delay between superannuation and actual payment of terminal benefits.
Statutory Analysis
The judgment turned on the compensatory principle for delayed payment of statutory dues and did not elaborate on the interpretation of a specific statutory provision. The order directed payment of interest at specified rates; statutory entitlement is treated as inherent in service law obligations.
Alert Indicators
- ✔ Precedent Followed – The judgment affirms and applies settled principles regarding interest on delayed service benefits.