The Calcutta High Court, in exercise of its writ jurisdiction, has reaffirmed the legal entitlement of a retired employee to interest on delayed payment of provident fund by a government company, specifying the applicable interest rates and the consequences of further delay. This judgment upholds existing legal principles and serves as binding precedent within West Bengal on the issue of interest for delayed terminal benefits in public sector employment.
Summary
| Category | Data |
|---|---|
| Case Name | WPA/22287/2025 of MD ASLAM KHAN Vs STATE OF WEST BENGAL AND ORS. |
| CNR | WBCHCA0444142025 |
| 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 (HON’BLE JUSTICE ANIRUDDHA ROY) |
| Precedent Value | Binding authority within the jurisdiction of Calcutta High Court |
| Type of Law | Service Law; Public Sector Terminal Benefits |
| Questions of Law | Whether a retired public sector employee is entitled to interest on delayed payment of provident fund/terminal benefits. |
| Ratio Decidendi |
The petitioner, a retired employee, received delayed payment of provident fund by the employer (WBTCL). The High Court held the employee is entitled to interest on the delayed period, quantified at 6% per annum, and further specified an increased rate of 9% per annum in the event of non-compliance. The legal right to recover interest for delayed terminal benefits is reaffirmed, and the writ jurisdiction is found appropriate for directing such relief in service matters involving state or public sector undertakings. The employer was granted one month to effect payment of interest. |
| Facts as Summarised by the Court |
The petitioner superannuated on March 31, 2024. He received provident fund benefits (Rs. 27,27,016) on March 19, 2025. The claim before the Court was only for interest on this delayed payment by WBTCL. The State did not appear in the matter. The order was passed on an affidavit of service. |
Practical Impact
| Category | Impact |
|---|---|
| Binding On | All subordinate courts and authorities within the jurisdiction of the Calcutta High Court |
| Persuasive For | Other High Courts in India; may be cited before the Supreme Court on similar questions |
What’s New / What Lawyers Should Note
- The Calcutta High Court reiterates that retired employees of government companies are entitled to interest on delayed payment of provident fund, even when only the interest is claimed in writ proceedings.
- Specifies 6% per annum as the applicable interest rate for the period of delay, increasing to 9% per annum in case of further default.
- The Court enforces accountability against public authorities and government companies regarding timely disbursement of retiral benefits.
- Lawyers may cite this decision to expedite and enforce interest claims on delayed terminal/retiral benefits from public sector employers via writ petitions.
Summary of Legal Reasoning
- The Court noted the petitioner had retired on March 31, 2024, but the provident fund payment was received only on March 19, 2025, causing an unjustified delay.
- In exercise of writ jurisdiction, the Court found it just and proper to award simple interest at 6% per annum for the period of delay (April 1, 2024 to March 19, 2025).
- To further incentivize prompt compliance, the Court directed that if the amount was not paid within one month, the interest rate would increase to 9% per annum.
- The Court acted on the basis of non-appearance by the State, but on the affidavit of service and representations by the respondents (WBTCL).
- The order was limited to granting the undisputed quantum of interest; no costs were awarded.
Arguments by the Parties
Petitioner
- The petitioner had superannuated and received provident fund benefits only after significant delay.
- Sought interest on the delayed period for justice and adequate compensation.
Respondent (WBTCL)
- Arguments not set out in the text of the judgment; presence of WBTCL’s counsel is noted.
State
- No appearance or arguments before the court.
Factual Background
The petitioner retired from WBTCL on March 31, 2024. Though entitled to his provident fund on retirement, he only received the amount of Rs. 27,27,016 on March 19, 2025. He approached the Calcutta High Court seeking payment of interest for this period of delay. The State did not appear despite service; WBTCL was represented.
Statutory Analysis
The judgment does not explicitly cite or interpret any particular statutory provision but grants relief on the established legal principle that interest on delayed terminal benefits is permissible, especially in the context of public employment. The court fixes specific rates of interest for the default period and in case of further delay, consistent with judicial practice.
Dissenting / Concurring Opinion Summary
No dissenting or concurring opinions are present in this single-judge judgment.
Procedural Innovations
- The court directed all parties to act on a server copy of the order downloaded from the official website, facilitating prompt compliance without waiting for certified copies.
- Relief was granted solely on the basis of affidavit of service when the State did not appear.
Alert Indicators
- ✔ Precedent Followed – The decision reaffirms settled law on interest for delayed payment of terminal benefits in public sector employment (no change or departure from established position).