PRADIP KUMAR DUTTA Vs. DURGAPUR PROJECTS LIMITED

JUDGEMENT

(1.) The writ petitioner is a retired employee of the Durgapur Projects Limited. He claims interest on delayed payment of gratuity and leave encashment. He relies upon a decision of a Division Bench of this Court in Krishna Prosad Chatterjee Vs. The Durgapur Projects Limited and others dated 11.03.2020 passed in MAT 108 of 2020. He submits that the Division Bench had ordered the interest on delayed payment of gratuity to be paid @ 7 per cent per annum.

(2.) In so far as leave encashment is concerned, the Division Bench considered the precarious financial condition of the Durgapur Projects Limited and has ordered that if leave salary is released to the petitioner within six weeks, the same will not attract any interest. It was further found in the said case that leave salary was already paid to the petitioner therein. Hence, no further interest was awarded.

(3.) Counsel for the petitioner, Mr. Ayan Banerjee relies upon an unreported decision of the Hon'ble Supreme Court in the case of The State of Andhra Pradesh and Another - Vs. - Smt. Dinavahi Lakshmi Kameswari dated 8th February, 2021 passed in Civil Appeal No. 399 of 2021 where interest at the rate of 6 per cent and all terminal benefits was ordered. The Supreme Court reduced 12 per cent interest awarded by the Andhra Pradesh High Court, to 6%, given the poor financial condition of the State. Further reliance is also placed at paragraphs 13 to 17 of a decision of the Hon'ble Supreme Court in the case of S.K. Dua - Vs. - State of Haryana and Another reported in (2008) 3 Supreme Court Cases 44. It was held in the said decision that interest is always payable on delayed payment of terminal benefits.