LAWS(CAL)-2012-12-76

SAYEEDUL ISLAM MIR Vs. STATE OF WEST BENGAL

Decided On December 13, 2012
Sayeedul Islam Mir Appellant
V/S
STATE OF WEST BENGAL Respondents

JUDGEMENT

(1.) An affidavit-of-service is filed; let the same be kept on record. In spite of service, no one appears on behalf of the respondents.

(2.) Upon noticing the said judgment, it appears that one of the points, which was taken, was whether the interest could be awarded for delayed payment of the retiral benefit after a lapse of considerable period of time. In such perspective, it was held that:--

(3.) Let me explain as to how non-payment of interest amounts to a continuing wrong. It has now been settled universally that payment of retiral dues is not a bounty. The scheme for payment of such retiral dues was introduced by the State Government by the Office Memorandum dated 26th May, 1998. Under the said scheme the State Government is required to pay the retiral dues such as death-cum-retiring gratuity, commuted value of pension etc., on the day following the date of his retirement. If such payment is not made on the said date, then the State Government acquires a liability to pay interest on delayed payment of such retiral dues, simultaneously corresponding right to claim interest on delayed payment of retiral dues is accrued in favour of the retired person as such right is recognised in the Part III of the Constitution. Thus, whenever such retiral dues is paid to a retired person beyond the due date, the State Government is required to pay interest till the date of payment of such retiral dues, so that the interest which he could have earned by way of depositing his retiral dues in any Nationalized Bank or any financial institutions from the date since when it became due and payable to him upto the date of payment thereof, can be recovered by him from the employer. This liability to pay interest by the State, in my view, continues till the date of actual payment of the retiral dues but in case interest is not paid along with the retiral dues, liability to pay interest continues till the date of payment of interest as the interest which was accumulated on the retiral dues upto the date of payment of such retiral dues, also carries interest day to day until such interest is paid. Thus, this Court is of the view that non-payment of interest on delayed payment of retiral dues is a continuing wrong causing continuous injury to the petitioner.