BANK OF BARODA Vs. ASIM KUMAR BASU

JUDGEMENT

(1.) Service of the writ petitioner/respondent no.1 herein was terminated by his employer, the appellant/Bank herein, after holding a disciplinary proceeding against him on 31st August, 1993. Long thereafter on or about 7th May, 2007, he applied for release of his provident fund dues together with interest. Since his service was terminated followed by a disciplinary proceeding, he was not entitled to employer's share of contribution towards provident fund. He was only entitled to get back his share of contribution. The appellant/employer has paid him the employee's share of contribution on 14th September, 2007. Since interest was not paid on such employee's share of contribution, the writ petitioner/respondent no.1 felt aggrieved. Accordingly, he filed a writ petition being W.P. 13186(W) of 2012. The said writ petition was allowed by the Learned Single Judge of this Court on 19th February, 2014.

(2.) The employer/Bank was directed to pay interest @8% per annum from the date of cessation of his membership till the date of actual payment thereof. Such payment was directed to be made by the Bank within a period of four weeks from the date of communication of the said order.

(3.) While disposing of the said writ petition, the learned Trial Judge held that since the Bank has utilised the employee's share of contribution and has earned interest on it, it cannot now turn down the writ petitioner's request for payment of interest as denial of payment of interest would be against the principles for which the Scheme was enunciated.