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[Cites 2, Cited by 56]

Calcutta High Court

Swapan Kumar Das vs The State Of West Bengal And Ors on 20 July, 2022

Author: Arindam Mukherjee

Bench: Arindam Mukherjee

                          WPO 2279 of 2022
                  IN THE HIGH COURT AT CALCUTTA
                    Constitutional Writ Jurisdiction
                            ORIGINAL SIDE



                       SWAPAN KUMAR DAS
                              VS
               THE STATE OF WEST BENGAL AND ORS.



BEFORE:
The Hon'ble JUSTICE ARINDAM MUKHERJEE
Date: 20th July, 2022

                                                                       Appearance:
                                                           Mr. Debdutta Basu, Adv.
                                                                 ...for the petitioner
                               Mr. Niladri Bhattacharjee, Ms. Deblina Chattaraj, Mr.
                                        Rohan Chatterjee, Advocates for WBTC Ltd.
                                    Mr. Arjun Ray, Ms. Saheli Mukherjee, Advocates
                                                                      ...for the State




    The Court : The petitioner retired from the services of Calcutta

 Tramways Company (1978) Ltd. (in short, "CTC") now known as West

 Bengal Transport Corporation (in short, "WBTC") with effect from 31 st

 July, 2019 upon attaining the age of superannuation. The petitioner was

 paid his retiral benefits which included a sum of Rs.11,04,696/- towards

 Provident Fund (in short PF), Rs.5,90,000/- on account of gratuity and a

 sum of Rs.5,39,595/- on account of leave salary only on 3 rd and 4th

 December, 2019. The petitioner is claiming interest on this sum for

 delayed payment thereof. The petitioner was paid an additional sum of

 Rs.4,64,350/- towards gratuity on 3 rd March, 2021 in view of the gratuity

 amount having increased due to increase in salary arising out of revision
                                       2


of pay.    The gratuity amount was computed initially on the basis of

unrevised salary and the additional amount was the difference in

computation on the unrevised salary and that on the basis of revised

salary.

    The revision of pay and allowance was made applicable by virtue of a

notification   issued   by   the   Government   of   West   Bengal,   Finance

Department, Audit Branch on 25 th September, 2019. The revision of pay

and allowance which resulted in increase in the gratuity amount as

aforesaid, therefore, came into effect only on 25 th September, 2019 i.e.

subsequent to the petitioner's retirement which took place on 31 st July,

2019. The notification had a retrospective effect on the salary of the

petitioner which he was receiving prior to his retirement. The effect of

such enhancement has been duly given to the petitioner by paying the

additional amount. However, the petitioner cannot be granted any

interest on the additional sum towards gratuity as there was no delay

attributable to CTC between 1 st August, 2019 and 24th September, 2019,

as the notification was not there. The petitioner, therefore, is entitled to

interest on the additional sum on account of gratuity from 25 th

September, 2019 i.e. the date on which the notification came into effect

till actual payment i.e. 3rd March, 2021. The petitioner, however, is

entitled to interest on the aforesaid sum of Rs.22,34,225/- from 1 st

August, 2019 till 2nd December, 2019 for delay in making payment

thereof.

   The issue of payment of interest for delay in paying the retiral benefits

have been considered by the Hon'ble Supreme Court in a recent judgment
                                     3


reported in (2022) 4 SCC 627 (Dr. A. Selvaraj v. CBM College & Ors.). In

the instant case, there is no fault on the part of the petitioner for the

delay in paying the retiral benefits as it was the obligation of the employer

to process the payment of retiral benefits and pay the same within one

month from the date of the petitioner's retirement. Since the payment was

not made within one month, the interest will date back to the date

immediately succeeding the date of the petitioner's retirement.

   In the aforesaid facts and circumstances, the respondents are

directed to pay interest to the petitioner at the rate of 6% per annum of Rs.22,34,225/- from 1st August, 2019 till 2nd December, 2019. The respondents shall also pay interest on the sum of Rs.4,64,350/- at the rate of 6% per annum from 25 th September, 2019 till 2nd March, 2021. The interest has to be paid within a period of three months from date, failing which interest on the two separate amounts as aforesaid i.e. Rs.22,34,255/- and Rs.4,64,350/- will stand increased to 10% per annum being the rate of interest payable at the present under the Payment of Gratuity Act, 1972 for delay in paying the money on such account.

The rate of interest allowed is fair and reasonable and is at the rate allowed by the Hon'ble Supreme Court in a recent judgment reported in (2021) 11 SCC 543 (State of Andhra Pradesh and another V. Dinavahi Lakshmi Kameswari).

Nothing further remains to be adjudicated in the matter. The writ petition is accordingly disposed of. 4

The parties including the WBTC and its officers shall act on a server copy of this order downloaded from the official website of this Court without insisting upon production of a certified copy thereof. Urgent photostat certified copy of this order, if applied for, be given to the parties, upon compliance of necessary formalities.

(ARINDAM MUKHERJEE, J.) pa