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Smart Summary

Factual and Procedural Background

The writ petition was filed by the petitioner, a retired Assistant Teacher of Liluah Bharatiya High School, District-Nadia, seeking a direction upon the respondent authorities to pay interest on the gratuity amount due to its belated payment. The petitioner retired on September 30, 2012, and the gratuity payment was made on May 31, 2013, based on the Pension Payment Order. The petition challenges the delay in payment and the consequent entitlement to interest on the gratuity amount.

Legal Issues Presented

  1. Whether the respondent authorities are liable to pay interest on the delayed payment of gratuity to the petitioner.
  2. If so, at what rate and for what period should such interest be calculated and paid.

Arguments of the Parties

The opinion does not contain a detailed account of the parties' legal arguments.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Abha Acharya v. State of West Bengal (W.P 10750 (W) of 2007, July 9, 2008) Entitlement to gratuity is automatic and must be paid on the date of retirement; delay entitles the employee to interest on gratuity. The Court relied on this precedent to direct payment of interest on delayed gratuity, applying a 9% per annum rate for the period from retirement to actual payment.

Court's Reasoning and Analysis

The Court noted that the legal issue regarding delayed payment of gratuity and entitlement to interest had been settled in the precedent Abha Acharya v. State of West Bengal. The principle established is that gratuity is payable automatically on the date of retirement, and any delay in payment entitles the retiree to interest. The Court acknowledged submissions that responsibility for delay need not be adjudicated since the entitlement is automatic, except when departmental action justifies withholding payment. The Court found no reason to deviate from this principle and accordingly directed payment of interest at 9% per annum, reflecting the highest fixed deposit rate offered by nationalized banks. It further imposed an additional 2% interest penalty for failure to comply within the stipulated 90 days.

Holding and Implications

DISPOSED OF

The Court directed the respondent authority to pay interest on the delayed gratuity amount at 9% per annum from the date of the petitioner’s retirement until the date of actual payment, to be paid within 90 days of the order's communication. Failure to comply will attract an additional 2% interest per annum. No order as to costs was made. The decision enforces timely payment of gratuity with interest but does not set any new precedent beyond affirming established law.

    Ashok Kumar Pandey v. The State Of West Bengal & Ors.

    Debasish Kar Gupta, J.:— Let the affidavit of service be kept on record.

    This writ petition is filed by the writ petitioner for a direction upon the respondent authorities to pay interest on gratuity for belated payment of the same.

    Having heard the learned Counsel appearing for the respective parties and also considering the facts and circumstances of the case, I find that the petitioner was an Assistant Teacher of Liluah Bharatiya High School, District-Nadia and the petitioner retired after attaining the age of superannuation on September 30, 2012.

    The payment was made to the petitioner on the basis of the Pension Payment Order on May 31, 2013.

    The point of law, which is involved in this writ application, has already been settled by a judgment delivered by a Single Bench of this Court in W.P 10750 (W) of 2007 on July 9, 2008 in the matter of Abha Acharya v. State of West Bengal In the above case the petitioner was a primary school teacher and there was delay in releasing his gratuity money. Operative portion of the above decision is quoted below:-

    “Following the said Judgment and/or Order, I dispose of W.P No. 1867 (W) of 2007 on 04.04.2008 and in other similar matters, I observed that since the issue was similar, the Order that Ihad passed in the said W.P No. 1867 (W) of 2007 should govern those cases also.

    However today when this huge pile of cases were heard, a submission was made which was not made in the cases before me referred to above, and which was to the effect that there cannot be any adjudication on the question as to who was responsible for delay in matters pertaining to payment of gratuity because the entitlement to gratuity is automatic and is to be paid on the very day the person retires. Even the learned Advocate General did not dispute this contention and very frankly and fairly stated that so far as the gratuity is concerned, it has to be paid on the date the person retires with the only exception that it can be withheld in cases where a departmental action is pending against the concerned employee.”

    On the basis of the above observation, direction was given to the respondent authority to pay interest of gratuity at the rate of 10% per annum. I do not find any reason for disagreeing with the above decision. Accordingly, I direct the respondent authority to give 9% interest per annum on the gratuity amount paid to the petitioner for a period from the date of retirement of the petitioner up to the date of its actual payment. Such payment shall be made within 90 days from the date of communication of this order along with copy of this writ application upon the Director of Pension, Provident Fund and Group Insurance, Government of West Bengal as also the concerned Treasury Officer.

    It is further made clear that failure on the part of the respondent authority to pay the aforesaid interest within the stipulated time, an additional interest at the rate of 2% per annum shall be paid to the petitioner.

    It is necessary to point out that the rate of interest is fixed at 9% per annum taking into consideration the highest rate of interest payable by a nationalised bank on fixed deposit.

    The writ petition, is, thus, disposed of.

    However, there will be no order as to costs.

    Urgent photostat certified copy be supplied to the parties, if applied for, on priority basis.

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    Comments

    Ashok Kumar Pandey v. The State Of West Bengal & Ors.
    (Jun 25, 2014)