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Judgment
Barin Ghosh, J.—Heard both the parties. In June, 1984, Group Insurance Scheme was introduced by the Board and at that stage, the Board held out that interest on the amount deducted from the salary of its employees shall carry interest at the rate of twelve and half percent per annum.
On 26th October, 2002, the Board decided that the amount deducted from the salaries of its employees shall be deposited with Life Insurance Corporation of India and whatever Life Insurance Corporation of India shall pay by way of accretions on such deposits will be paid to the employees of the Board. As a result, there is a possibility that the investment by the employees on account of Group Insurance may stand reduced from twelve and half percent per annum as was originally agreed.
The Board is proposing to pay only such money as Life Insurance Company is now proposing to pay. This has resulted in filing the present writ petition.
Board having had held out in June, 1984 that the deposits by its employees will carry interest at the rate of twelve and half percent cannot be permitted to turn around from such holding out of promise. At the same time, the employees on the Board cannot call in question the business decision of the Board dated 25th October, 2005 pertaining to investment of Group Insurance collection with Life Insurance Corporation of India and proposing to pay the same with accretions thereto as would be paid by Life Insurance Corporation of India.
In those circumstances, the petitioner shall be entitled to interest at the rate of twelve and half percent per annum on the sum upon which such interest was applicable from June, 1984 until 25th October, 2002 and thereupon at such rate as Life Insurance Corporation of India may decide to pay. The Board is requested to approach the Life Insurance Company forthwith, if not already approached, for recovery of the amount due to the petitioner and to ensure payment of the aforementioned dues of the petitioner as quickly as possible but not later than three months from today. This disposes of the writ petition.