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Judgment
Affidavit of service filed in Court today is taken on record.
The petitioner is a retired employee of Calcutta State Transport Corporation (CSTC). He retired from service on 28.02.2026.
The petitioner alleges that he received only 10% of his provident fund dues till date. He also alleges that his gratuity and leave salary was disbursed in his favour belatedly. The petitioner prays for his balance provident fund dues along with interest and interest on account of delayed payment of his terminal dues.
Reliance has been placed on an order dated January 15, 2026 passed by this Court in WPA/28860/2025.
As provident fund, gratuity and leave encashment are the statutory dues of a retired employee; accordingly, the employer is duty bound to disburse the same immediately on retirement of the employee or soon thereafter. There ought not to have been any delay in disbursing the terminal dues of a retired employee.
In view of the above, I direct the Managing Director, CSTC to take steps to release the balance provident fund dues to the petitioner.
As the retired employee will receive the terminal dues after some delay, the amount shall be disbursed along with simple interest calculated at the rate of 6% per annum from the date after the retirement till the date of actual payment within twelve weeks from the date of communication of this order.
It is made clear that if the amount is not disbursed within the aforesaid time limit, then the petitioner would be entitled to receive 2% additional interest i.e. (6%+2%)=8% interest on the due amount calculated on and from the next date of retirement till the date of actual payment.
In the event, at the time of disbursement, the authorities do not have sufficient funds, the State authorities are directed to disburse the concerned amount in favour of the respondent no.5.
With the afore-stated directions, the writ petition is disposed of. There shall, however, be no order as to costs.
Urgent Photostat Certified copy of this order, if applied for, be supplied to the parties upon compliance of requisite formalities.
