#interest on delayed payments

The Allahabad High Court has ruled that delayed payment of leave encashment - even when not mandated by statute - attracts 7% interest as a natural consequence of delayed capital, reinforcing the principle that administrative delays cannot deprive employees of fair compensation. This sets a critical precedent for all government and public sector employees awaiting delayed service benefits, aligning them with the equity-based logic of natural justice.

The Madhya Pradesh High Court ruled that employers must pay 4% per annum interest on delayed gratuity payments, even if the employee's qualifications are later challenged. The court held that once an employee is allowed to work until superannuation, disputes over qualifications cannot justify withholding statutory benefits, reinforcing employer liability for delayed payments under the Payment of Gratuity Act.

Tripura High Court rules that res judicata under Explanation V to Section 11 CPC bars a subsequent writ petition seeking interest on post-retiral benefits if the same claim was previously raised and denied. The decision reinforces that even payment of principal amounts does not revive barred interest claims, impacting government employees seeking retiral dues.

Government employees acquitted of criminal charges are entitled to 7% interest on withheld pensionary benefits, with interest starting two months after the later of their retirement or acquittal. This ruling enforces financial accountability for delayed payments even when service-related proceedings are pending, setting a clear timeline for entitlement and reinforcing the principle that acquittal restores full service rights.

Madurai HC reinforces that state transport corporations must pay 6% interest on delayed terminal benefits, directing compliance within five months. The ruling underscores the legal obligation to compensate retired employees for administrative delays, setting a binding precedent for similar cases.

MP High Court rules that wound-up corporations remain liable to pay 6% annual interest on belated retiral dues from retirement date until payment, regardless of financial constraints. The judgment reinforces that delayed settlement beyond 3-5 years is unreasonable, protecting public sector employees under the Employee Pension Scheme 1995.

The Madras High Court has mandated that public employers must pay 6% annual interest on delayed disbursement of terminal benefits-including Provident Fund, gratuity, pension commutation, and earned leave-from the date of retirement until actual payment. This ruling establishes a binding precedent for fair compensation in public sector employment disputes.

Madhya Pradesh High Court holds that employers must pay 6% interest on delayed retiral benefits even after winding up, if employment continued till superannuation.

Calcutta High Court holds that gratuity payable upon retirement must be disbursed in full without installments, with statutory interest from due date.