CAT - ['Kolkata']

Interest is payable on retirement dues only and cannot be extended to salary or bonuses without specific judicial direction.

Arjun kumar mondal vs EAST CENTRAL RAILWAY

CAT - ['Kolkata']JUDGMENT: May 08, 20262 MIN READSOURCE JUDGMENT
THE ORIGINAL LAWLENS SUMMARY
01

Facts

The applicant, a retired Senior Section Engineer from East Central Railway, previously filed O.A. No. 350/1254/2023 seeking the release of retirement dues. That O.A. was allowed on 28.02.2024, with a direction to the respondents to pay interest on delayed retirement dues at the rate applicable to Provident Fund (PF) deposits.

Source reference: p. 2, para 2.1

A subsequent contempt petition (C.P. 141/2024) was dropped on 18.02.2025 with liberty to the applicant to file a fresh O.A. if aggrieved by the implementation.

Source reference: p. 2, para 2.2

The applicant filed the present O.A. alleging that the respondents failed to pay interest at the correct rate (7.1%) on DCRG, Leave Encashment, GIS, and CTG, and failed to pay any interest on his last salary (August 2021), Bonus (PLB), and Miscellaneous Bills.

Source reference: p. 2, paras 2.3–2.4
02

Issues

1. Whether the respondents complied with the Tribunal’s earlier direction to pay interest on retirement dues at the PF deposit rate.

Source reference: p. 3, para 4

2. Whether the applicant is entitled to interest on salary, bonus (PLB), and miscellaneous bills in the absence of a specific prior judicial direction.

Source reference: p. 4, para 7; p. 5, para 9
03

Law Applied

Section 19 of the Administrative Tribunal Act, 1985, governing the adjudication of grievances regarding service matters.

Source reference: p. 1, para 1

The court primarily relied on the doctrine of res judicata and the finality of judicial orders, specifically the previous directions issued in O.A. No. 350/1254/2023, which limited the grant of interest to "retirement dues" at the rate applicable to Railway Provident Fund deposits.

Source reference: p. 2, para 2.1; p. 5, para 9
04

Reasoning

The Tribunal examined the calculation sheet (Annexure R-1) provided by the respondents, which demonstrated that a total of ₹28,39,774/- (including ₹5,10,022/- as interest @ 7.1% for 37 months) had been paid toward DCRG, Leave Encashment, CTG, and GIS.

Source reference: p. 4, para 4

Regarding the claims for interest on salary, bonus, and miscellaneous bills, the Tribunal noted that these items were indeed paid to the applicant via various bills in October and November 2024.

Source reference: p. 4, paras 5–6

The Tribunal observed that its prior order dated 28.02.2024 specifically mandated interest only for "retirement dues" and contained no direction regarding interest on salary or bonuses. Consequently, the respondents were found to have acted within the scope of the original judicial mandate by excluding interest on those specific heads.

Source reference: p. 4, para 7; p. 5, para 9
05

Holding

The Tribunal held that the respondents had fully complied with the previous order in letter and spirit by paying the retirement dues along with interest at the PF rate of 7.1%. The claim for additional interest on non-retirement items (salary and bonus) was rejected as it fell outside the scope of the previous directions.

The Original Application was dismissed with no order as to costs.

Source reference: p. 5, para 10
CAT - ['Kolkata']

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Arjun kumar mondalvsEAST CENTRAL RAILWAY

CAT - ['Kolkata'] · May 08, 2026

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