IN THE HIGH COURT OF JUDICATURE AT PATNA CWJC No.2280 of 2008 UMESH NARAYAN AMBASTHA, Son of Late Basant Narayan Ambastha, resident of Mohalla- Lohanipur, Das Lane, P.O. Kadam Kuan, P.S. Kadam Kuan, District-Patna -----------Petitioner Versus 1. THE STATE OF BIHAR through the Secretary, Co-operative Department, Bihar,Patna 2. The Bihar State Cooperative Bank Ltd. , Ashok Raj Path, Patna through its Managing Director 3. Managing Director, Bihar State Cooperative Bank Ltd, Ashok Raj Path,Patna-4 4. Deputy General Manager, Personal & Administration Department, Bihar,Patna Cooperative Bank Ltd. , Ashok Raj Path,Patna-4 ----------------------- Respondents. ----------- 05 16-12-2010 Heard Sri Ram Janam Prasad, learned counsel for the petitioner, Sri S.N.Pathak, learned counsel appearing on behalf of the Bihar State Cooperative Bank Ltd. (i.e. Respondent Nos. 2 to 4). The petitioner, while invoking writ jurisdiction of this Court, has prayed for directing the Respondent Bank to pay statutory interest on market rate on the delayed payment of gratuity and leave salary. The petitioner, who was to retire with effect from 30.11.2002 as Assistant Manager from the Bihar State Cooperative Bank was put under suspension with effect from 10.11.2002 and a departmental proceeding was initiated against him. Finally, on 30.1.2003 vide Annexure-2 to the petition, departmental proceeding concluded against the petitioner and as a measure of punishment, it was directed to forfeit the gratuity, leave salary and non- C.P.F. dues. Aggrieved with the order of punishment, initially the petitioner filed a writ petition vide C.W.J.C.No.2713 of 2003 before this Court. However, keeping in view the fact that there was alternative 2 remedy for filing statutory appeal, the petition was dismissed as withdrawn and thereafter an appeal was preferred before the Registrar, Co-operative Societies. After hearing the parties, by order dated 14.6. 2007, the Registrar, Cooperative Societies quashed the order of punishment imposed by the Managing Director of the Bank, which is Annexure-2 to the petition. The order of the Registrar, Co-operative Societies has been brought on record as Annexure-3 to the petition. After the appeal was allowed, the Bank on 3.10.2007 in compliance with the order of the appellate Court made payment of gratuity amount as well as leave salary to the petitioner. However, while making payment, no interest was paid to the petitioner. Accordingly, the petitioner filed a representation before the Managing Director vide Annexure-6 to the petition. Since no decision was taken by the Managing Director, i.e. Respondent no.3, the petitioner approached this Court by filing the present writ petition. In the present case, Respondent no.3 i.e. the State was arrayed as formal Respondent. However, a counter affidavit on behalf of Respondent nos. 2 to 4 i.e. Bihar State Cooperative Bank Ltd. has been filed. It has been submitted by Sri Pathak, learned counsel for the Bank that there was no intentional laches on the part of the Bank and immediately after the order was passed by the appellate court i.e. Registrar of the Cooperative Societies, the Bank has cleared the entire dues and, as such, it is not a fit case for passing the order for making payment of interest. Learned counsel for the petitioner submits that whatever reason may be the fact remains that the petitioner was to retire with 3 effect from 30.11.2002 and subsequent to his retirement in a departmental proceeding as a measure of punishment, gratuity and leave salary was forfeited. It was submitted that since the appellate court subsequently quashed the order of punishment, naturally the petitioner was entitled to get the dues back with interest. After hearing the parties, the Court is of the opinion that once the order of punishment was set aside, the petitioner was legally entitled to get back the said amount with statutory interest as well as interest at the market rate. The order of punishment was set aside by the Registrar, Cooperative Societies, i.e. Annexure-3 to the petition .It has not been denied by the learned counsel for the Bank that the order passed by the Registrar, Cooperative Societies was never challenged and it has attained its finality. After the order of punishment was set aside, there was no reason to deny statutory interest as well as interest at market rate on the dues, which was deferred from 30.11.2002 to the date of payment i.e. 03.10.2007 . The Court is of the opinion that the petitioner is entitled to get statutory interest on the gratuity amount as well as interest at market rate on leave salary from 30.11.2002 to 3.10.2010, the date on which the payment was made. Accordingly, Respondent Bank is directed to calculate the interest amount in accordance with law and make payment within a period of eight weeks from the date of receipt/production of a copy of this order. With above observation and direction, the petition stands allowed. NKS/- ( Rakesh Kumar, J.)