Supreme Court Adjudicates Statutory EPF Interest and Wage Arrears for Defunct State Corporations

sketch of the Supreme Court of India
Case
BIHAR STATE ARDH SARKARI ARAJPATI KARAMCHARI MAHA SANGH v. STATE OF BIHAR (Supreme Court of India, 28-09-2026)
Law
Constitution of India, Employees Provident Funds and Miscellaneous Provisions Act.

Highlights of the Judgment:

  • Examination of statutory liabilities and apportionment of dues post-state reorganisation under the Bihar Reorganisation Act, 2000.
  • Judicial standards for computing daily-wagers' wage arrears, replacing static historical rates with equitable lump-sum compensation.
  • Mandatory application of statutory interest at 12 percent per annum under Section 7-Q of the Employees' Provident Funds Act, 1952.
  • Award of 6 percent per annum simple interest on delayed salary arrears as a public-law remedy under Article 21 of the Constitution.