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K. MANMADHA RAO
Vedanaparthi Jayachandra Reddy – Appellant
Versus
State Of Andhra Pradesh – Respondent
ORDER :
This petition is filed under Article 226 of the Constitution of India for the following relief:-
2. The case of the petitioner is that he was selected and appointed as Staff Assistant/Supervisor in the District Cooperative Central Bank Limited, SPSR Nellore and joined duty on 16.07.2012 and after training he was posted to NDCCB Kota Branch at Kota and worked there from 1.8.2012 to 30.06.2019. The main grievance of the petitioner is that he was not paid terminal benefits. Therefore, he made representations on 6.10.2019 and 20.01.2021 to the 4th respondent seeking to release of his terminal benefits. Then, the 4th respondent informed him that the bank will settle terminal benefits on finalization of the surcharge enquiry.
Basing on the vigilance report,
Gratuity is exempt from attachment and cannot be withheld pending surcharge proceedings under the A.P. Cooperative Societies Act, 1964.
The court established that employees are entitled to interest on delayed retiral benefits and deprecated the practice of seeking affidavits to waive interest and withdraw cases.
Writ petition decision underscores that withholding terminal benefits violates statutory rights under labor law, mandating their release with interest.
Retirement benefits, including gratuity and leave encashment, are statutory rights under the Payment of Gratuity Act, 1972, mandating timely payment regardless of the employer's financial situation.
The central legal point established in the judgment is the exclusive domain of the Controlling Authority for adjudication of disputes related to gratuity under Sec. 7 of the Payment of Gratuity Act, ....
Employees are entitled to their lawful terminal benefits, and such payments must be honored irrespective of the employer's financial difficulties.
The court ruled that the computation of gratuity dues is under the jurisdiction of the Controlling Authority, making a Writ Petition not maintainable when an alternative remedy exists.
Surcharge proceedings cannot be continued after the retirement of an employee, and the gratuity amount is protected from attachment under Section 13 of the Payment of Gratuity Act, 1972.
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