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K. MANMADHA RAO
Vedanaparthi Jayachandra Raddy – Appellant
Versus
State of A. P. – Respondent
JUDGMENT
1. This petition is filed under Article 226 of the Constitution of India for the following relief:-
"...to issue a writ order or direction more particularly one in the nature of Writ of Mandamus directing the fourth respondent to pay the amount due and payable to the petitioner towards gratuity, leave encashment and arrears on account of pay revision scale for the period from 1/11/2017 to 30/6/2019 with interest at 12% per annum on the delayed payment, without causing any further delay and to pass such other order or orders......."
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 16/7/2012 and after training he was posted to NDCCB Kota Branch at Kota and worked there from 1/8/2012 to 30/6/2019. The main grievance of the petitioner is that he was not paid terminal benefits. Therefore, he made representations on 6/10/2019 and 20/1/2021 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
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.
Employees are entitled to their lawful terminal benefits, and such payments must be honored irrespective of the employer's financial difficulties.
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, ....
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.
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