IN THE HIGH COURT OF JUDICATURE AT BOMBAY
RAVINDRA V. GHUGE, ASHWIN D. BHOBE, JJ.
Dr. Chetna Rajput - Appellant
Versus
Modern Education Society - Respondents
Writ Petition No.11027 of 2024
Decided on : 28-03-2025
(A) Constitution of India - Article 226 - Payment of Gratuity Act, 1972 - Delay in releasing gratuity and pension benefits - Petitioner, a retired teacher, claimed gratuity and pension after 25 years of service - Respondents failed to process payments timely, leading to the petition - Court directed Respondents to pay gratuity with 10% interest within 30 days, acknowledging the obligation under the Gratuity Act. (Paras 11-16)
(B) Legal obligation - An employer must pay gratuity within one month of retirement; failure to do so without justification is arbitrary. (Paras 13-14)
Facts of the case:
The Petitioner retired on 30.09.2023 after serving as a part-time and then full-time teacher. Despite repeated requests, gratuity and pension were not released, prompting the petition.
Findings of Court:
The delay in payment of gratuity was unjustified and arbitrary; the Respondents were directed to pay the amount with interest.
Issues: Whether the Respondents' inaction regarding gratuity and pension payments was arbitrary and prejudicial to the Petitioner?
Ratio Decidendi: The court emphasized the employer's duty to pay gratuity promptly and held that unjustified delays in payment compel an employee to seek legal recourse.
Result: Writ Petition partly allowed, directing payment of gratuity and processing of pension.
JUDGMENT :
ASHWIN D. BHOBE, J.
1. Rule. Rule made returnable forthwith and heard finally by the consent of the parties.
2. By the present petition filed under Article 226 of the Constitution of India, Petitioner, a teacher having retired after rendering 25 years service with the Respondent Nos.1 and 2 Institution, is before this Court making a grievance of the inaction/delay on the part of the Respondents in releasing the gratuity amount and the pensionary benefits payable to her.
3. Factual Matrix:-
a) Petitioner holds qualification of master’s degree in Hindi language and B.Ed. degree.
b) On 14.07.1998, Respondent Nos.2 published advertisement in the daily “Loksatta” inviting applications from eligible candidates for the post of part-time teacher for the subject Hindi, a post which was 100% aided and sanctioned post.
c) Petitioner was appointed as a part-time teacher vide appointment order dated 20.07.1998, for a term up to 15.04.1999. Said appointment was approved by the Regional Deputy Director of Education, Pune.
d) Subsequently w.e.f. 25.07.2000 till the year 2018, in view of the limited tenure of the approval, the Management issued fresh appointment orders to Petitioner as a part-time teacher on year to year basis i.e. from 1999-2000 to 2018- 2019. Said appointments were approved by the Regional Deputy Director of Education.
e) Since, the year 2000, Petitioner worked as a part-time teacher at Nowrosjee Wadia College and as part-time (Shikshan Sevak) at Ness Wadia College of Commerce with the workload of 18 hours of per week.
f) Upon superannuation of Dr. Lata Rokade, working as a full-time Assistant Teacher on a sanctioned post, fell vacant w.e.f. 17.06.2019.
g) By order dated 10.06.2019, Petitioner was appointed as a full-time Assistant Teacher on the post earlier occupied by of Dr. Lata Rokade.
h) By order dated 07.09.2023, Regional Deputy Director of Education Pune accorded approval to the appointment of the Petitioner as a Assistant Teacher w.e.f. 17.06.2019.
i) On 27.09.2023, Petitioner called upon the Respondent No.2 to compute and release the gratuity amount on the date of her retirement i.e. 30.09.2023.
j) Petitioner retired from service on 30.09.2023 upon attaining the age of superannuation.
k) On 12.04.2024, Petitioner by her representation called upon the Respondent No.2 to release her gratuity amount and process the pension paper.
l) Respondent No.2 neither replied nor complied with the requisition made by the Petitioner.
m) Aggrieved, the Petitioner is before this Court, seeking the following substantial reliefs:-
“[A] That this Honorable Court be pleased to issue a Writ of Mandamus or Writ in the nature of Mandamus or any other appropriate writ direction or order under Article 226 of the Constitution of India, 1950 directing the Respondent No.1 and 2 to process the papers of pension and the Respondent Nos. 5 & 6 be further directed to release the pension in the time bound manner.
[B] That this Honorable Court be pleased to issue a Writ of Mandamus or Writ in the nature of Mandamus or any other appropriate writ direction or order under Article 226 of the Constitution of India, 1950 directing the Respondent No. 1 and 2 to award the Petitioner the amount of gratuity as per provisions of Payment of Gratuity Act along with appropriate interest”
n) On 21.08.2024, this Court passed the following order:-
“ The grievance of the Petitioner is that even though the Petitioner has retired from service on 28 September 2023, his pension along with the other benefits have not been released. He seeks directions to Respondent Nos. 1 and 2 to process the papers and to Respondent Nos. 5 and 6 to release the pension along with the other benefits.
2. The learned Counsel appears for Respondent Nos. 1 and
2 and seeks time. Stand over to 9 September 2024.
3. If there is no impediment in law and facts, then Respondent Nos. 1 and 2 will take necessary steps to process the pension papers and submit the same to Respondent Nos. 5 and 6 before the next date. I
An employer is legally obligated to pay gratuity within one month of retirement; unjustified delays in payment are arbitrary and compel legal action.
The main legal point established in the judgment is the statutory entitlement of an employee to interest on delayed payment of gratuity as per the provisions of the Payment of Gratuity Act, 1972.
The delay in filing a writ petition does not bar relief if there is no statutory limitation regarding the payment of pension and gratuity.
Employees' rightful entitlement to salaries and pensions, and the need for equitable considerations in cases of deferred payments.
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