IN THE HIGH COURT AT CALCUTTA
Raja Basu Chowdhury, J.
Ravi Shankar Malani – Petitioner
Versus
State Bank of India & Ors. – Respondents
WPA 11196 of 2023
Decided On : 16-05-2023
Payment of Gratuity Act, 1972 – Section 8 – Payment of Gratuity (Central) Rules, 1972 – Rule 17, 19 –Determination of Gratuity – Disbursal of interest petitioner consequent upon determination of gratuity payable to petitioner – Petitioner claims to be a Chartered Accountant and was appointed respondent bank on contractual basis vide appointment letter initial appointment of petitioner – Held, Court do not subscribe to view that unless a certificate is issued no interest can be claimed judgment relied on by not assist him and is distinguishable on facts – Case recorded judgment no such application was made before Controlling Authority for issuance of certificate is not the case here - Respondent bank had taken a chance by filing writ petition which ultimately did not succeed – Writ application is disposed of.
JUDGMENT :
Raja Basu Chowdhury, J.
1. Affidavit of service filed in Court today is taken on record.
2. The present writ application has been filed, inter alia, praying for disbursal of interest in favour of the petitioner, consequent upon determination of gratuity payable to the petitioner under the Payment of Gratuity Act, 1972 (hereinafter referred to as the “said Act”).
3. The petitioner claims to be a Chartered Accountant and was appointed in the respondent bank on contractual basis vide appointment letter dated 12th November, 2008. Although, the initial appointment of the petitioner was for the period from 14th November, 2008 to 13th November, 2011, the same was, however, subsequently renewed from time to time by the respondent bank.
4. On 30th June, 2017, the petitioner had submitted his resignation to the respondent bank after having rendered a continuous service for a period of 8 years 7 months and 16 days i.e. between 14th November, 2008 to 30th June, 2017. Following such resignation, the petitioner applied in Form ‘I’ under the provisions of the said Act for disbursal of gratuity in his favour.
5. Since the respondent bank did not disburse the gratuity, the petitioner had applied in Form ‘N’ before the Controlling Authority under the said Act, on 10th November, 2017. On contested hearing, the Controlling Authority was, inter alia, pleased to determine the gratuity payable to the petitioner and by a notice in Form-R dated 31st July, 2018, while calling upon the respondent bank to make payment of the gratuity so determined, also enclosed a copy of the order dated 31st July, 2018, to the aforesaid Form-R.
6. Being aggrieved, the respondent bank had filed a statutory appeal by making a pre-deposit as required under the provisions of the said Act. Such appeal appears to have been filed on 25th September, 2018. The Appellate Authority by its order dated 31st July, 2019, disposed of the said appeal, inter alia, by upholding the order passed by the Controlling Authority. The respondent bank, however, chose to challenge both the orders passed by the Controlling Authority as well as by the Appellate Authority by filing a writ application, which was registered as WPA 16222 of 2021, inter alia, on the ground that the petitioner did not render continuous service for a period of five years or more. By order dated 2nd March, 2022, a co-ordinate Bench of this Court was, inter alia, pleased to set aside the orders passed both by the Controlling Authority as well as by the Appellate Authority on the ground that the petitioner had not rendered continuous service for five years or more.
7. Being aggrieved, the petitioner had filed an appeal which was registered as MAT 451 of 2022. By an order dated 18th April, 2022, the Division Bench of this Court by observing that the order passed by the Controlling Authority dated 31st July, 2018, was tested for its correctness by the Appellate Authority and after reexamining the facts, the Appellate Authority by an order dated 31st July, 2019, having affirmed the said order, was of the view that the order passed by the Controlling Authority and the Appellate Authority is just and proper and ought not to be interfered with by the writ Court. Consequent upon the same, the Division Bench of this Hon’ble Court was pleased to affirm and restore the orders passed by the Controlling Authority and the Appellate Authority and had also permitted the petitioner to withdraw the amount together with interest, lying in deposit before the Controlling Authority on production of a server copy of the judgment.
8. The petitioner had since applied before the office of the Controlling Authority and had withdrawn the money lying in deposit amounting to Rs.4,72,020/-on 24th August, 2022. Since according to the petitioner, the petitioner was also entitled to additional interest for failure on the part of the respondent bank to comply with the direction given by the Controlling Authority and the Appellate Authority, the peti
Forfeiture of gratuity under Section 4(6) of the Payment of Gratuity Act, 1972 requires a co-relation between the exception and the extent of loss or damage suffered by the employer.
Interpreting Act unequivocally indicate that payment of gratuity would not depend upon employee filing an application before employer demanding gratuity but will have to be paid immediately on cessat....
Gratuity under the Payment of Gratuity Act, 1972 must include entire continuous service, including stop-gap employment, unless exempted by the appropriate Government.
The main legal point established in the judgment is the interpretation of the statutory provisions under Section 7 of the Payment of Gratuity Act, 1972, and the legal principles related to the issuan....
Gratuity is a statutory entitlement not subject to withholding after superannuation absent explicit legal grounds for forfeiture, emphasizing employee protection under the Act.
Employer cannot withhold gratuity for unauthorized retention of quarters post-retirement; statutory interest of 10% applies for delayed payment.
The availability of an alternate and efficacious remedy under the statutory provisions and the non-mandatory nature of the requirement of filing a written application for gratuity under Rule 7 of the....
The right to appeal under section 7(7) of the Payment of Gratuity Act, 1972 is a statutory right that cannot be taken away by the failure to serve notice in Form 'R'.
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