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RAVI KRISHAN KAPUR
Steel Authority of India Ltd. – Appellant
Versus
Ld. Controlling Authority – Respondent
JUDGMENT :
Ravi Krishan Kapur J.
1. The petitioner employer assails an order dated 11 January, 2017 directing payment of an amount of Rs.14,85,448/- as gratuity under section 4 of the Payment of Gratuity Act 1972 alongwith the notice dated 11 January 2017 in Form R and the consequential show cause notice dated 18 May 2017 passed in Case No pg/10/2015/ALCR (SAIL, ASP vs Smt Swasti Ghosh). The petitioner also prays for directions on the respondent no.2 to vacate and surrender the residential accommodation provided by the petitioner which continues to be unauthorisedly occupied by the respondent no.2.
2. Briefly, the husband of the respondent no.2, Mohan Kumar Ghosh was an employee of the Alloy Steel Plant a unit of Steel Authority of India Limited (SAIL) and retired on 31 December, 2014. During the course of his employment, he was allotted premises No.6, Sarat Chandra Avenue, Durgapur Steel Township for his residential accommodation which he was obliged to vacate within two months of his retirement.
3. Shortly after his retirement in January 2015, the said Mohan Kumar Ghosh was paid his outstanding dues on account of provident fund alongwith interest aggregating to Rs.23,46,147/- and Rs.
The court ruled that administrative orders must provide reasons and notice to comply with natural justice principles, and failure to do so renders the order unsustainable.
Employer cannot withhold gratuity for unauthorized retention of quarters post-retirement; statutory interest of 10% applies for delayed payment.
The court determined that gratuity can be withheld if an ex-employee fails to vacate company accommodation, constituting a breach of internal policies.
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....
Once full amount of gratuity becomes payable to the employee due to the consequences of law, then the right to get statutory interest in terms of Section 7(3A) of the Payment of Gratuity Act, cannot ....
The Payment of Gratuity Act allows claims for both statutory and contractual gratuity to be adjudicated under the same authority, ensuring employee rights are protected.
Gratuity cannot be withheld posthumously unless the employee's service was terminated; death in harness entitles the widow to full gratuity under the Act.
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