Back
V. KAMESWAR RAO, ANOOP KUMAR MENDIRATTA
Govt. of NCT of Delhi – Appellant
Versus
Ramesh Sagar – Respondent
JUDGMENT
V. Kameswar Rao, J. (Oral)
1. The challenge in this writ petition is to an order dated September 14, 2023, passed by the Central Administrative Tribunal Principal Bench, New Delhi (`Tribunal', for short) in MA No.3204/2021 in Original Application No.4488/2011 (`OA', for short), whereby the Tribunal has granted three weeks time as a last opportunity to petitioners herein to file an affidavit indicating compliance of directions of the Tribunal particularly as contained in paragraph 17 of the order dated July 27, 2012, passed in the OA. Suffice to state, paragraph 17 of the order dated July 27, 2012 reads as under:
"17. However, prayer 8.3 made in the OA is allowed, and as and when the withheld amount of gratuity is disbursed to the applicant, simple interest at the rate of applicable rates of interest on Provident Fund from time to time, for the whole period, shall be paid to the applicant, without any compounding of the interest."
2. It may be stated here that the respondent herein had filed the OA before the Tribunal wherein the issue was with regard to the final orders to be passed on the inquiry report pursuant to charge sheet issued to the respondent herein which was conve
The interest on the gratuity was to be paid one month after July 27, 2012, as directed by the Tribunal, and not from 2004 as claimed by the respondent.
An employer must pay gratuity within 30 days and is liable for interest if delayed, regardless of an employee's application.
Interest under the Payment of Gratuity Act is due from the date of entitlement unless hindered by claim delays, resulting in dismissal of a petition for earlier interest claims.
Employer must pay gratuity within 30 days of it becoming due, with interest chargeable after this period, regardless of employee application.
The court held that the employer was justified in withholding the gratuity pending finalization of disciplinary proceedings as permitted in Section 4(6) of the Payment of Gratuity Act.
Retired employees are entitled to gratuity and interest on delayed payments, with the court having no discretion to deny interest under the Payment of Gratuity Act.
The right to interest on delayed gratuity payments is statutory and mandatory under Section 7(3-A) of the Payment of Gratuity Act, 1972.
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.
An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers
Please visit our Training & Support
Center or Contact Us for assistance
Scan Me!
India’s Legal research and Law Firm App, Download now!
For Daily Legal Updates, Join us on :
Back to top
