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M. K. THAKKER
Chief Administrative Officer, Gujarat Water Supply And Sewerage Board – Appellant
Versus
Maheshbhai Vrajlal Makwana – Respondent
JUDGMENT :
M. K. Thakker, J.
1. Rule returnable forthwith. Learned advocate Mr.Jeet Rajyaguru waives service of Rule on behalf of respondent.
2. This petition is filed under article 14, 226 and 227 of the Constitution of India with the following prayer:
3. It is the case of the petitioner that respondent No.1 was working as a Deputy Executive Engineer with the Board from 30.03.1984, on completion of 36 years and 6 months service, respondent No.1 retired on attaining the age of superannuation on 30.09.2020. The gratuity of Rs.20,00,000/- was paid to the respondent-workman on 21.09.2021 and as there was a delay of 10 months in payment of gratuity the application was preferred under section 7 (3-A) of the Payment of Gratuity Act, 1972 for seeking payment of interest on delayed period. Learned Controlling Authority has passed an order allowing the application preferred by the respondent-workman and directin
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 right to interest on delayed gratuity payments is statutory and mandatory under Section 7(3-A) of the Payment of Gratuity Act, 1972.
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....
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.
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 mandatory obligation of employers to pay gratuity within the specified timeframe includes the responsibility to pay interest on delayed payments, as established by the Payment of Gratuity Act.
An employer must pay gratuity within 30 days and is liable for interest if delayed, regardless of an employee's application.
Employer must pay gratuity within 30 days of it becoming due, with interest chargeable after this period, regardless of employee application.
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