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IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
M. K. THAKKER
Anantbhai Harjivandas Solanki – Appellant
Versus
Chief Officer, Nadiad Nagarpalika – Respondent
| Table of Content |
|---|
| 1. jurisdiction to return rule (Para 1 , 4) |
| 2. gratuity claim and payment specifics (Para 3) |
| 3. arguments regarding entitlement and interest (Para 5 , 6) |
| 4. court's position on delay and interest application (Para 7 , 8) |
| 5. final ruling on the petition's merits (Para 9 , 10 , 11) |
JUDGMENT :
1. Rule returnable forthwith. Learned advocate Mr.Mehul Sharad Shah has waived the service of notice of Rule on behalf of the respondent.
3. It is the case of the present petitioner that he was employed with Nadiad Nagarpalika as a Clerk in the Drainage Department, and retired from service on 31.12.2016, after completing 38 years and 8 months of service. According to the petitioner, he was entitled to receive gratuity amounting to Rs. 6,81,750/-. However, the respondent paid only Rs. 4,02,637/- towards gratuity. For the balance amount of Rs. 2,97,113/-, along with interest, the petitioner filed an application before the learned Controlling Authority on 21.06.2022. The learned Controlling Authority, while allowing the application, directed payment of interest at the rate of 10% from the date of the application. The said order was affirmed by the learned Appellate Authority, and the same
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 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.
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.
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....
An employer must pay gratuity within 30 days and is liable for interest if delayed, regardless of an employee's application.
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.
Employees are entitled to statutory interest on delayed gratuity payments as per Central Government notifications, irrespective of disputes causing delays.
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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