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ANUBHA RAWAT CHOUDHARY
Tata Steel Limited – Appellant
Versus
State of Jharkhand – Respondent
JUDGMENT :
Heard the learned counsels appearing on behalf of the parties.
2. This writ petition has been filed for the following reliefs:
(ii) For quashing the order dated 19.08.2021 passed by the Deputy Labour Commissioner-cum-Controlling Authority under the Payment of Gratuity Act, 1972, Kolhan Division, Jamshedpur in G.A. Case No. 02 of 2017 whereby and where under the respondent no.3 has directed the payment of simple interest @ 10% per annum on the amount of gratuity (Rs. 10,67,308.00) within 30 days from the date of the issuance of the order. (Annex 3) And or for issuance of any such writ(s)/ order (s)/ direction(s) as this Hon'ble Court may deem fit and proper in the facts and circumstances of the case for doing conscionable justice to the petitioner.”
Arguments of the Petitioner.
3. The learned counsel
The statutory notification setting the interest rate for gratuity under the Payment of Gratuity Act is binding until modified by a new notification from the government.
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.
The statutory interest rate for delayed gratuity payments is 10%, as mandated by Section 7(3A) of the Payment of Gratuity Act, 1972, and prior contrary rulings are not binding.
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....
The right to interest on delayed gratuity payments is statutory and mandatory under Section 7(3-A) of the Payment of Gratuity Act, 1972.
Gratuity under the Payment of Gratuity Act, 1972 must include entire continuous service, including stop-gap employment, unless exempted by the appropriate Government.
The right to interest on delayed gratuity payments is statutory and mandatory under Section 7(3-A) of the Payment of Gratuity Act, 1972.
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.
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