The central legal point established in the judgment is the obligation of the employer to timely settle retirement benefits, including gratuity, as per the provisions of the Payment of Gratuity Act, 1972.

JUDGMENT

(Prayer: Writ Petition filed under Article 226 of Constitution of India, praying for issuance of Writ of Mandamus directing the respondents to settle the Gratuity payable to the petitioner in accordance with the Section 4(1) of the Payment of Gratuity Act, 1972 and also to pay the interest in terms of Section 7 (3-A) of the Act to the amount of gratuity from the date of his superannuation till the actual date of payment and in accordance with the representation initially filed on 16.04.2018 and lastly filed on 13.07.2020 within the time limit.)

1. This writ petition has been filed seeking to issue a Writ of Mandamus to direct the respondents to settle the Gratuity payable to the petitioner in accordance with the Section 4(1) of the Payment of Gratuity Act, 1972 and also to pay the interest in terms of Section 7 (3-A) of the Act to the amount of gratuity from the date of his superannuation till the actual date of payment and in accordance with the representation initially filed on 16.04.2018 and lastly filed on 13.07.2020 within the time limit or pass further orders as deemed fit and proper in the circumstances of the case and render justice.

2. On behalf of the respondents a counter affidavit has been filed. The petitioner filed his rejoinder.

3. The learned counsel for the petitioner submits that the petitioner passed M.A.(Tamil), M.Phil and Ph.D. in Tamil. He entered into the service as “Research Fellow” in Pondicherry Institute of Linguistics and Culture, Puducherry on 24.07.1995 in the scale of pay of Rs.2200-75-2275-EB-75- 2500 plus D.A., HRA as admissible to the employees of Pondicherry Institute of Linguistics and Culture, Puducherry. The scale of pay was fixed by the Institute in accordance with the orders of the Government of Puducherry College. The petitioner retired on 28.02.2017, on attaining the age of superannuation, after rendering 22 years of unblemished service. The employer (i.e) the second respondent had not sanctioned payment of gratuity as per rules in force (i.e,) Clause (i) of the sub rule (1) of rule 8 of the payment of Gratuity (Central) rules, 1972.

4. The learned counsel submits that the gratuity is a type of retirement benefit and it will be made with the intent of monetarily helping the employee after his retirement. The general principle underlying a gratuity scheme is that by service over a long period, the employee is entitled to claim a certain amount as retirement benefit.

5. The learned counsel further submits that gratuity has to be paid to an employee for his meritorious and honest service rendered to the employer. The Gratuity is being paid at the rate of 15 days wages for every completed years of service or part thereof in excess of six months. The 15 days wages will be calculated by dividing the last drawn wages by 26 and multiplying the result with 15. Under Section 4(3) the maximum gratuity that is payable is fixed at Rs.20,00,000/- as per the Gratuity (Amendment) Act, 2018.

6. The learned counsel would further submit that the Pondicherry Institute of Linguistics and Culture, Puducherry is one of the institute started long ago in the year 1986 by the Government of Puducherry, under the Societies Act. It is a non-profit making educational society financed wholly and substantially by the Government of Puducherry by way of Grant-in-Aid. The learned counsel contends that the academic and non-academic staff of the Pondicherry Institute of Linguistics and Culture have fulfilled the conditions required to qualify for pension, as such they are very much eligible to exercise the pension scheme as per rules in force.

7. The learned counsel for the petitioner submits that the retirement benefits are not settled by the respondents to the petitioner which is in violation of Articles 14 and 16 of the Constitution of India. The petitioner have made representations to the Director, Pondicherry Institute of Linguistics and Culture, Puducherry on 16.04.2018, 23.07.2019, 29.05.2020 and 13.07.2020, there