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IN THE HIGH COURT OF ORISSA, CUTTACK
SANJAY KUMAR MISHRA
Managing Director, Odisha State Cooperative Bank Ltd, Bhubaneswar – Appellant
Versus
Managobinda Barik – Respondent
| Table of Content |
|---|
| 1. challenge to prior authority's decision. (Para 1) |
| 2. petitioner confines claim to interest. (Para 2 , 4) |
| 3. opposing counsel argues for 10% interest. (Para 5) |
| 4. statutory interest provision outlined. (Para 6 , 7) |
| 5. court mandates 10% interest on delayed gratuity. (Para 8 , 9 , 10) |
| 6. reviews of legal precedents regarding interest. (Para 11 , 12 , 13) |
| 7. emphasis on legal ethics in court. (Para 20 , 21) |
| 8. principles of per incuriam established. (Para 22 , 24) |
| 9. writ petition dismissed with costs. (Para 27 , 30) |
JUDGMENT :
1. This writ petition has been preferred by the Petitioner-Bank challenging the order dated 08.02.2019 passed by the Appellate Authority under P.G. Act-cum- Joint Labour Commissioner (O.P. No.2) in P.G. Appeal Case No.4 of 2018/10/2019, vide which the Opposite Party No.2 confirmed the order dated 11.04.2018 passed in P.G. Case No.20 of 2017 by the Controlling Authority under the Payment of Gratuity Act, 1972, shortly, “the P.G. Act”.
3. The said submission of the learned Counsel for the Petitioner was also duly recorded vide order dated 23.09.2025. Paragraph Nos.3 & 4 of the said order dated 23.09.2025, being relevant, are reproduced below:-
4. He furth
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.
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.
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....
Employer must pay gratuity within 30 days of it becoming due, with interest chargeable after this period, regardless of employee application.
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.
Gratuity under the Payment of Gratuity Act, 1972 must include entire continuous service, including stop-gap employment, unless exempted by the appropriate Government.
The entire duration of an employee's service is considered for Gratuity entitlements, and non-deposit of awarded Gratuity prevents appellants from successfully appealing against such claims.
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.
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