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2022 Supreme(Tri) 369

HIGH COURT OF TRIPURA AGARTALA
Arindam Lodh, J.
Anil Debbarma - Appellant
Versus
State of Tripura & Ors. - Respondents
Writ Petition (C) 940 of 2021
Decided On : 12-05-2022

The amendment of the Payment of Gratuity Act to increase the ceiling limit entitles retired employees to receive additional gratuity payments under the updated provisions.

Headnote:(A) Payment of Gratuity Act, 1972 - Amendment of ceiling limit to Rs.20,00,000/- w.e.f. 29.03.2018 - Petitioner entitled to enhanced gratuity sum of Rs.3,55,365/- - Gratuity payment considered applicable to all Central and State establishments including respondent-Corporation. (Paras 2, 3)

Facts of the case:
Petitioner retired on 31.01.2021, gratuity initially paid at ceiling limit of Rs.10,00,000/-. Petitioner claimed additional gratuity based on updated ceiling limit.

Findings of Court:
Court directed recalculation of gratuity and payment of the additional sum along with interest at 7% per annum.

Issues: Whether the petitioner is entitled to further gratuity payment due to the revised ceiling limit under the Act.

Ratio Decidendi: The provision in the amended Act applies to all establishments and the petitioner is entitled to receive enhanced gratuity based on the new limit.

Result: Writ petition allowed and disposed.

Table of Content
1. petitioner's request for gratuity payment. (Para 1)
2. enhanced gratuity limit applicability. (Para 2)
3. entitlement to recalculated gratuity with interest. (Para 3)
4. writ petition allowed and disposed. (Para 4)

JUDGMENT

Arindam Lodh, J. - Heard Mr. P. Roy Barman, learned Sr. counsel assisted by Mr. K. Nath, learned counsel appearing for the petitioner. Also heard Mr. K. De, learned counsel appearing for the State-respondents and Mr. B. Shome Bhowmik, learned counsel appearing for the respondent Nos. 3 and 4.

1. By means of filing the present petition, the petitioner has prayed for the following reliefs:

'(i) Issue Rule upon the Respondents to show cause as to why a writ in the nature of Mandamus and/or order/orders and/or direction/directions of like nature shall not be issued whereby directing the Respondents to make full and final payment of Gratuity (Rs.3,55,365/-) with interest @ 9% p.a. to the petitioner, w.e.f. the date on which the gratuity becomes payable till the date of payment after adjusting lump sum amount of Rs.10,00,000/-.

(ii) Issue Rule upon the Respondents to show cause as to why a writ in the nature of Mandamus and/or order/orders and/or direction/directions of like nature shall not be issued whereby directing the Respondents to pay interest @ 9% p.a. on Rs.10,00,000/- w.e.f. 03.03.2021 till 09.04.2021.

(iii) Make the rules absolute.

(iv) Call for records.

(v) Pass any further order/orders as this Hon'ble High Court considered fit and proper.'

2. Having gone through the petition, counter affidavits and over all consideration of submissions of learned counsels appearing for the parties that though the petitioner retired from service on 31.01.2021, but, gratuity was paid to him considering the ceiling limit of Rs.10,00,000/-. Since the ceiling limit regarding gratuity was enhanced to Rs.20,00,000/-w.e.f. 29.03.2018 by the Act 12 of 2018, it will be applicable to all the establishments of the Central Government and the State Government. As such, the respondent-Corporation i.e. the Tripura Handloom and Handicrafts Development Corporation Ltd. is also covered by the said amended provision of the Payment of Gratuity Act, 1972.

3. In view of this, the petitioner will be entitled further sum of Rs.3,55,365/- (Rupees three lakh fifty five thousand three hundred sixty five) only on the enhanced rate of gratuity w.e.f. 01.03.2021. As such, it is directed to the respondent-Corporation to recalculate the gratuity of the petitioner keeping in mind the calculation made by the respondents and pay the said amount within a period of three months from today along with interest @ 7% per annum for such deferred payment.

4. With the aforesaid direction, the instant writ petition stands allowed and disposed.

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