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
| 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.
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.
Delayed payment of gratuity under the Payment of Gratuity Act, 1972 incurs interest at 7% per annum, and statutory revisions to gratuity entitlements must be honored.
Entitlement to delayed gratuity payments includes the right to receive penal interest, reinforcing statutory obligations of payment by public authorities.
Employees are entitled to gratuity payments as per revised ceiling limits established by the Payment of Gratuity (Amendment) Act, 2018, regardless of employers' financial constraints.
The revised ceiling limit of gratuity under the Payment of Gratuity Act applies universally, entitling employees to claim benefits irrespective of their employer's governance.
The court held that under the Payment of Gratuity Act, retirees are entitled to full gratuity payments up to Rs.20,00,000 with interest of 7.5% due to untimely payments.
The central legal principle established is that gratuity, as a retirement benefit, must be determined and paid to eligible employees in a timely manner as mandated by The Payment of Gratuity Act, 197....
Employees of local bodies are entitled to gratuity based on the Payment of Gratuity Act, 1972, and not State pension rules.
The court affirmed the applicability of revised gratuity limits as per the Central Government notification and ruled that financial constraints do not exempt employers from timely payment of gratuity....
The revised gratuity ceiling of Rs.20,00,000 under the Payment of Gratuity Act applies to all establishments, regardless of whether controlled by State or Central Government.
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