Back
ARINDAM LODH, S. G. CHATTOPADHYAY
Tripura Road Transport Corporation – Appellant
Versus
Lal Zakim Rokhum – Respondent
JUDGMENT
1. Heard Mr. D. Bhattacharjee, learned GA assisted by Mr. P. Saha, learned counsel appearing for the appellants-TRTC, the respondents in the writ petition. Also heard Mr. P. Roy Barman, learned senior counsel assisted by Mr. K. Nath, learned counsel appearing for the respondent, writ petitioner. For convenience, the parties are referred to here-in-below according to their original status in the writ petition.
2. The respondents-TRTC have preferred the present appeal challenging the legality and validity of the judgment and order dated 20.02.2020, wherein a learned Single Judge of this Court had passed an order directing the respondent-TRTC to release the gratuity payable to the writ-petitioner at the rate of Rs. 20,00,000/- along with simple interest at the rate of 7.5% per annum after completion of 1 (one) month from the date of retirement till actual payment.
3. Mr. Bhattacharjee, learned GA has submitted that the respondents-TRTC have paid gratuity to the writ-petitioner considering the ceiling limit at Rs. 10,00,000/-. During his argument, learned GA has relied upon Section 4 -A of the Payment of Gratuity Act, 1972.
4. We are at a loss to understand as to how Section 4 -
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.
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.
Central legislation on gratuity limits prevails over state rules. The state must align its rules with central amendments to avoid conflict and ensure uniformity in employee benefits.
State government employees are excluded from the Payment of Gratuity Act, and their gratuity entitlement is regulated by separate Pension Rules, confirming a ceiling limit of Rs. 4 lakh.
Employees of local bodies are entitled to gratuity based on the Payment of Gratuity Act, 1972, and not State pension rules.
An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers
Please visit our Training & Support
Center or Contact Us for assistance
Scan Me!
India’s Legal research and Law Firm App, Download now!
For Daily Legal Updates, Join us on :
Back to top
