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2022 Supreme(Tri) 254

HIGH COURT OF TRIPURA AGARTALA
Arindam Lodh, J.
Swadesh Deb & Anr. - Appellants
Versus
State of Tripura & Ors. - Respondents
WP(C) 511 of 2022
Decided On : 29-09-2022

Advocates appeared:
Mr.Samarjit Bhattacharjee, Advocate., for the Petitioner; Mr. K. De, Addl. G.A., Mr. K. C. Bhattacharjee, Advocate., for the Respondent

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.

Headnote:(A) Payment of Gratuity Act, 1972 - Payment of Gratuity (Amendment) Act, 2018 - Ceiling limit for gratuity payment raised to Rs.20,00,000/- - Petitioners, employees of Tripura Road Transport Corporation, claimed full payment of gratuity amount post-retirement, specifying entitlement under the Act. Court ruled entitlement is governed by amended ceiling, directing payment of balance gratuity with interest. (Paras 3, 4, 5, 7)

(B) Precedent - Court referred to earlier judgments to establish that ceiling limits should apply universally irrespective of controlling government body; financial constraints cannot indefinitely hinder disbursal of employee benefits. (Paras 5, 6, 9)

Facts of the case:
The petitioners worked for Tripura Road Transport Corporation, retired at superannuation, contending their gratuity was underpaid based on statutory limits under the Payment of Gratuity Act, 1972. Petitioners claimed the balance gratuity amount and interest. Respondents previously limited gratuity payment citing financial constraints.

Findings of Court:
The revised ceiling of Rs.20,00,000 is applicable, and payment must be made promptly with 6% interest on delayed payments. Respondents failed to demonstrate legal basis for delayed payment.

Issues: The key issue was the applicability of the revised ceiling limit on gratuity payments post-amendment and the entitlement of employees to the balance amount due.

Ratio Decidendi: Court found that employees are entitled to gratuity payments as per revised amendment limits regardless of financial reasoning by the employer. Delays in payment require interest compensation.

Result: Petition allowed; respondents directed to pay balance gratuity with interest.

Table of Content
1. relief sought in writ petition (Para 1 , 2)
2. employment details of petitioners (Para 3)
3. citations of relevant judgments (Para 4 , 5)
4. issues in gratuity payment highlighted (Para 6 , 7)

JUDGMENT

1. Heard Mr. Samarjit Bhattacharjee, learned counsel appearing for the petitioners. Also heard Mr. K. De, learned Addl. G.A. appearing for the State-respondents and Mr. K. C. Bhattacharjee, learned counsel appearing for the respondents-Tripura Road Transport Corporation.

2. By way of filing the present writ petition, the petitioners have prayed for the following reliefs:-

'Under the circumstances stated above, it is submitted, that the Hon'ble High Court would be kind enough to:-

(I) Issue rule upon the Respondents to show cause as to why 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 the full and final payment of Gratuity with interest @ 9% per annum on Rs.2,25,384/- to the petitioner no.1 w.e.f. 03.04.2022, till the date of payment.

(II) Issue rule upon the Respondents to show cause as to why 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 the full and final payment of Gratuity with interest @ 9% per annum on Rs.2,27,692/- to the petitioner no.2 w.e.f. 01.11.2021, till the date of actual payment.

(III Issue rule upon the Respondents to show cause as to why 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 the full and final payment of Gratuity with interest @ 9% per annum on Rs.10,00,000/- to the petitioner no.2 w.e.f. 01.11.2021 to 01.04.2022 i.e. upto the date on which 10,00,000/- was paid.

(IV) Make rules absolute.

(V) Call for records.

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

3. Briefly stated, the petitioners were the employees under the Tripura Road Transport Corporation (for short, TRTC), the respondent nos.3 and 4. Petitioner no.1 joined in the service on 03.03.1986 as a Bus Conductor. After attaining the age of superannuation the petitioner retired from service w.e.f. 28.02.2022. Petitioner no.2 joined in the service on 28.02.1986 as a Traffic Assistant and after attaining the age of superannuation, he retired from service w.e.f. 30.09.2021. It is the contention of the petitioners that after the retirement as per ceiling limit of Rs.20,00,000/-, the petitioner no.1 is entitled to Rs.12,62,146/- and the petitioner no.2 is entitled to Rs.12,64,523/- as gratuity. But, the respondents-TRTC have caused payment of Rs.10,00,000/- towards the petitioners as gratuity. The petitioners have prayed for payment of balance amount which they are entitled to along with 9% interest till the date of actual payment. It is further contended that the Govt. of India by Notification, dated, 29.03.2018 notified that the amount of gratuity payable to an employee under the Act shall not exceed Rs.20,00,000/-. Accordingly, the petitioners have urged that they are also entitled to gratuity at the enhanced rate i.e. Rs.20,00,000/- as per Payment of Gratuity (Amendment Act), 2018.

4. At the very outset, Mr. S. Bhattacharjee, learned counsel appearing for the petitioners submitted that this writ petition is well covered by the judgment of learned Single Judge dated 20.02.2020 in case of Lal Zakim Rokhum v. Tripura Road Transport Corporation & Anr. in WP(C) No.1209 of 2019. Respondents did not seriously oppose this proposition. The relevant portion of the said judgment of the learned Single Judge may be reproduced here-in-below:

'[4] The corporation contends that such revised ceiling for payment of gratuity would not be applicable to State Government Corporations unless the Government notifies such revised ceiling and permits the Corporation to pay the same. In this context respon

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