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ARINDAM LODH
Swadesh Deb – Appellant
Versus
State of Tripura – Respondent
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
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 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.
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....
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.
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.
Employees of corporations and local bodies are entitled to gratuity under the Payment of Gratuity Act, 1972, and not under state government pension rules.
Employees of local bodies are entitled to gratuity based on the Payment of Gratuity Act, 1972, and not State pension rules.
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.
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