HIGH COURT OF TRIPURA AGARTALA
Arindam Lodh, J.
Debasish Sengupta - Appellant
Versus
State of Tripura & Ors. - Respondents
WP(C) 558 of 2021
Decided On : 10-11-2022
| Table of Content |
|---|
| 1. details of petitioner's service and gratuity claim (Para 1 , 2 , 3) |
| 2. citing precedent for gratuity claims (Para 4) |
| 3. analysis of the payment of gratuity act, 1972 (Para 6 , 7 , 8 , 9 , 10 , 11) |
JUDGMENT
1. Heard Mr. S. Datta, learned counsel appearing for the petitioner. Also heard Mrs. S. Deb, learned counsel appearing for the State-respondents and Mr. P. Gautam, learned counsel appearing for the respondent nos. 2 to 5.
2. By way of filing the present writ petition, the petitioner has prayed for the following reliefs:-
'In the premises whereof it is humbly prayed that Your Lordship would graciously pleased to-
(i) Admit the petitioner;
(ii) Call for the records;
(iii) Issue Rule calling upon the Respondents to show cause as to why the petitioner shall not be allowed/released the arrears of Gratuity amount as entitled to under the Payment of Gratuity Act,1972 in terms of maximum ceiling to Rs.20.00 lakhs as came into force w.e.f. 29.03.2018 along with compound rate of interest @ 9% per annum in favour of the petitioner. '
3. Briefly stated, the petitioner was appointed in the post of Field Supervisor on 02.09.1991 by the Tripura Scheduled Tribe/Scheduled Caste (ST/SC) Co-operative Development Corporation Ltd., the respondent nos. 2 to 5 respectively. After attaining the age of superannuation, the petitioner retired from service w.e.f. 31.01.2021. It is the contention of the petitioner that after the retirement as per ceiling limit of Rs.20,00,000/- under the Payment of GratuityAct,1972 amended on 29.03.2018, the petitioner is entitled to Rs.11,49,404/- as full and final payment of gratuity. But, the respondent nos. 2 to 5 vide Memo dated 30.01.2021 [Annexure-1 to the writ petition] sanctioned and released the gratuity amount on computation of pre-revised ceiling limit i.e. subject to maximum Rs.10,00,000/-. The petitioner has prayed for payment of balance amount which he is 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 petitioner has urged that he is 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. Datta, learned counsel appearing for the petitioner has submitted that this writ petition is well covered by the judgment of learned Single Judge of this court dated 13.02.2020 in the case of Sri Bhupati Debnath v. The State of Tripura & two others. in WP(C) No.1054 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:
'5. The statement of objects and reasons for enactment of the Payment of Gratuity Act, 1972 (the Act, for short) reads as under:
'STATEMENT OF OBJECTS AND REASONS:
There is at present no Central Act to regulate the payment of gratuity to industrial workers, except the Working Journalists (Conditions of Service) and Miscellaneous Provisions Act. 1995. The Government of Kerala enacted legislation last year for payment of gratuity to workers employed in factories, plantations, shops and establishments. The West Bengal Governor Promulgated an Ordinance on the 3rd June, 1971 prescribing a similar scheme of gratuity. This Ordinance has since been replaced by the West Bengal Employees' Payment of Compulsory Gratuity Act, 1971, enacted by the President on 28th August, 1971. Gratuity is also being paid by some employers to their workers under Awards and Agreements.
Since the enactment of the Kerala and the West Bengal Acts, some other State Governments have also voiced their intention of enacting similar measures in their respective States. It has become necessary, therefore, to have a Central law on the subject so as to ensure a uniform pattern of payment of gratuity to the employees t
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 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 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....
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.
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 Payment of Gratuity Act, 1972 overrides other rules, ensuring employees receive most favorable Gratuity benefits.
Employees of local bodies are entitled to gratuity based on the Payment of Gratuity Act, 1972, and not State pension rules.
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