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2022 Supreme(Tri) 217

HIGH COURT OF TRIPURA AGARTALA
Arindam Lodh, J.
Kirit Bhattacharjee - Appellant
Versus
State of Tripura & Ors. - Respondents
WP(C) 564 of 2022
Decided On : 08-11-2022

Advocates appeared:
Ms.A. Debbarma, Advocate., for the Petitioner; Mr. R. Saha, Mr. B.S. Bhowmik, Advocates., for the Respondent

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.

Headnote:(A) Payment of Gratuity Act, 1972 - Section 4 - Ceiling limit for gratuity payment - The petitioner, an employee of the Tripura Handloom & Handicrafts Development Corporation, retired with a claimed gratuity of Rs.21,87,923/- but only received Rs.10,00,000/- - Court found the revised ceiling of Rs.20,00,000/- applicable to petitioner based on amendment by the Central Government - Court directed full payment of gratuity according to the revised ceiling along with interest. (Paras 3, 10, 11)

(B) Writ Jurisdiction - Scope and powers - Court affirmed similar disposition as in prior judgment, thus establishing the applicability of the revised gratuity limits under the Act to all establishments regardless of their governance by State or Central authorities. (Paras 6, 7)

Facts of the case:
The petitioner retired from service and claimed gratuity exceeding the amount provided by his employer, citing statutory amendments and previous judicial decisions supporting his claim.

Findings of Court:
The Court ruled that the petitioner was entitled to the updated gratuity amount of Rs.20,00,000/- along with interest within three months.

Issues: Whether the revised gratuity ceiling applies to the petitioner and his entitlement to the balance amount.

Ratio Decidendi: The Court held that the new ceiling applied universally, directing the respondents to comply with the revised limit as established under the Payment of Gratuity (Amendment Act), 2018.

Result: Writ petition allowed.

Table of Content
1. gratuity payment ceilings under law. (Para 3 , 8 , 9 , 10 , 11)
2. cites previous ruling supporting gratuity claim. (Para 4)
3. petition granted based on prior judgment. (Para 6)

JUDGMENT

1. Heard Ms. A. Debbarma, learned counsel appearing for the petitioner. Also heard Mr. R. Saha, learned counsel appearing for the State-respondents and Mr. B.S.Bhowmik, learned counsel appearing for the respondents-Tripura Handloom and Handicrafts Development Corporation Ltd.

2. By way of filing the present writ petition, the petitioner has 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 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 the full and final payment of Gratuity (Rs.10,00,000/-) with interest @ 9% per annum to the petitioner, w.e.f. the date of payment after adjusting lump sum amount of Rs.10,00,000/-.

(II) Make rules absolute.

(III) Call for records.

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

3. Briefly stated, the petitioner was an employee under the Tripura Handloom & Handicrafts Development Corporation (for short, THHDC) Ltd, the respondent nos.3 and 4 respectively. Petitioner joined in the service on 01.08.1983 as a Supervisor (Handloom). After attaining the age of superannuation, the petitioner retired from service w.e.f. 31.12.2021. It is the contention of the petitioner that after the retirement as per ceiling limit of Rs.20,00,000/-, the petitioner is entitled to Rs.21,87,923/- as full and final payment of gratuity, but, the respondents-THHDC Ltd. have caused payment of Rs.10,00,000/- towards the petitioner as gratuity. 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, Ms. A. Debbarma, learned counsel appearing for the petitioner has submitted that this writ petition is well covered by the judgment of learned Single Judge dated 13.02.2020 in 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 empl

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