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
| 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
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.
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.
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....
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.
The Payment of Gratuity Act, 1972 overrides other rules, ensuring employees receive most favorable Gratuity benefits.
Payment of gratuity capped by statutory limits cannot be overridden by administrative directives; interest claims on delayed payments are unsupported when full settlement acknowledged.
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