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ARINDAM LODH
Samir Kumar Ghosh – Appellant
Versus
State of Tripura – Respondent
JUDGMENT
Arindam Lodh, J. - Heard Mr. P. Roy Barman, learned senior counsel assisted by Mr. S. Bhattacharjee, learned counsel appearing for the petitioner. Also heard Mr. D. Sarma, learned Additional GA appearing for the respondents-State and Mr. A. Bhaumik, learned counsel appearing for the respondents-Agartala Municipal Corporation (for short 'AMC').
2. The grievance of the petitioner is that in pursuance of a judgment passed by a Division Bench of this Court, he was paid gratuity to the ceiling limit of Rs. 10 lakh in terms of The Payment of Gratuity Act, 1972. On computation, the respondents-AMC paid him Rs. 7,18,608/-, but, the petitioner has filed the present writ petition raising his grievance that his entire length of service has not been considered in quantifying his gratuity.
3. Learned senior counsel appearing for the petitioner has submitted that the petitioner had rendered 40 years of service with the AMC. He joined his service on 01.01.1976 and retired on 31.12.2015. According to the petitioner, he is entitled to gratuity amount of Rs. 10 lakh, if his total length of service i.e. 40 years is calculated for determining the total amount of gratuity.
4. Mr. Bhaumik, learned
Employees of local bodies are entitled to gratuity based on the Payment of Gratuity Act, 1972, and not State pension rules.
Employees of corporations and local bodies are entitled to gratuity under the Payment of Gratuity Act, 1972, and not under state government pension rules.
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.
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 amendment of the Payment of Gratuity Act to increase the ceiling limit entitles retired employees to receive additional gratuity payments under the updated provisions.
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 revised ceiling limit of gratuity under the Payment of Gratuity Act applies universally, entitling employees to claim benefits irrespective of their employer's governance.
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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