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W. DIENGDOH
Tikendra Singh – Appellant
Versus
State of Meghalaya – Respondent
JUDGMENT
W. Diengdoh, J. - This is an application under Article 226 of the Constitution of India with a prayer for necessary directions to the respondent authorities to pay interest on delayed payment of gratuity which was received by the petitioners and/or their legal heirs.
2. Mr. A. Khan, learned counsel for the petitioners has submitted that the petitioners No. 1 to 79 are retired employees and the petitioners No. 80 to 95 are the legal heirs of some of the deceased employees of the respondent No. 2/MECOFED.
3. According to the learned counsel, the background fact situation of the case is that the Government of Meghalaya has formulated a scheme called the 'Voluntary Retirement Scheme/Golden Handshake Scheme' for the employees of the MECOFED which was duly accepted by the petitioners herein.
4. It is also submitted that the petitioners then claimed for gratuity and leave encashment which was denied to them. Being aggrieved, the petitioners then filed two writ petitions, being WP(C) No. 320(SH) of 2010 for grant of leave encashment and WP(C) [SH] No. 154 of 2012 for payment of gratuity under the Payment of Gratuity Act, 1972.
5. The Hon'ble Gauhati High Court (Shillong Bench) [as this
The court established that compliance with statutory timelines for gratuity payments negates entitlement to interest on delayed payments when no timely claims are made.
The main legal point established in the judgment is the statutory entitlement of an employee to interest on delayed payment of gratuity as per the provisions of the Payment of Gratuity Act, 1972.
The right to interest on delayed gratuity payments is statutory and mandatory under Section 7(3-A) of the Payment of Gratuity Act, 1972.
The right to interest on delayed gratuity payments is statutory and mandatory under Section 7(3-A) of the Payment of Gratuity Act, 1972.
The main legal point established is that MECOFED is liable to provide gratuity to its employees under the Payment of Gratuity Act, 1972, and the principle of delay and laches can bar employees' entit....
Interest under the Payment of Gratuity Act is due from the date of entitlement unless hindered by claim delays, resulting in dismissal of a petition for earlier interest claims.
The mandatory obligation of employers to pay gratuity within the specified timeframe includes the responsibility to pay interest on delayed payments, as established by the Payment of Gratuity Act.
Employees' rightful entitlement to salaries and pensions, and the need for equitable considerations in cases of deferred payments.
Interpreting Act unequivocally indicate that payment of gratuity would not depend upon employee filing an application before employer demanding gratuity but will have to be paid immediately on cessat....
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