AI Overview...
-
Set-Off of Amounts - The court confirmed that a company can adjust refunds, such as amounts payable for refunds of EMD and security deposits, against its contractual sale consideration or other payables. This principle aligns with the right of a debtor to set off smaller claims against larger liabilities, especially in insolvency or contractual contexts. NIZAMUDEEN A. vs STATE OF KERALA - Kerala, Bharti Airtel Limited VS Vijay kumar V. Iyer - Supreme Court
-
Gratuity Adjustment - Courts and tribunals have upheld the company's right to adjust gratuity amounts payable to employees against dues or liabilities owed by the company. Statutory provisions under the Payment of Gratuity Act, 1972, support this, provided no statutory or contractual prohibition exists. The amount payable as gratuity remains due despite outstanding claims, and courts have reaffirmed that gratuity cannot be withheld unilaterally. CLARIS LIMITED vs DISTRICT COLLECTOR AHMEDABAD & ORS. - Gujarat, Association of Engineering Workers vs Jayesh Natvarlal Sanghrajka, RP of Nirmal Lifestyle Realty Private Limited - National Company Law Tribunal
-
Statutory and Contractual Rights - Employees and beneficiaries retain the right to receive gratuity, and such amounts can be adjusted against other dues, provided statutory requirements are met. The courts emphasize that gratuity payments are protected and cannot be withheld arbitrarily, reinforcing the company's ability to set off or adjust these amounts against other liabilities. Vijay Shankar Tripathi VS State of U. P. - Allahabad, CLARIS LIMITED vs DISTRICT COLLECTOR AHMEDABAD & ORS. - Gujarat
-
Miscellaneous Adjustments - The company can also claim deductions under applicable sections (e.g., Section 43B) for expenses like sales tax recoverables, and adjustments related to unutilized credits (MODVAT). These adjustments are subject to proper documentation and statutory compliance. Maruti Suzuki India Ltd. (Earlier Known As Maruti Udyog Ltd. ) VS Commissioner of Income Tax, Delhi - Supreme Court
Analysis and Conclusion:
Based on the sources, a company has the legal right to set off or adjust gratuity amounts payable to employees against its contractual or statutory liabilities, including refunds, security deposits, or other dues. Courts have consistently upheld this principle, provided such adjustments comply with statutory provisions and contractual obligations. Therefore, companies can legitimately offset gratuity payments against their contractual payables, ensuring statutory compliance and safeguarding employee rights.
Search Results for "Company can Set Off or Adjust the Gratuity Amount against his Contractual Payables"
2025 Supreme(Online)(Ker) 44635 • India - IN THE HIGH COURT OF KERALA AT ERNAKULAM
N. NAGARESH, J
The court held the petitioner entitled to adjust refunds against sale amounts, reiterating past directives and financial obligations ... It addresses the alleged violation of court orders by directing Travancore Cements Ltd. to refund a substantial amount. ... In the circumstances of the case, the petitioner is entitled to set off the amounts payable to him by the Company towards refund of EMD and security deposit against the sale consideration. ... ....
2024 1 Supreme 152 • India - Supreme Court
SANJIV KHANNA, S. V. N. BHATTI
right of a debtor to adjust smaller claim owed to him against larger claim payable to his creditor – In economic terms, set-off ... Contention that the “amount” to be set-off is not part of the corporate debtor’s assets in the present facts is misconceived and ... between parties – Natural equity requires that cross-demands should compensate each other by deducting lesser sum from greater – Contractual ... Rory Derham observes that the insolvency #HL....
1968 0 Supreme(SC) 217 • India - Supreme Court
C.A.VAIDIALINGAM, J.M.SHELAT
amount and amounts of development rebate and of provision for gratuity in light of this judgment Tribunal will adjust its award ... to employees is right - In result, appellant Company succeeds on questions of development rebate and provision for gratuity amount ... computing the net wealth - whether such estimated liability arising under the gratuity schemes amounts to a debt or not - whether ... will adjust its a....
• India - Supreme Court
MADAN B.LOKUR, S.ABDUL NAZEER, DEEPAK GUPTA
compensation – The word "just" – Of a very wide amplitude – Well settled that tortfeasor cannot not take benefit of the munificence or gratuity ... Court: ... Tortfeasor cannot not take benefit of the munificence or gratuity ... 15% awarded by MACT disallowed – Rs.50,00,000 awarded as compensation applying multiplier of 11 – Insurer allowed to deduct the amount ... On this amount, the claimants shall be entitled to interest @ of 9% per annum from the date of filing of the petition till the payment of the amount....
2025 Supreme(Online)(Guj) 8098 • India - IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
A.S. SUPEHIA, R. T. VACHHANI, JJ
The court reaffirmed that without a challenge to a prior order, statutory dues for gratuity remain payable despite outstanding claims ... made to the controlling authority's order, which quantified the employee's gratuity. ... (A) Payment of Gratuity Act, 1972 - Sections 13 and 14 - The court considered whether gratuity payments to an employee can be withheld ... the said amount of gratuity against the dues of the respondent no. 2. ... Protection of Gratuity: - No #HL....
1971 0 Supreme(Bom) 169 • India - Bombay
Y.V.CHANDRACHUD, MALVANKAR
The amount paid by way of engineers' commission was not a legitimate item of expenditure as it was paid without any contractual obligation ... The Tribunal will now re-adjust its calculations so as to conform to the judgment. ... The company was entitled to claim interest on reserves used as working capital to the extent of Rs. 3,65,697 only. ... The contention of the petitioners is that the amount was paid by the company without any contractual obligation, that a fe....
2024 Supreme(Online)(NCLT) 5521 • India - National Company Law Tribunal
SHRI CHARANJEET SINGH GULATI, T, SMT LAKSHMI GURUNG, J
(A) Insolvency and Bankruptcy Code, 2016 - Section 60(5), Section 30(2) - Payment of Gratuity Act, 1972 - Claim for gratuity and ... (Paras 24.1, 24.4, 49) ... ... (B) Corporate Debtor's failure to establish a Gratuity Fund for employees means ... (Paras 44, 49) ... ... (C) Supreme Court’s decision on gratuity entitlement reasserted provisions ... However, this interest amount is neither supported with any document nor the court order grants the same. In absence of any contractual right to interest ....
2014 0 Supreme(Guj) 895 • India - Gujarat
AKIL KURESHI, VIPUL M.PANCHOLI
of Rs.6,56,460/-, the family also received a sum of Rs.5,75,177/- which was the amount received from all employees of the Company ... The contention of the insurance company is that the amount received under the personal accident policy as well as that contributed ... The appeal of the insurance company, therefore, shall have to be dismissed. Appeals allowed. ... The amount under this Act, he receives without any contribution. As we have said the compensation payable....
2021 0 Supreme(All) 401 • India - Allahabad
J. J. MUNIR
to the petitioner reserves the petitioner's right to receive both pension and gratuity. ... It is, thus, not a case, where the petitioner is pleading or asserting a contractual right that conflicts with a statute, a statutory ... rule or a non-statutory regulation, governing post retiral benefits, admissible to employees of the Company - He is asserting his ... and gratuity, no other benefits would be payable for the former period of employment. ... It is, thus, not a case, where the petitioner is plea....
2020 0 Supreme(SC) 121 • India - Supreme Court
ASHOK BHUSHAN, NAVIN SINHA
Similarly, the Company claimed deduction under Section 43B of an amount of Rs. 3,08,88,171/- in respect of Sales Tax Recoverable ... At the end of the Assessment year 1999-2000 an amount of Rs. 69,93,00,428/- was left as unutilised MODVAT credit. ... In the return it was claimed that the Company was eligible for deduction under Section 43B of the a href ... At the end of the Assessment year 1999-2000 an amount of Rs. 69,93,00,428/- was left as unutilised MODVAT credit. In the return it was claimed that ....
Filter by Legal Phrase
