Case Law Details
Ashvinkumar Ramniklal Jani Vs State of Gujarat (Gujarat High Court)
Apex Court in the case of Gangahanume Gowda Vs. Karnataka Agro Industries Corporation Ltd. reported in (2003) 3 SCC 40 has decided the interest on delayed payment of gratuity. It is also held that the same is mandatory and not discretionary. When it is not the case of the respondent that the delay in the payment of gratuity was due to the fault of the employee and that it had obtained permission in writing from the controlling authority for the delayed payment on that ground, the respondent had been directed to pay interest on the amount of gratuity to which the appellant is entitled from the date it became payable till the date of payment of the gratuity amount.
The respondents are directed to pay to the petitioner the amount of gratuity of Rs.10 lakhs within a period of 10 weeks from the date of receipt of copy of this order. Since the petitioner superannuated on 14.06.2013 and the amount of gratuity has been wrongfully withheld by the respondents, the petitioner shall be entitled to interest at the rate of 9% from the date of his superannuation till the date of actual payment.
FULL TEXT OF THE JUDGMENT/ORDER OF GUJARAT HIGH COURT
1. By way of this petition under Article 226 of the Constitution of India, the petitioner has prayed for a declaration that the action of the respondents in not paying the entire amount of Rs.10 lakhs towards gratuity to the petitioner is arbitrary. Further direction is prayed that the respondents be directed to pay the remaining amount of gratuity to the petitioner along with 18% interest from the date of his retirement.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
