Case Law Details
K. Rajendra Prasad Vs State of Kerala (Kerala High Court)
Kerala High Court held that gratuity payable under the said Act has to be determined with respect to the date on which the gratuity became payable and not on the date on which sanction was accorded for payment of DCRG.
Facts- The petitioner retired as Regional Engineer from the Kerala State Housing Board. Aggrieved by the withholding of DCRG, the petitioner approached this Court and this Court, directed the Board to disburse the DCRG withheld, together with the salary for the month of May 2002 within a period of one month from the date of receipt of the judgment.
According to the petitioner, the DCRG was determined and disbursed to him as per the ‘then existing rule’ and in view of the amendment introduced to section 4(3) of the Payment of Gratuity Act, 1972 by Act 15 of 2010 with effect from 17.05.2010, he is entitled to the maximum gratuity of Rs.10,00,000/- (Ten lakhs). Therefore, the petitioner has filed this writ petition for direction to the respondents to disburse the DCRG as provided under section 4(3) of the Payment of Gratuity Act, 1972, amended by Act 15 of 2010 and for 9% interest for 9 years and 11 months on the amount of gratuity.
Conclusion- The gratuity payable to an employee shall not exceed the maximum that is notified under the respective enactments as on the date on which the gratuity becomes payable. Even if it is assumed that the petitioner’s claim for gratuity was under the Payment of Gratuity Act, 1972, the maximum amount of gratuity payable under the said Act has to be determined with respect to the date on which the gratuity became payable and not on the date on which sanction was accorded for payment of DCRG or the date on which the amount was actually disbursed to him. Therefore, there is no merit in the contention of the petitioner that he is entitled to the maximum gratuity of Rs.10,00,000/- as per section 4(3) of the Payment of Gratuity Act, 1972, as amended by Act 15 of 2010.
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