Interest on Delayed Gratuity Payment is Mandatory & Not Discretionary

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 payme

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