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Case Law Details

Case Name : Vandana Vidhut Limited, Vs Appellate Authority under the Payment of Gratuity Act, (Chhattisgarh High Court)
Related Assessment Year :
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Payment of interest on amount of gratuity is statutory compulsion under Payment of Gratuity Act.

Keeping in view the statutory provisions contained in sub-section (3A) of Section 7 of the Act of 1972 and applying the law laid-down by their Lordships of the Supreme Court in the matter of H. Gangahanume Gowda (supra), I do not have any slightest hesitation in my mind to hold that failure of the petitioner to make payment of amount of gratuity within 30 days from the date it becomes payable to th

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6 Comments

  1. Raj Kumar Verma says:

    I was retired on 31/01/2017 on superannuation but my gratuity and leave encashment was withheld due to disciplinary action. Now the case was decided on 15/02/2021 the disciplinary authority imposed a penalty of Rs. 5000/- and treated my suspension period on duty.
    Please enlighten me whether I am entitle to receive interest on delayed payment of gratuity as the amount of gratuity not yet paid by the employer.

  2. OP Tailor says:

    Once gratuity is released and delayed due to procedure compliance should not be taken as fault of employee. The case is free from circumstances of Gratuity forfeiture hence interest on delay should be payable. I request legal expert to kindly see and put legality on the above views, if eligible. Regards.

  3. Varaprasad Daitha says:

    My friend retired on 3-6-2007 and his gratuity was withheld for the reason of pending disciplinary action. It was finalised in March this year and levied a token penalty of cut in pension at 10% for two years. However gratuity is allowed to be drawn in full since there were no other dues to be recovered.
    Please enlighten me whether he would be entitled to receive interest on such with held gratuity?

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