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Judgment
Affidavits of service filed in Court are taken on record.
The instant writ petition has been filed, inter alia, praying for a direction upon the respondents for disbursal of interest on account of delayed payment of gratuity.
The petitioners had previously approached this Court in WPA 11727 of 2020, alleging non-disbursal of gratuity payable to her husband who retired from service on 28th February, 2019.
According to the petitioner, despite the aforesaid, the gratuity was not disbursed during his life time.
Records would reveal, when the matter came up for consideration before the Coordinate Bench of this Court, it was submitted by the learned advocate for the municipality that due to lack of funds, the gratuity payable to the petitioner could not be released. In the peculiar facts, this Court by an order dated 2nd September, 2021 had directed the Secretary of Department of the Urban Development and Municipal Affairs should ensure that the families of such employees who retired from Bhatpara Municipality are not maltreated and exploited and necessary funds be released by the Government.
Further noting that the municipality has already approached this Government for release of funds, this Court had directed that the dues payable to the petitioner’s deceased husband should be released in accordance with law within a period of twelve weeks from the date of communication of this order.
According to the petitioners, since the municipality despite making payment of gratuity did not make payment of interest on account of delayed payment, the petitioners had approached this Court by filing a contempt petition, being CPAN 856 of 2021. The said petition came to be disposed of by an order dated 8th June, 2023, reserving liberty in favour of the petitioner to claim interest on gratuity in accordance with law. Pursuant to the aforesaid direction, the petitioner has filed the instant writ petition.
Having heard the learned advocates appearing for the respective parties and though the learned advocate for the municipality would submit that he is yet to receive instruction, I am of the view, in the peculiar facts, the municipality cannot deny interest on delayed payment of gratuity. This apart, in terms of the statutory provision contained in the Payment of Gratuity Act, 1972 (hereinafter referred to as the “said Act”) and Rules framed thereunder, a retired employee is ordinarily entitled to gratuity immediately on retirement. In the instant case, since the payment was delayed by more than five years, I am of the view that the petitioner should be entitled at least to some interest.
Accordingly, the writ petition is disposed of by directing the municipality to make payment of simple interest on account of delayed payment of gratuity at the rate of 8 per cent per annum by computing such interest from the date when the same became payable in terms of the said Act, till such time the same was actually paid, within a period of eight weeks from the date of communication of this order.
The municipality should make over a statement showing computation of interest while disbursing the same in favour of the petitioner.
With the above observations and directions, the writ petition is disposed of.
Urgent photostat certified copy of this order, if applied for be given to the parties upon compliance with the requisite formalities.