Authority Cannot Deny Interest On Delayed Gratuity: High Court

A writ application was filed to release interest @ 10% per annum for delayed payment of the gratuity amount from the date of retirement of the petitioner till the date of actual payment of gratuity amount i.e. on and from 01.12.2018 to 04.10.2023.

The petitioner was appointed as a Causal Labour through a Contractor in Food Corporation of India, Food Storage Depot, Bikna, District-Bankura and was serving the Food Corporation of India (hereinafter referred to as FCI) since 1989 onwards and retired from service on attaining the age of 60 years on 30.11.2018.

The petitioner along with 58 others moved a writ petition (W.P. No. 1491(W) of 1997) praying for benefits and status of pay as a class IV employee of the FCI wherein the Court on 23.06.1998 directed the Food Corporation of India authorities including the then District Magistrate, Bankura to pay wages to the writ petitioners including increments and other allowances at per with the wages as of the Class-IV staff of the Food Corporation of India. Two appeals were preferred, one by the FCI and the other by the petitioners in the writ petition against the said order, wherein the division bench upheld the order of the single bench.

The petitioner retired on superannuation on 30.11.2018 and was paid provident fund dues but not the gratuity to which he claims he was entitled.

Court Order

The FCI/Respondent shall pay interest at the statutory rate on and from 01.12.2018 to 04.10.2023 within 30 days from the date of communication of this order failing which, the FCI/Respondent shall be liable to pay further interest on the interest awarded @ 18% per annum till payment.

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