Interest on delayed payment of gratuity
P K Kaushal
(Querist) 15 July 2013
This query is : Resolved
1 I retired from Powergrid corporation of India as General Manager on 30.04.2009
2 On day of my retirement, issued charge sheet for major penalty regarding violation of certain clauses of DOP while recommending a proposal for award. No loss to company quantified
3 Eight other executives who signed the same proposal also charge sheeted six months later with Disciplinary authority alleging violation of different and contradictory clauses in same case
4 CVC holds inquiry individually for all 9 executives and partially upholds charges
Me and all other officers protest and appeal against CVC judgement which had ignored many vital facts during the inquiry and similar cases prevailing in the company
5 After 4 years, leading to regular torture, mental harassment and agony and about 2 years of final inquiry report of CVC, company gives verdict of converting major penalty to Censure( minor penalty as per company work conduct and discipline rules and withheld gratuity released without payment of interest on delayed payment
6 I appeal against verdict request for exoneration and interest on delayed payment on gratuity which is released on 22.04.2013 whereas I had retired on 30.04.2009
No financial loss alleged or proved rather gain to the company can be proved and brought out during inquiry
In the expert legal opinion whether company should deny interest on delayed payment
Is the case not eligible for claiming damages for mental harassment humiliation and mental agony
niranjan
(Expert) 15 July 2013
You can file suit for claiming interest on delayed payment of gratuity.
Isaac Gabriel
(Expert) 16 July 2013
File a petition with the controlling Athority claiming interest for the delayed payment.You can get interest at 10 percent p/a for the belated disbursement of Gratuity.
Advocate Sastry
(Expert) 16 July 2013
Refer 7.3 A of Gratuity Act 1972 which read as under:
1[(3) The employer shall arrange to pay the amount of gratuity within thirty
days from the date it becomes payable to the person to whom the gratuity is
payable.
(3-A) If the amount of gratuity payable under sub-section (3) is not paid by
the employer within the period specified in sub-section (3) the employer shall
pay, from the date on which the gratuity becomes payable to the date on which it
is paid, simple interest at such rate, not exceeding the rate notified by the
Central Government from time to time for repayment of long term deposits, as
that Government may, by notification specify:
Provided that no such interest shall be payable if the delay in the payment is
due to the fault of the employee and the employer has obtained permission in
writing from the Controlling Authority for the delayed payment on this ground.
Please read the Act also
Rajendra K Goyal
(Expert) 16 July 2013
Agree with the experts, claim interest through Controlling Authority.
P K Kaushal
(Querist) 17 July 2013
Controlling officer does not care to reply
It means option is to file writ petition
Advocate Sastry
(Expert) 17 July 2013
Speak to controlling authority in person..
If it fails go ahead with writ petition with advice of a local advocate
Raj Kumar Makkad
(Expert) 17 July 2013
Sastry has rightly provided you the relevant rule position. If the relief is denied then issue legal notice followed by suit for recovery.
P K Kaushal
(Querist) 11 September 2013
I intend to file a writ in Delhi high court to claim interest on delayed payment of gratuity.
Any Delhi based advocate confident of favourable verdict and willing to file the claim on my behalf may contact 9717697099
R.K Nanda
(Expert) 11 September 2013
nothing to add more.