Bombay High Court Directs Zilla Parishad to Pay Retired Employee Gratuity and Commutation Amount with Interest for Delayed Payment. Non-payment of retiral benefits after superannuation violates Article 300A of the Constitution and Maharashtra Zilla Parishads and Panchayat Samitis Act, 1961.

High Court: Bombay High Court Bench: AURANGABAD In Favour of Accused
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Case Note & Summary

The petitioner, Motilal s/o Babulal More, retired from the services of the Zilla Parishad, Nandurbar on 31st May 2013 upon attaining the age of superannuation. He was paid pension and other pensionary benefits, but the gratuity amount of Rs.3,65,310 and the commutation amount of Rs.4,44,802 were not paid to him. After waiting for more than six months, the petitioner filed a writ petition before the Bombay High Court, Aurangabad Bench, seeking payment of these amounts with interest. The respondents, the Zilla Parishad and the State of Maharashtra, did not file any reply or contest the petition. The court, after hearing the counsel for the petitioner and the respondents, observed that the non-payment of gratuity and commutation amount without any authority of law violated the petitioner's right to property under Article 300A of the Constitution. The court directed the respondents to pay the gratuity amount of Rs.3,65,310 and the commutation amount of Rs.4,44,802 to the petitioner within four weeks, along with interest at 6% per annum from the date of retirement (31st May 2013) until the date of actual payment. The court also granted liberty to the petitioner to file a separate proceeding for recovery of any other amounts due. The writ petition was disposed of with these directions.

Headnote

A) Constitutional Law - Right to Property - Article 300A of the Constitution of India - Gratuity and Commutation Amount - The petitioner retired on 31st May 2013 and was paid pension and other benefits but gratuity of Rs.3,65,310 and commutation amount of Rs.4,44,802 were withheld without any reason. The court held that gratuity and commutation amount are property within the meaning of Article 300A and cannot be withheld without authority of law. The respondents were directed to pay the amounts with interest at 6% per annum from the date of retirement till payment. (Paras 1-5)

B) Service Law - Retiral Benefits - Delay in Payment - Interest - The court observed that the respondents failed to pay the retiral benefits within a reasonable time after retirement. The petitioner had to wait for more than six months and then file a writ petition. The court directed payment of interest at 6% per annum on the delayed amounts from the date of retirement till actual payment. (Paras 2-5)

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Issue of Consideration

Whether the petitioner is entitled to gratuity and commutation amount along with interest for the delayed payment after his retirement.

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Final Decision

The court directed the respondents to pay the gratuity amount of Rs.3,65,310 and commutation amount of Rs.4,44,802 to the petitioner within four weeks, along with interest at 6% per annum from the date of retirement (31st May 2013) until the date of actual payment. The petitioner is at liberty to file separate proceedings for recovery of any other amounts due. The writ petition was disposed of.

Law Points

  • Right to property under Article 300A
  • gratuity as property
  • delayed payment of retiral benefits
  • interest on delayed payment
  • Maharashtra Zilla Parishads and Panchayat Samitis Act
  • 1961
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Case Details

2015 LawText (BOM) (09) 13

Writ Petition No.4655 of 2014

2015-09-15

S.S. Shinde, P.R. Bora

Ajay S. Deshpande for Petitioner; P.S. Patil for Respondent No.1; S.K. Kadam, AGP for Respondent No.2

Motilal s/o Babulal More

The Zilla Parishad, Through its Chief Executive Officer; The State of Maharashtra Through the Secretary, Rural Development & Water Conservation Department

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Nature of Litigation

Writ petition seeking payment of gratuity and commutation amount with interest after retirement.

Remedy Sought

Petitioner sought direction to respondents to pay gratuity of Rs.3,65,310 and commutation amount of Rs.4,44,802 with interest.

Filing Reason

Non-payment of gratuity and commutation amount despite retirement on 31st May 2013 and waiting for more than six months.

Issues

Whether the petitioner is entitled to gratuity and commutation amount along with interest for the delayed payment after his retirement.

Submissions/Arguments

Petitioner submitted that he retired on 31st May 2013 and was paid pension and other benefits except gratuity and commutation amount. Respondents did not file any reply or contest the petition.

Ratio Decidendi

Gratuity and commutation amount are property within the meaning of Article 300A of the Constitution and cannot be withheld without authority of law. Delayed payment of retiral benefits entitles the employee to interest.

Judgment Excerpts

It is the case of the petitioner that on 31st May, 2013, he stood retired from services on attaining the age of superannuation. The petitioner has been already paid pension and pensionary benefits save and except Gratuity of Rs.3,65,310 and commutation amount of Rs.4,44,802. In the facts of the present case, we are of the opinion that the respondents be directed to pay the amount of gratuity and commutation amount to the petitioner with interest at the rate of 6% per annum from the date of retirement till the payment is made.

Procedural History

Petitioner retired on 31st May 2013. After waiting more than six months, he filed Writ Petition No.4655 of 2014 before the Bombay High Court, Aurangabad Bench. The petition was heard on 15th September 2015 and disposed of with directions.

Acts & Sections

  • Constitution of India: Article 300A
  • Maharashtra Zilla Parishads and Panchayat Samitis Act, 1961:
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