Dr.Mohd.Hamed Ali vs The M.D.,A.P.Dairy Development Hyd.
2025 Latest Caselaw 3264 Tel

Telangana High Court

Dr.Mohd.Hamed Ali vs The M.D.,A.P.Dairy Development Hyd. on 20 March, 2025

Author: P. Sree Sudha

Bench: P. Sree Sudha

           THE HONOURABLE SMT JUSTICE P. SREE SUDHA

                    WRIT PETITION No.5113 OF 2004

ORDER:

This writ petition is filed claiming interest @ 18% on gratuity

from the date of retirement, till the date it is paid to the writ petitioner.

2. In a counter affidavit filed by the respondent, it is stated that as

they already released payment of Rs.9,360/- and paid the amount to

the petitioner on 25.02.2004. They sought for amendment and claimed

interest on the delayed payment of the gratuity. But the delay was not

intentional. Deputy Director was charge sheeted on 20.09.1999 for

misconduct for shortage of molasses and irregular purchase of

veternary medicine. He gave explanation on 19.02.2000. Enquiry was

conducted. After submission of report, on 24.07.2001, the charges

against him were dropped. But it was held to recover an amount of

Rs.9,360/- towards loss sustained by the management and the said

amount was withheld. He retired from service on 30.11.1999. Gratuity

amount of Rs.2,40,000/- was paid on 12.02.2004 and Rs.9,360/- was

paid on 25.02.2004.

3. Learned counsel for the petitioner relied upon the judgment of

the Hon'ble Supreme Court in D.D.Tewari (Dead) Through Legal

Representatives v. Uttar Haryana Bijli Vitran Nigam Limited And

Others 1 wherein it is held as follows;-

(2014) 8 SCC 894 "Pension and gratuity are not a bounty to be distributed by Government to its employees on their retirement, but are valuable rights and property in its hands, and any culpable delay in settlement and disbursement thereof is to be visited with penalty of payment of interest.

Denial of interest from date of entitlement till date of payment has resulted in miscarriage of justice. Hence, interest @ 9% on delayed payment awarded to be paid within 6 weeks failing which interest @ 18% p.a. would need to be paid".

4. Learned counsel for the petitioner has also relied upon the

another citation of the Hon'ble Supreme Court in AIR 1983 SC 1134,

AIR 1985 SC 356, which is held as follows:-

"The employer is liable to pay interest on delayed payment of pension/gratuity. As stated above, the payment of gratuity belatedly is directly attributable to the respondent and the respondent has withheld the gratuity amount of the petitioner for which he is entitled in law, since his retirement the respondent is duty bound to pay interest on gratuity from the date of petitioner's retirement till the date of payment".

5. As it was clearly laid down by the Hon'ble Apex Court, the writ

petitioner is entitled for interest on the delayed payment. This Court

finds that it is just and reasonable to grant interest @ 7.5% from

30.11.1999 to 10.02.2004.

6. Accordingly, this writ petition is allowed. No costs.

7. Miscellaneous applications, pending if any, shall stand closed.

_________________________ JUSTICE P. SREE SUDHA

Date: 20.03.2025 pss