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2026 LLR WEB 879 (KOLKATA HIGH COURT)
Section 7(3A) of the Payment of Gratuity Act confers no discretion on the controlling authority to refuse interest on delayed gratuity payment.
GRATUITY - Delayed payment - Interest - Mandatory nature - Section 7(3A) of the Payment of Gratuity Act, 1972 - S.O. 874(E) - The petitioner, a superannuated employee of FCI, was paid gratuity after a delay of over two years; the controlling authority refused to grant interest on the delayed payment - Petitioner sought interest at 10% per annum relying on an earlier judgment of this Court in WPA 7603 of 2025, affirmed by the Division Bench in MAT 1286 of 2025, which had held that Section 7(3A) leaves no discretion with the controlling authority to refuse interest... subscribe to read more..
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