Disposed¶20

Dr. Vijaykumar Shivdayal Agrawal through Poa Amitkumar v. Agrawal v the General Manager, Central Railway and Anr.

Bombay HC16 Jan 2025WP/7186/2024

Case brief

AI extract

What is this about?

Delayed payment of gratuity; interest on gratuity; interest on accrued interest; Central Railway; superannuation May 2011; gratuity Rs.10,00,000/- paid 13 June 2018; interest calculation dated 30 January 2025 (Pradeep Kumar, ADFM/II/BB); interest Rs.2,45,138/- on Rs.5,05,961/-; total Rs.7,51,099/- payable within four weeks; writ petition disposed; no costs; Bombay High Court; WRIT PETITION NO. 7186 OF 2024; decision dated 3 February 2025.

What did the court decide?

Payment to the petitioner of Rs.7,51,099/- (interest on the delayed gratuity and interest thereon, up to 31 January 2025) within four weeks; petition disposed in those terms with no costs. ¶20

Dr. Vijaykumar Shivdayal Agrawal through Poa Amitkumar v Agrawal vs the General Manager, Central Railway and Anr. — Bombay HC (2025) — LawSathi Research

What the court decided

AI extract

Outcome

Payment to the petitioner of Rs.7,51,099/- (interest on the delayed gratuity and interest thereon, up to 31 January 2025) within four weeks; petition disposed in those terms with no costs.

¶20

Issue for consideration

Whether the petitioner is entitled to interest on the delayed payment of gratuity (paid on 13 June 2018 after superannuation in May 2011), not only up to the date of receipt of the gratuity amount, but also interest for the period on the accrued interest amount till receipt of the interest amount.

¶12

Court's answer

Interest on delayed payment of gratuity is required to be paid to the petitioner, not only as on 13 June 2018 (date of receipt of the gratuity amount), but also interest for the period on the accrued interest amount till receipt of the interest amount.

¶12

Ratio / Principle

On the calculation placed on record, the total amount payable to the petitioner up to 31 January 2025 is Rs.7,51,099/-, which is to be paid to the petitioner within four weeks, with the concerned Authority to take forward approval/sanction at the earliest so payment is not further delayed.

¶19

Detailed headnote1 paragraphs

Bombay High Court (G. S. Kulkarni & Advait M. Sethna, JJ.) disposed of a writ petition by Dr. Vijaykumar Shivdayal Agrawal against the General Manager, Central Railway & Anr. concerning delayed payment of gratuity. The petitioner superannuated in May 2011, but his gratuity of Rs.10,00,000/- was paid only on 13 June 2018. By order dated 24 January 2025 the Court held that interest on the delayed payment of gratuity was payable to the petitioner not only as on 13 June 2018, but also interest for the period on the accrued interest amount till receipt of the interest amount, and directed calculations with an estimated payment date of 28 February 2025. Pursuant thereto, the respondents filed a calculation dated 30 January 2025 (Mr. Pradeep Kumar, ADFM/II/BB) showing interest of Rs.2,45,138/- on the principal interest amount of Rs.5,05,961/-, making the total payable up to 31 January 2025 Rs.7,51,099/-. The Court directed payment of this amount within four weeks, requested the Authority to expedite sanction, appreciated the fairness of the respondents and counsel, and disposed of the petition with no costs.

¶1

WP 7186-2024.doc

¶2

IN THE HIGH COURT OF JUDICATURE AT BOMBAY

¶3

CIVIL APPELLATE JURISDICTION

¶4

WRIT PETITION NO. 7186 OF 2024

¶5

Dr. Vijaykumar Shivdayal Agrawal ...Petitioner Versus The General Manager, Central Railway & Anr. ...Respondents

¶6

Mr. Shivaji A. Masal for petitioner.

¶7

Mr. Suresh Kumar for Respondents.

¶8

CORAM : G. S. KULKARNI & ADVAIT M. SETHNA, JJ.

¶9

DATE : 3 FEBRUARY 2025

¶10

P.C.:

¶11

We had heard the learned counsel for the parties on this petition. On 24 January 2025, after hearing the learned counsel for the parties, on the amount of interest, which would become payable to the petitioner on the gratuity amount of Rs.10,00,000/-, which was infact paid on 13 June 2018 and for further interest payable to the petitioner. We had accordingly passed the following order :-

¶12

“1. Mr. Suresh Kumar, learned counsel appearing for the respondents, on instructions, has fairly stated that, the gratuity amount of Rs.10,00,000/- was paid to the petitioner on 13 June 2018. However, it is not in dispute that the interest on such amount payable to the petitioner from the date of his superannuation which has taken place in May, 2011 till the amount is received by the petitioner on 13 June 2018, has become due and payable. In our opinion, the interest on delayed payment of gratuity would be required to be paid to the petitioner, not only as on 13 June 2018 being the date of receipt of the gratuity amount, but also interest for the period on the accrued interest amount till receipt of the interest amount.

¶13

Page 1 of 2

¶14

Rajesh Chittewan, PA

¶15

WP 7186-2024.doc

¶16

Let calculations in that regard be prepared an estimating date of payment to 28 February 2025. Interest calculations accordingly be done and placed on record of this Court.

¶17

We accordingly adjourn the proceedings to 31 January 2025 (H.O.B).”

¶18

In pursuance of the of the aforesaid order, Mr. Suresh Kumar, learned counsel for the Respondent-Central Railway, has placed on record the interest calculation arrived at by Mr. Pradeep Kumar, ADFM/II/BB dated 30 January 2025, which sets out the calculations of interest on the principal interest amount of Rs.5,05,961/- to be at Rs.2,45,138/-. These calculations are for the different periods from 13 June 2018 to 31 January 2025 as set out. The same is taken record and marked ‘ X ’ for identification.

¶19

According to such calculation, the total amount payable to the petitioner upto 31 January 2025, is be Rs.7,51,099/-, being now paid to the petitioner. Let this amount be paid to the petitioner within a period of four weeks from today. We request the concerned Authority to take forward approval/sanction to such payment at the earliest, so that the payment is not further delayed.

¶20