Prof. Madan Mohan v. University of Delhi and Ors.
Case brief
What is this about?
In this writ petition, Professor Madan Mohan challenged the delayed payment of his retirement gratuity by the University of Delhi. Although the gratuity principal was eventually paid, the delay resulted from the University's delayed adoption of Ministry of Education directives regarding the New Pension Scheme. The Court held that retirement benefits are valuable rights rather than state bounties. Relying on established precedent and Section 7(3-A) of the Payment of Gratuity Act, the Court ruled that the employer must pay simple interest from the date of superannuation until actual payment.
What did the court decide?
University to pay statutory rate of simple interest under Section 7(3-A) of Payment of Gratuity Act, 1972 from date of superannuation till date of actual payment.