Rita Anthony v. the State of Assam and 2 Ors.
Payment of Gratuity Act, 1972 – Section 7 – interest on delayed payment of gratuity
Case brief
What is this about?
Gauhati High Court, Division Bench (Ashutosh Kumar, CJ, authoring; Arun Dev Choudhury, J), WA/13/2026, decided 13.07.2026 — Writ Appeal concerning Section 7, Payment of Gratuity Act, 1972: whether interest on delayed gratuity runs from 30 days after retirement or only from the employee's 2024 application to the Controlling Authority. Held: where the delay was caused by the employer's wrong calculation of gratuity and the employer never questioned the quantum fixed by the Controlling Authority, 10% simple interest runs from 30 days after retirement; acceptance of a lesser amount through lack of awareness does not defeat the claim. Controlling Authority's award of Rs.7,34,123/- (balance Rs.6,34,123/-) restored against the Holy Child School management; Single Judge judgment dated 18.12.2025 in WP(C) No.5543/2025 modified; appeal allowed; compliance within 90 days.
What did the court decide?
Appeal allowed to the extent indicated: the Single Judge's judgment dated 18.12.2025 stands modified and the Controlling Authority's order restored; the respondents are to pay 10% simple interest on the delayed gratuity calculated from 30 days after the appellant's retirement, undertaking the exercise preferably within 90 days.