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G.Gururajan v. The Commissioner

Madras HC16 Dec 2025WA(MD)/1776/2025

Case brief

AI extract

What is this about?

Gratuity interest rate enhancement 6% to 10% per annum; retired temple employees; Payment of Gratuity Act 1972 Section 7(3A); Reserve Bank of India long term deposit interest rate; Controlling Authority award; W.P.(MD).No.3708 of 2020 dated 17.03.2021; writ appeal under Clause XV Letters Patent; Madras High Court Madurai Bench; Gagan Bihari Prusty v. Paradip Port Trust SLP(C) 20740 of 2022; HR&CE Commissioner; Arulmigu Ramanathasamy Thirukoil Rameswaram; no costs.

What did the court decide?

Interest on the gratuity amount payable to the appellants enhanced from 6% to 10% per annum, replacing the learned Single Judge's direction; the writ appeal allowed on these terms, with no costs. ¶51

G.Gururajan Vs The Commissioner — Madras HC (2025) — LawSathi Research

What the court decided

AI extract

Outcome

Interest on the gratuity amount payable to the appellants enhanced from 6% to 10% per annum, replacing the learned Single Judge's direction; the writ appeal allowed on these terms, with no costs.

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Issue for consideration

Whether the rate of interest payable on the gratuity amount due to the appellants should stand at 6% per annum (as directed by the learned Single Judge) or be enhanced, counsel having urged 10% per annum.

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Court's answer

The order of the learned Single Judge is modified: instead of 6%, the interest rate payable to the appellants on their gratuity shall be 10% per annum.

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Ratio / Principle

Because the temple employees are paid only a pittance of salary, it is just and proper that 10% interest be awarded in such cases.

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Key takeaways

Per the court's reading of Section 7(3A) of the Payment of Gratuity Act, the applicable interest rate is the one awarded for long term deposits by the Reserve Bank of India as per the notification of the Central Government; the court states it is seen that for long term deposits the RBI has directed that 10% interest can be awarded.ratio¶46

Detailed headnote1 paragraphs

Madurai Bench of the Madras High Court (G.R.Swaminathan and R.Kalaimathi, JJ.), 16.12.2025: Retired temple employees who had secured a gratuity award from the Controlling Authority under the Payment of Gratuity Act, 1972 appealed against the direction of the learned Single Judge (in W.P.(MD).No.3708 of 2020, decided 17.03.2021) that the gratuity carry only 6% interest per annum. Holding that employees paid a pittance of salary deserve 10% interest, and invoking Section 7(3A) of the Payment of Gratuity Act (interest tied to RBI-notified rates for long term deposits, which the court read as permitting 10%), with reference to counsel's citation of Gagan Bihari Prusty v. Paradip Port Trust (S.L.P.(C) No.20740 of 2022) where 10% was sustained, the Division bench modified the Single Judge's order to fix interest at 10% per annum and allowed the writ appeal on those terms, without costs.

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W.A.(MD)No.1776 of 2025

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BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT

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DATED : 16.12.2025

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CORAM

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THE HONOURABLE MR.JUSTICE G.R.SWAMINATHAN and THE HONOURABLE MRS.JUSTICE R.KALAIMATHI

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W.A.(MD)No.1776 of 2025

1.G.Gururajan

2.G.Ramanathan

... Appellants

Vs.

1.The Commissioner, Hindu Religious and Charitable Endowment Adminstration, Nungampakkam High Road,

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Chennai - 600 006.

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2.The Joint Commissioner / Executive Officer, Arulmigu Ramanathasamy Thirukoil, Rameswaram.

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3.S.Ramasamy

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4.T.Namburajan

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5.M.Mathuresan

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6.K.Thillai marimuthu

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7.R.Veeramuthukumar

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8.N.Nagalakshmi

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9.R.Velayutham

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1/6

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https://www.mhc.tn.gov.in/judis

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W.A.(MD)No.1776 of 2025

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10.P.Kuppamuthu 11.S.Rajendran 12.K.Kalimuthammal

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13.R.Kalyanaraman 14.G.Lakshmi 15.S.Kalimuthammal

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16.K.Subbammal 17.G.Indirani 18.T.Arumugam 19.V.Nagammal 20.R.Ramayee 21.V.Boomadevi 22.G.Panchavarnam 23.T.Namburajan 24.N.Arumugam 25.K.Suburamanian 26.A.Rajendran 27.A.Muniyandi 28.T.Renuka 29.P.Maruthurajan 30.S.Lalitha @ Srividya 31.K.Santhosh 32.M.Pandi 33.M.Karuppayee 34.C.Udayanatchi

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2/6

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https://www.mhc.tn.gov.in/judis

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W.A.(MD)No.1776 of 2025

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35.M.Karuppayee

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36.R.Mariammal 37.K.Marithaai 38.K.Marithaai 39.M.Muniyandi 40.Vetri Selvi

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... Respondents

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Prayer : Writ Appeal filed under Clause XV of Letters Patent, to allow the writ appeal by setting aside the order passed in W.P.(MD).No.3708 of 2020 dated 17.03.2021 on the file of this Court.

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For Appellants : Mr.R.Ramasamy

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For Respondents : Mr.J.K.Jeyaseelan, Government Advocate for R1. Mr.S.Ramesh for R2 Mr.K.Thangarajan for R3 to R40

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JUDGMENT

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(By G.R.SWAMINATHAN, J.)

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Heard both sides.

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2.The appellants are retired temple employees. Seeking payment

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of gratuity, they moved the Controlling Authority under the Payment of Gratuity Act, 1972. The claim was allowed and the temple management 3/6

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https://www.mhc.tn.gov.in/judis

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W.A.(MD)No.1776 of 2025

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also had deposited the entire gratuity amount subsequently. In the

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meanwhile, to implement the order of the Controlling Authority, the appellants filed W.P.(MD)No.3708 of 2020. The writ petition was allowed. However, the learned Single Judge directed that the gratuity amount allowed by the authority would carry interest at the rate of 6% per annum. Aggrieved by the same, this writ appeal has been filed.

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3.The learned counsel for the appellants draws our attention to quite a few orders including the recent one passed by the Hon'ble Supreme Court in S.L.P.(C) No.20740 of 2022 (Gagan Bihari Prusty Vs. Paradip Port Trust) in which, award of 10% interest has been sustained.

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4.The temple employees are paid pittance of salary. In such cases, it is only just and proper that 10% interest rate is awarded. Our attention is drawn to Section 7(3A) of the Payment of Gratuity Act. It states that the interest rate would be the one awarded for long term deposits by Reserve Bank of India as per the notification of the Central Government. It is seen that for long term deposits, the Reserve Bank of India has directed that 10% interest can be awarded.

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4/6

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https://www.mhc.tn.gov.in/judis

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W.A.(MD)No.1776 of 2025

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5.In this view of the matter, we modify the order of the learned

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Single Judge. Instead of 6%, the interest rate to be paid to the appellants would be 10% per annum. The writ appeal is allowed on these terms. No costs.

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(G.R.S. J.,) & (R.K.M. J.,) 16.12.2025

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NCC : Yes/No Index : Yes / No Internet : Yes/ No ias

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To:

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The Commissioner, Hindu Religious and Charitable Endowment Adminstration, Nungampakkam High Road, Chennai - 600 006.

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5/6

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https://www.mhc.tn.gov.in/judis