1989 LAB. I. C. 903 ::1988 LabLR 356 ::(1988) 2 CurLR 570 ::(1988) 57 FacLR 425 ::(1988) All WC 1060 ::(1988) 2 Lab LN 623 ::(1988) UPLBEC 671

Allahabad High Court

Hon'ble Judge(s): Ravi S. Dhavan , J

Payment of Gratuity Act (1972) , S.8— Gratuity - Delay in payment - Recovery with compound interest - Payment stayed by Court at instance of employer - Employee still entitled to compound interest. (Gratuity- Delay in payment due to stay order - Compound interest). Under provisions of S. 8 of the Act, on delayed payment of gratuity, the employee is entitled to receive compound interest at the rate of 9% per annum. Should an employer lay an action to stall the payment of gratuity and the action ultimately fails, the employee is not to suffer the hazards of litigations. Where the payment of gratuity had been stayed by the court at the instance of employer with a direction to deposit the amount with the Controlling Authority and though an option to withdraw half the amount on furnishing of security was given to the employee, the employee had not opted for the same, the employee would be entitled to be paid gratuity with compound interest and not the bank interest which may have accrued for the period of the interim order. (Para 6 7) .....