Delayed is not denied but the interest cannot be claimed as a shortcut: Allahabad HC on gratuity arrears

The Petitioner was a retired office assistant from the U.P. Electricity Department. His gratuity amounting to INR 26,897 was withheld by the employer without any justification. The amount was ultimately paid, pursuant to the intervention of the Court, for the release of gratuity. The Petitioner yet again approached the Allahabad High Court vide Writ – A. No. – 3505 of 2024, to claim interest on delayed payments. The question arose before the Court as to whether a statutory interest under the Payment of Gratuity Act, 1972 could be claimed even through a modification application after having been passed through final judgment. The Court reaffirmed the legal principle that interest on delayed gratuity is a statutory right, as recognized under the Payment of Gratuity Act, 1972. It is the duty of the employer to pay interest on gratuity if the payment of gratuity is delayed, except on the ground that delay is directly attributable to the conduct of the employee. Having stated the above, the High Court on May 9, 2025 dismissed the modification application on technical grounds stating that the modification application is not an application for correction of any clerical or arithmetic error or application for extension of time, therefore, in the considered opinion of the Court, the modification application would substantially and majorly change the nature of the initial order. However, the remedy of filing review petition is always open to the petitioner.