Service matter – Salary – Gratuity – Not paid – Liable to pay interest on the same for the delayed period. [2023 PLRonline 0126]

Service Matters Relating to Salary and Gratuity

1. Right to Salary :
   • Employee performing his duties is entitled to timely payment of his salary.
   • The petitioner’s salary for the period from July 1992 to August 1999 was not paid on time, and it was only released in April 2001.
   • The court directed that interest on the delayed salary should be paid at a rate of 12% per annum, as applicable in the year 2001, under the purview of Article 226 of the Constitution of India.
2. Gratuity Payment and Delay :
   • Gratuity payment, due in 1999, was only made in February 2020.
   • Given this substantial delay, the respondents were directed to pay interest on the gratuity amount at 9% per annum.
   • The court held that holding back the gratuity was wrongful and the petitioner was entitled to the amount at the relevant time, as per Article 226 of the Constitution of India.
   • 2023 PLRonline 0126
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