Vijay L. Mehrotra v. State Of Uttar Pradesh And Others

Vijay L. Mehrotra v. State Of Uttar Pradesh And Others

(Supreme Court Of India)

C. A. No. 689/2000 | 31-01-2000

1. Special leave granted limited to the question of granting of interest.

2. The appellant retired from service on August 31, 1997. From the response filed by the respondent, it is clear that most of the payments of the retiral benefits to her were made long after she retired on August 31, 1997. The details of the payments so made are as under :

"CHART"

3. In case of an employee retiring after having rendered service, it is expected that all the payment of retiral benefits should be paid on the date of retirement or soon thereafter if for some unforeseen circumstances the payments could not be made on the date of retirement.

4. In this case, there is absolutely no reason or justification for not making the payments for months together. We, therefore, direct the respondent to pay to the appellant within 12 weeks from today simple interest at the rate of 18 per cent with effect from the date of her retirement, i.e. August 31, 1997 till the date of payment.

5. The appeal is allowed to the above extent.

Advocate List
Bench
  • HON'BLE JUSTICE B. N. KIRPAL
  • HON'BLE JUSTICE S. R. BABU
Eq Citations
  • (2001) 9 SCC 687
  • 2000 (4) SCT 267 (SC)
  • (2000) 2 UPLBEC 1599
  • JT 2000 (5) SC 171
  • 2000 (2) SLR 686
  • (2002) SCC (LS) 278
  • 2000 LABIC 2663
  • (2000) 2 LLJ 253
  • 2000 (3) LLN 1
  • LQ/SC/2000/207
Head Note

Labour Law — Gratuity — Retiral benefits — Interest on — Held, in case of an employee retiring after having rendered service, it is expected that all the payment of retiral benefits should be paid on the date of retirement or soon thereafter if for some unforeseen circumstances the payments could not be made on the date of retirement — In the present case, there is absolutely no reason or justification for not making the payments for months together — Respondent directed to pay to appellant within 12 weeks from date of judgment, simple interest at the rate of 18 per cent with effect from the date of her retirement till the date of payment — Gratuity Act, 1972 — S. 8