KEYWORDS: Gratuity, disbursement, Case of K Rajendra Prasad Vs. State of Kerala & Ors. , DCRG(Death-Cum-Retirement-Gratuity)
Justice Murali Purushothaman, in the case K Rajendra Prasad Vs. State of Kerala & Ors. , held in favor of a retired regional Engineer that maximum amount of gratuity would be paid to the employee by determining it from the date of termination of the employee.
It was cleared that according to the payment of gratuity act, 1972, that it would be determined from when it becomes payable and not from the date of it’s disbursement. It’s amount shall not exceed the maximum amount that is notified under the enactments from the date it becomes payable.
If it becomes clear or assumed that the amount of gratuity would be paid in a claim under the Payment of Gratuity Act, 1972 then also, it’s amount won’t be determined from the date on which sanction was accorded for DCRG(Death-Cum-Retirement Gratuity) or the date amount was disbursed to him.
Although, High Court didn’t clarified the date to ask for claim for the delay in disbursement of DCRG. In the respective case, On May 20, 2006, Board sanctioned the gratuity amount but didn’t gave amount of Rs 2.6 lakh under DCRG and also withheld his last month salary. So, he filed a plea to get claim of maximum amount of gratuity of 1,00,000 Rs. and his last month salary.
But High Court rejected his petition and held that his last month’s salary would be provided to him but gratuity amount would be given according to Kerala Civil Services and Payment of Gratuity Act, 1972 to be determined from date on being payable.
Name of Intern : Chanchal, College Name : GLA University, Mathura, Semester : 2nd, an intern under Legal Vidhiya
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