Calcutta High Court in Himangshu Karmakar vs. Food Corporation of India & Ors. (WPA 8398/2025) on June 23, 2025held that an employee, who retired in 2018 but received gratuity only in 2023 after prolonged litigation, was entitled to statutory interest on the delayed payment. Despite court orders confirming his status as a regular employee, the employer delayed gratuity disbursement without paying interest. The Controlling Authority had rejected his claim for interest, stating the employee had not specifically demanded it. The Court found this reasoning flawed, noting that under Section 7(3A) of the Payment of Gratuity Act, 1972, interest on delayed gratuity is a statutory right, not contingent upon a specific claim. It concluded that employees are entitled to interest by default unless the delay is attributable to them.
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