Venkat Vitthal Kalyankar And Others v. The State Of Maharashtra Through Its Secretary And Others
2025:BHC-AUG:26953-DB :: 1 ::
IN THE HIGH COURT OF JUDICATURE OF BOMBAY
BENCH AT AURANGABAD WRIT PETITION NO.13075 OF 2024 Laxmikant s/o Vithalrao Maktedar & ors.... PETITIONERS
VERSUS
The State of Maharashtra & ors.
... RESPONDENTS .......
Mr. Ashish B. Shinde, Advocate for petitioners Mrs. V.S. Chaudhari, A.G.P. for State Mr. R.K. Ingole, Advocate for R.No.2 & 3.
.......
WITH WRIT PETITION NO.2021 OF 2025 Venkat s/o Vitthal Kalyankar & ors.
... PETITIONERS
VERSUS
The State of Maharashtra & ors.
... RESPONDENTS .......
Ms Priyanka Shinde, Advocate for petitioners Mrs. V.S. Chaudhari, A.G.P. for State Mr. R.K. Ingole, Advocate for R.No.2 & 3.
.......
WITH WRIT PETITION NO.2084 OF 2025 Datta s/o Gyanoba Panpatte & ors.
... PETITIONERS
VERSUS
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The State of Maharashtra & ors.
... RESPONDENTS .......
Mr. Ashish B. Shinde, Advocate for petitioners Mrs. V.S. Chaudhari, A.G.P. for State Mr. R.K. Ingole, Advocate for R.No.2 & 3.
.......
CORAM : R.G. AVACHAT AND NEERAJ P. DHOTE, JJ.
DATE : 25th AUGUST, 2025 O R D E R :
These petitioners are similarly placed with the petitioners in Writ Petition No.6770 of 2023, decided on 20th August, 2024. It is not in dispute that the respondentMunicipal Corporation has made applicable to its employees the recommendations of the Seventh Pay Commission and in terms thereof, the petitioners need to be paid the salary and other dues.
2.
Admittedly, the petitioners have been paid first installment of arrears. It is informed that, due to the financial crunch, the respondent- Corporation is unable to pay the petitioners and other employees the entire dues in one go. A resolution has, therefore, been passed to clear the arrears in
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five installments.
3.
We will not adhere to the schedule prepared by the respondent - Corporation.
Learned counsel for the petitioners submits that the direction to pay the arrears of the Seventh Pay Commission, should have been along with interest at the rate of 6% per annum and not additional interest at the 6% in case of default. Learned counsel for the petitioners further prays for grant of interest on the delayed payment of amount of gratuity, the amount of commutation of pension and leave encashment. We agree with the same.
As regard another prayer for grant of interest on the delayed payment of amount of gratuity, the amount of commutation of pension and leave encashment, as the services of the petitioners were pensionable, on retirement, they were entitled to receive pensionary benefits. The rate of interest on the delayed payment of gratuity has been prescribed from time to time. For better appreciation, we propose to refer the relevant provisions in that regard. Section
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8 of the Payment of Gratuity Act, 1972 reads thus:- "8.
Recovery of gratuity.- If the amount of gratuity payable under this Act is not paid by the employer, within the prescribed time, to the person entitled thereto, the controlling authority shall, on an application made to it in this behalf by the aggrieved person, issue a certificate for that amount to the Collector, who shall recover the same, together with compound interest thereon at such rate as the Central Government may, by notification, specify, from the date of expiry of the prescribed time, as arrears of land revenue and pay the same to the person entitled thereto:
Provided that the controlling authority shall, before issuing a certificate under this section, give the employer a reasonable opportunity of showing cause against the issue of such certificate:
Provided further that the amount of interest payable under this section shall, in no case exceed the amount of gratuity payable under this Act.
6.
Section 129-A of the Maharashtra Civil Services Rules, reads thus:- 129-A. Interest on delayed payment of gratuity.- (1) Where the payment of retirement gratuity or death gratuity, as the case may be, has been delayed beyond the period of three months from the date of retirement or death, and it is clearly established that the delay in payment was attributable to administrative lapse, an interest at the rate applicable to General Provident Fund deposits shall be paid on the amount of gratuity. in respect of the period beyond three months:
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Provided that, no interest shall be payable if the delay in payment of such gratuity was attributable to the failure on the part of the Government servant, to comply with the procedure laid down in this Chapter: Provided further that no interest shall be payable in the case where a provisional gratuity is paid. 7.
The notification issued by the Government of India, Ministry Finance, Department of Economic Affairs (Budget Division), dated 10.04.2023, prescribes that the accumulations at the credit of subscribers to the General Provident Fund and other similar funds, shall carry interest at the rate of 7.1% per annum.
8.
In view of the above, we deem it appropriate to grant interest on the delayed payment of gratuity at the rate of 7.1 % per annum. Hence, these Writ Petitions are disposed of with following directions (i) The respondent - Corporation shall pay the petitioners all the arrears as per the recommendations of the Seventh Pay Commission, including interest at the rate of 6% per annum from the date the amount became payable, latest by March, 2026.
(ii) The respondent- Corporation shall pay the petitioners the amount of gratuity with interest at the rate of 7.1% per
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annum, from the date the amount became payable to the date of payment.
(iii) The respondent- Corporation shall also pay the petitioners the other retiral benefits, i.e. difference of amount of commutation of pension and leave encashment, with interest at the rate of 6% per annum from the date the amount became payable to the date of payment. The Writ Petition stands disposed of accordingly.
(NEERAJ P. DHOTE, J.) (R.G. AVACHAT, J.) FMPathan/-