Date of filing:- 29/04/2023.
Date of Order:-06/05/2024.
DISTRICT CONSUMER DISPUTE REDRESSAL COMMISSION
B A R G A R H (ODISHA).
Consumer Complaint No. 53 of 2023.
Prasanta Pradhan, aged about 62(sixty two) years, S/o Parshuram Pradhan, resident of village/Po. Jhiliminda, Ps. Attabira, Dist-Bargarh, Pin-768103. ..... ..... ..... Complainant.
-: V e r s u s :-
Secretary, Jhiliminda P.A.C.S. Ltd., Po. Jhiliminda, Ps. Attabira, Dist. Bargarh-768013. ..... ..... ..... Opposite Party.
Counsel for the Parties:-
For the Complainant :- Smt. M.Mishra, Advocate.
For the Opposite Party :- Sri M.K.Satapathy, Advocate with associates.
-: P R E S E N T :-
Smt. Jigeesha Mishra ..... ..... ..... ..... ..... P r e s i d e n t.
Smt. Anju Agrawal ..... ..... ..... ..... ..... M e m b e r (W).
Dt.06/05/2024. -: J U D G E M E N T:-
Presented by Smt. Anju Agrawal, Member:-
1) The case of the Complainant is that the Complainant was an employee of the Opposite Party since 10-12-1984 and superannuated on 31-01-2020. As per the payment of Gratuity Act 1972 the employer/Opposite Party had to give all the retirement benefits within one month of superannuation but paid an amount of ₹5,53,220/-(Rupees five lakh fifty three thousand two hundred twenty)only on 11-07-2022. The Complainant has given 35(thirty five) years 1(one) month 21(twenty one) days uninterrupted service to the Opposite Party and his last month of pay was ₹ 29,052/-(Rupees twenty nine thousand fifty two)only. As per gratuity calculation receivable of Complainant is (Last month of pay X year of Service X 15 ) / 26 = (₹ 29,058 X 35 X 15) / 26 = ₹ 5,86,748/-(Rupees five lakh eighty six thousand seven hundred forty eight)only. The Opposite Party has paid ₹ 5,53,220/-(Rupees five lakh fifty three thousand two hundred twenty)only. So the balance amount of ₹33,528/-(Rupees thirty three thousand five hundred twenty eight)only is payable by the Opposite Party. Hence the Complainant filed this case before this Commission for deficiency in service of the Opposite Party.
2) The case of the Opposite Party is that the Opposite Party filed version. The Opposite Party admitted that the Complainant superannuated on 31-01-2020. The Opposite Party submitted that as a dispute case is pending against the Complainant though his various dues have been duly calculated and sanctioned due to pendency of the dispute case the amount has not been disbursed. The Opposite Party has requested the Complainant various times to cause the proceeding to a logical end, but the Complainant is avoiding the same on various pretext for which his dues have not been disbursed. Hence there is no any deficiency on the part of the Opposite Party.
3) After perusal of complaint petition, version and documents filed by the Parties following issues are framed.
Issues
- Whether the case is maintainable under C.P. Act ?
- Whether the Opposite Party is deficient in service ?
- Whether the Complainant is entitled to get relief ?
Issue No.1(one)
4) The Complainant field this case before this Commission for non-payment of gratuity amount by the Opposite Party. In S.C. Case No. FA/266/2009 has held that a proceeding under Consumer Protection Act for a claim for gratuity is maintainable. It has been held as such merely by relying on the decision of Hon'ble National Commission in the case of Venkatesh Vs Viswanath reported in 2006 (I) CPR 473. Accordingly the case is maintainable.
Issue No.2(two)
5) It is an admitted fact that the Complainant was an employee of the Opposite Party society and he has completed service of 35(thirty five) years 1(one) month 21(twenty one) days. The Opposite Party submitted that the Opposite Party has requested the Complainant various time but the Complainant has avoided on various pretext for which dues have not been disbursed. As per the provision of Gratuity Act-1972 the gratuity amount should be released within one month from retirement. Hence it was the duty of the Opposite Party to release the gratuity amount within one month after the retirement of the Complainant. But in the present case the Opposite Party has not released the gratuity amount within statutory period. The Complainant retired on 31-01-2020. But the Opposite Party paid the gratuity amount of ₹5,53,220/-(Rupees five lakh fifty three thousand two hundred twenty)only on 11-07-2022. The Opposite Party has delayed in payment for about 2(two) years 5(five) months. Again the Opposite Party has paid less amount of gratuity. As per gratuity rule gratuity calculation formula is = (15 X last drawn of Salary X Number of competed years of services) / 26. The last drawn of Salary of the Complainant is ₹29,052/-(Rupees twenty nine thousand fifty two)only and he has completed 35(thirty five) years of service. As per gratuity formula the Complainant is entitled to get = (15 X ₹29,052 X 35 ) / 26 = ₹ 5,86,626/-(Rupees five lakh eighty six thousand six hundred twenty six)only. The Opposite Party has paid ₹ 5,53,220/-(Rupees five lakh fifty three thousand two hundred twenty)only. The Opposite Party had made calculation on maximum 33(thirty three) years of service. As per Gratuity Act the minimum continuous 5(five) years is the eligible criteria for gratuity. But there is no such maximum limit on the length of service as per Gratuity Act. The Opposite Party has calculated on maximum 33(thirty three) years of service and paid less amount of gratuity which amounts to deficiency on the part of the Opposite Party. The Complainant is entitled to get the rest amount of ₹ 33,406/-(Rupees thirty three thousand four hundred six)only as per actual calculation. The Opposite Party is deficient in service. The issue is answered accordingly.
Issue No.3(three)
6) For deficiency in service of the Opposite Party the Complainant is entitled to get relief. As per payment of Gratuity Act 1972, the rate of interest for delayed payment of gratuity is determined by the government and is subject to change from time to time. The current rate of interest for delayed gratuity payment is 8%(eight percent) per annum. This means that if an employer fails to make the payment within the stipulated time frame, they are liable to pay an interest of 8%(eight percent) per annum on the amount dues. In this present case payment of gratuity was not done within stipulated time. So the Complainant is entitled to get 8%(eight percent) interest per annum on payment of ₹ 5,53,220/-(Rupees five lakh fifty three thousand two hundred twenty)only which comes to ₹ 99,579/-(Rupees ninety nine thousand five hundred seventy nine)only. Again the Complainant is entitled to get ₹33,304/-(Rupees thirty three thousand three hundred four)only with 8%(eight percent) interest from the date of retirement till date which interest comes to ₹ 11,135/-(Rupees eleven thousand one hundred thirty five)only total amount comes to ₹ 44,439/-(Rupees forty four thousand four hundred thirty nine)only. The issue is answered accordingly.
As per supra discussion the following order is passed :-
O R D E R
7) The Complaint is allowed on contest against the Opposite Party. The Opposite Party is directed to pay ₹99,579/-(Rupees ninety nine thousand five hundred seventy nine)only to the Complainant within one month from the date of this order. Further the Opposite Party is directed to pay ₹ 44,439/-(Rupees forty four thousand four hundred thirty nine)only i.e. the differential gratuity with 8%(eight percent) interest to the Complainant. For deficiency in service the Opposite Party is directed to pay ₹ 40,000/-(Rupees forty thousand)only for compensation and ₹ 10,000/-(Rupees ten thousand)only for litigation expenses to the Complainant. Failing which the entire amount will carry 12%(twelve percent) interest per annum till realisation.
Order pronounced in the open court on 6th day of May 2024.
Supply free copies to the parties.
Typed to my dictation
and corrected by me.
I agree, ( Smt. Anju Agrawal)
M e m b e r(w).
(Smt.Jigeesha Mishra)
P r e s i d e n t.
