Authority: Court No. 13 (High Court)

Order Date: 24 August 2026

Case Overview

  • The appellant, Food Corporation of India, represented by advocates Devajyoti Barman and Sanjukta Basu Mallick, filed an appeal (M.A.T. 2466 of 2023) against the judgment and order dated 12 September 2023 in W.P.A. 16617 of 2023. The respondent No.4, Union of India, was represented by advocates Kisor Ray and Kriti.
  • The appellant also filed two condonation applications: CAN 1 2024 seeking condonation of a 65‑day delay in filing the appeal, and CAN 2 2024 connected with the main appeal.
  • The court considered the grounds for delay and the relevance of a coordinate‑bench decision dated 24 September 2024 in M.A.T. 2397 of 2023, which addressed similar gratuity issues.

Observations and Directions

1. The court allowed CAN 1 2024, condoning the 65‑day delay, and ordered no costs.

2. It directed that the coordinate‑bench judgment of 24 September 2024 shall govern the present appeal, subject to the following modifications:

  • (i) The appellant shall not be liable to pay interest on the delayed payment of gratuity for the period during which the gratuity amounts were deposited with the Additional Labour Commissioner‑cum‑Controlling Authority under the Payment of Gratuity Act, 1972, to the extent of the quantum deposited.
  • (ii) The appellant shall remain liable for interest, as ordered in the 24 September 2024 judgment, on the quantum and balance period during which the gratuity quantum was not deposited with the Controlling Authority.

3. Accordingly, M.A.T. 2466 of 2023 is disposed of.

4. The connected application CAN 2 2024 is also disposed of, with no order as to costs.

5. All parties are directed to act on the server copy of this order downloaded from the official website of the court.

Final Outcome

  • The appeal is dismissed with the appellant receiving interest relief on gratuity amounts already deposited, while interest liability persists for undeposited amounts; both condonation applications are granted, and no costs are awarded.

Topics: Legal; Gratuity; Interest Relief