In a landmark judgment, the Tripura High Court has ruled that an employee of a state ‘establishment’ is entitled to claim enhanced gratuity based on the revised ceiling limit set by the Centre. The court held that the state government cannot deny this claim on the grounds of having separate rules for state employees.
The decision brings relief to a petitioner who served as a steno-typist in the District Rural Development Agency (DRDA). Justice S. Datta Purkayastha, presiding over the case, affirmed that the provisions of the Payment of Gratuity Act, 1972, apply to the petitioner’s employment, thus entitling him to the enhanced ceiling limit of Rs. 20,00,000, as revised by the Central government.
The petitioner, who retired on 31 December, 2019, was initially denied the enhanced gratuity and only received Rs. 10,00,000. Despite the Government of India’s notification on 29 March, 2018, raising the gratuity ceiling to Rs 20,00,000, the state adhered to its prior limit of Rs 10,00,000. The petitioner subsequently demanded Rs 13,69,665 but was paid only the lower amount, prompting the writ petition.
The state government argued that its separate rules for DRDA employees under the District Rural Development Agency Employees Death cum Retirement Gratuity and Leave Encashment Regulations of Tripura, 2014, should prevail. However, the Court rejected this contention, stating that since the 1972 rules were adopted by the state for setting its ceiling limit, any revisions by the Central government should also apply.
It further asserted that since the Government of India revised the ceiling limit to Rs 20,00,000, less favorable gratuity cannot be paid where the provisions of the 1972 Act are applicable.
This ruling mandates the state to honor the revised gratuity ceiling and ensures that employees receive fair treatment in line with central provisions, reinforcing the uniform application of gratuity entitlements across state and central employees.
