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Gratuity has to be calculated from the day it became payable and not from date of disbursement: Kerala High Court

The petitioner in this case had worked with the Kerala State Housing Board till May 31, 2002.

On May 20, 2006, the Board sanctioned his pensionary benefits but withheld his Death-Cum-Retirement Gratuity (DCRG) amount of ₹2.6 lakh and also the payments for the last month that he worked, accounting it as his liability on audit objections.

This prompted the petitioner to approach the High Court which initially directed the Board to disburse the DCRG withheld, together with the salary for the last month within a period of one month from the date of receipt of the judgment.

However, the High Court did not schedule a time frame for the petitioner to claim interest for the delay in the disbursement of DCRG.

Accordingly, the Board granted the payment of DCRG and the last month’s pay.

Source: Barandbench

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