Retired NWKRTC Worker Settles ₹1.28 Lakh Gratuity Dispute At 6% Interest, Below Authorities’ 10% Order, In Lok Adalat

The Corporation filed a writ petition challenging the Controlling Authority’s order directing it to pay respondent-workman Ganapathi differential gratuity of ₹1,28,730 with 10% annual interest, and interest on amounts previously paid, as well as the Appellate Authority’s order

After the matter was referred to the Lok Adalat, the parties filed a joint memo agreeing to settle the gratuity dispute.

Under the settlement, the workman accepted the differential gratuity with interest at 6% per annum from the date of application to 19 September 2026, and interest at 6% on the specified previously paid amounts for the periods awarded by the Controlling Authority.

The Corporation agreed to pay within two months of receiving certified copies of the order

The order records that the matter was referred to the Lok Adalat under Section 20 of the Legal Services Authorities Act, 1987, and disposed of on the basis of the parties’ joint memo of settlement

It states no substantive rule concerning gratuity entitlement or interest, and cites no judicial precedent; the disposal rests on the recorded settlement between the parties.

The Lok Adalat noted that the parties had reached a settlement, that the respondent-workman was identified by the Corporation’s counsel, and that the joint memo specified the agreed payment, the workman’s full-and-final relinquishment of further claims relating to the dispute, and the payment deadline

It therefore disposed of the writ petition in accordance with the settlement rather than adjudicating the merits of the challenged gratuity orders

The Corporation must pay the agreed amounts within two months of receiving certified copies of the order.

Any pending interlocutory applications were also disposed of as no longer surviving