Tamil Nadu government servants are entitled to interest on delayed gratuity under Rule 45A.

The first respondent sought interest for the delayed settlement of his gratuity, relying on the Payment of Gratuity Act.

The Single Judge granted relief under Rule 45-A of the Tamil Nadu Pension Rules, 1978.

The temple’s Joint Commissioner/Executive Officer appealed against that order.

1. Whether the first respondent was entitled to interest for delayed payment of gratuity under Rule 45-A of the Tamil Nadu Pension Rules, 1978

2. Whether the Single Judge’s order granting that relief warranted appellate interference

The Court held that the Payment of Gratuity Act does not apply to Tamil Nadu Government servants, but that they may claim interest for delayed settlement of gratuity under Rule 45-A of the Tamil Nadu Pension Rules, 1978

The Court noted that the Single Judge had granted relief under Rule 45-A, rather than under the Payment of Gratuity Act.

Since Rule 45-A provided the applicable basis for the first respondent’s claim to interest on delayed gratuity, the Court found no infirmity in the order and no ground to interfere.

The appellant was directed to settle the interest within eight weeks of receiving a copy of the order.

No costs were awarded, and the connected miscellaneous petition was closed.