Case Law Analysis
|Madhya Pradesh High Court
Payment of Gratuity Act, Section 7(2) | Widow Entitled to Compound Interest on Unpaid Gratuity After Controlling Authority’s Final Order: MP HC
The Madhya Pradesh High Court has ordered the Ujjain Municipal Corporation to pay Rs.14.46 lakh gratuity to a widow, along with 15% compound interest, after the employer failed to execute a final order issued under the Payment of Gratuity Act. This ruling reinforces that statutory gratuity awards, once final, are enforceable as debts with compounded penalties for state delay - setting a critical precedent for legal heirs of deceased employees.
