D.D.TEWARI (D) THR. LRS. vs UTTAR HARYANA BIJLI VITRAN NIGAM LD.&ORS

The Supreme Court held that pension and gratuity are valuable rights of employees, and any undue delay in their payment warrants the award of interest at the current market rate, as established in State of Kerala & Ors. Vs. M. Padmanabhan Nair. The Court found that the High Court erred in not awarding interest on the delayed payment of retiral benefits to the appellant, who was entitled to such interest due to the culpable delay by the employer. Consequently, the Court directed the respondents to pay the withheld gratuity along with interest at the rate of 18%.