Quick Summary: In a legal battle over gratuity payments, the Bombay High Court dismissed a request from the Maharashtra State Co-operative Marketing Federation Ltd. against Subhash Tukaram Nikam. The case was about delayed gratuity payments and the timing of appeals.
This case began when Subhash Tukaram Nikam, a 66-year-old from Kolhapur, sought his gratuity payment of ₹5,47,000 plus interest from his former employer, the Maharashtra State Co-operative Marketing Federation Ltd., based in Mumbai. He filed a request in 2012 under the Payment of Gratuity Act, 1971.
On February 9, 2015, the Authority in charge decided in favor of Subhash, directing the Federation to pay the gratuity with 9% interest from March 31, 2010, until payment. The Federation, however, challenged this decision.
The Federation's challenge faced a delay, which was excused by the higher authority on April 5, 2018. But when they tried to submit a payment for the gratuity amount on October 9, 2018, the higher authority rejected it. The reason? They hadn't paid the amount within the required 120 days as per the rules of the Act.
The Federation's lawyer, Mr. Bandiwadekar, argued that the payment should be allowed before the challenge was accepted, not necessarily at the time of filing. However, Mr. Manoj Patil, representing Subhash, pointed out that the law requires this payment at the time of filing the challenge, not after.
Judge S. G. Chapalgaonkar reviewed the case and agreed with the higher authority's decision. The court emphasized that the law requires the payment within 120 days of the order, which the Federation failed to do.
On December 1, 2025, the court dismissed the Federation's request. This case underscores the importance of following legal timelines, especially in financial disputes like gratuity payments.
