Punjab & Haryana High Court Holds 20 Years’ Service Not Mandatory for Gratuity; Panjab University Directed to Release Dues
Case Name: Vinod K. Kapoor v. Panjab University and Others
Date of Judgment: 20 January 2026
Citation: CWP-18660-2002
Bench: Hon’ble Mr. Justice Jagmohan Bansal
Held: The Punjab and Haryana High Court held that completion of 20 years’ service is not a prerequisite for entitlement to gratuity and that gratuity is payable corresponding to the period of continuous qualifying service rendered by an employee. The Court ruled that the prescription of 20 years’ qualifying service for voluntary retirement under the Panjab University Calendar cannot be linked with the statutory right to gratuity. Accordingly, the University was directed to release gratuity to the petitioner for the period he had rendered qualifying service.
Summary: The petitioner, a former employee of Panjab University, challenged the decision of the University Syndicate declaring his post vacant and denying him gratuity. The petitioner had joined the University on 01.04.1981 and was granted permission to visit abroad, followed by extensions. After the Syndicate declined further extension, his post was declared vacant. The petitioner thereafter sought voluntary retirement and vacated official accommodation. He claimed entitlement to gratuity on the basis of his long service.
The University opposed the claim, contending that the petitioner had not completed 20 years of qualifying service as required under the Panjab University Calendar and that the period spent on extraordinary leave without pay could not be counted towards qualifying service. It was further argued that since the petitioner neither superannuated nor was granted voluntary retirement, he was not entitled to gratuity.
The High Court examined the relevant provisions of the Panjab University Calendar, particularly Paragraphs 11.8, 15.1, 17.3, 17.5, 17.8 and 17.9. The Court observed that Paragraph 15.1 clearly provides for payment of gratuity for each completed six-monthly period of qualifying service and does not prescribe any minimum length of service as a condition precedent. The Court held that “qualifying service” refers to continuous service rendered to the University and has no correlation with the 20-year requirement prescribed for voluntary retirement.
The Court further held that although the Payment of Gratuity Act, 1972 does not directly apply to the University, its principles reinforce that gratuity is a statutory right and cannot be denied merely because an employee did not retire on superannuation or voluntary retirement. While the period of extraordinary leave without pay could not be counted towards qualifying service, the petitioner was entitled to gratuity for the remaining period of service actually rendered.
Decision: The writ petition was allowed in part. The Punjab and Haryana High Court directed Panjab University to release gratuity to the petitioner for the period from 01.04.1981 to 29.10.1999. The amount was directed to be paid within two months of submission of bank details, failing which interest at the rate of 7.5% per annum would be payable.