Section 7 · Determination of amount of gratuity

(1) Any person who is eligible to receive payment of gratuity under this Act or any person authorised in writing to act on his behalf, shall send an application in writing to the employer for the payment of such gratuity, within such time and in such form as may be prescribed.
(2) As soon as the gratuity becomes payable, the employer shall, whether the application specified in sub-section (1) has been made or not, determine the amount of gratuity and shall give a notice in writing to the person to whom the gratuity is payable and also to the Controlling Authority, specifying the amount of gratuity so determined.
(3) The employer shall arrange for payment of the amount of gratuity to the person to whom the gratuity is payable, within a period of thirty days from the date on which the gratuity became payable. (3A) If the amount of gratuity payable under sub-section (3) is not paid by the employer within the period specified in sub-section (3), the employer shall pay simple interest on the amount due under sub-section (3) at such rate, not exceeding the rate notified by the Central Government from time to time for repayment of long-term deposits, as that Government may, by notification, specify, from the date on which the gratuity becomes payable to the date on which it is paid:
Provided that no such interest shall be payable if the delay in payment is due to the fault of the employee and the employer has obtained permission in writing from the Controlling Authority for the delayed payment on this ground. (4) (a) If there is any dispute as to the amount of gratuity payable to an employee under this Act or as to the admissibility of the claim of an employee for payment of gratuity or as to the person entitled to receive gratuity, the employer shall deposit with the Controlling Authority so much of the amount as he admits payable on his behalf as gratuity.
(b) Where there is a dispute as to any matter or matters specified in clause (a), the employer or the employee or any other person raising the dispute may apply to the Controlling Authority for deciding the dispute.
(c) The Controlling Authority shall, after due inquiry and after giving a reasonable opportunity of being heard to the parties to the dispute, determine the matter or matters in dispute, and if as a result of such inquiry any amount is found to be payable to the employee, the Controlling Authority shall direct the employer to pay that amount or, as the case may be, such amount as reduced by the amount already deposited by the employer.
(d) The Controlling Authority shall pay the amount deposited including the excess amount, if any, deposited by the employer to the person entitled thereto.
(e) As soon as may be after the amount has been deposited under clause (a), the Controlling Authority shall pay the amount deposited-
(i) to the applicant himself, if he is an employee, or
(ii) to the employee, if the applicant is not an employee, if the Controlling Authority is satisfied that there is no dispute as to the right of the applicant to receive the gratuity amount, to the nominee or, as the case may be, the guardian or heir of such nominee.
(5) For the purposes of holding an inquiry under sub-section (4), the Controlling Authority shall have the same powers as a court has under the Code of Civil Procedure, 1908 (5 of 1908), while trying a suit, in respect of the following matters, namely:-
(a) enforcing the attendance of any person and examining him on oath;
(b) requiring the discovery and production of documents;
(c) receiving evidence on affidavits;
(d) issuing commissions for the examination of witnesses.
(6) Any inquiry under this section shall be a judicial proceeding within the meaning of, and for the purposes of, sections 193 and 228 of the Indian Penal Code (45 of 1860).
(7) Any person aggrieved by an order under sub-section (4) may, within sixty days from the date of receipt of the order, prefer an appeal to the appropriate Government or to such other authority as may be specified in this behalf by the appropriate Government:
Provided that if the appropriate Government or the appellate authority, as the case may be, is satisfied that the appellant was prevented by sufficient cause from preferring the appeal within the said period of sixty days, the said Government or the authority may extend the said period by a further period of sixty days:
[Provided further that no appeal by an employer shall be entertained unless at the time of preferring the appeal the appellant produces either a certificate from the Controlling Authority to the effect that the appellant has deposited with him an amount equivalent to the amount of gratuity required to be deposited under sub-section (4) or until he deposits such amount with the appellate authority.]
(8) The appropriate Government or the appellate authority, as the case may be, may, after giving a reasonable opportunity of being heard to the parties to the appeal, issue an appeal to the Controlling Authority under sub-section (4). The decision may be confirmed, modified or reversed.