Seylan Bank vs Hon. Gamini Lokuge et al. – CA WRT/0451/2013-2023

The case between Seylan Bank (Petitioner) and various state officials, including the Assistant Commissioner of Labour (3rd Respondent) and a former Director (4th Respondent), addressed the issue of whether the statutory imposition of a surcharge for delayed gratuity payment was proper under the Payment of Gratuity Act, No. 12 of 1983. It was held that the imposition of a surcharge for delayed gratuity payment constituted a valid exercise of statutory authority and did not breach principles of procedural fairness. The principle reaffirmed is that the employer bears the sole statutory duty to pay gratuity in a timely manner, and administrative authorities, acting within their statutory powers, may validly impose surcharges for breaches. The decision was grounded in the statutory framework, e