Dear Satish,
A one time statutory benefit of the Industrial employees linked to certain types of termination of their employment and mandated to be paid by the employer in lump sum can not be paid periodically according to his whims and fancies. Law is a subject to be understood and to be implemented only with reference to the mischief it aims to eradicate and the benefits it intends to confer on the needy at the appropriate phase in their social life. Unfortunately, at times, some people either understand or misunderstand. The case you 've narrated is one of the latter category, I think. In addition it is one of misunderstanding of the concept of C.T.C too. Here the ultimate loser is the employee only for the computation of gratuity under the Payment of Gratuity Act, 1972 is based on the last drawn wages. One may argue that the monthly basis payment clears the eventuality of forfeiture of gratuity in case of dismissal or sudden closure of the undertaking due to losses. That's why the Act provides for compulsory insurance u/s 4 - A and the exercise of forfeiture of gratuity in case of dismissal is strictly governed by the provisions of Section 4(6) as well.
Therefore, it is imperative that the employees of the organization bring it to the notice of the State Chief Labour Commissioner immediately.
Coming to the case of the particular employee, well, he can file a claim before the Controlling Authority under the Act advancing the argument that what was paid along with his monthly emoluments in the name of gratuity was part of the gross wages determined in the contract of employment.