Can I Still Claim My Gratuity Balance After Retirement Despite Withdrawing Some in 2014?

I worked for an organization in the private sector for the past 28 years (1992-2020). In 2014, I withdrew 1 Lakh from my gratuity for personal use. I retired in 2020. Can I now claim the remaining balance as the management states they are unable to provide the employees with the money?

Gratuity Payment Upon Retirement

By his own words, the poster has been in continuous service with the establishment for 28 years, from 1992 to 2020, and retired in 2020. Gratuity, being a terminal benefit, would become payable only in 2020 upon his retirement. When gratuity is thus payable on termination of employment, no deductions could be made from it. Therefore, the 1 lakh rupees he received in 2014 can only be considered an advance or loan and cannot be a part of his gratuity, even if it was agreed to be so by his employer and himself.

Missing Details and Legal Entitlement

The post is incomplete without vital details such as whether the Payment of Gratuity Act, 1972, is applicable to the establishment at any time during the poster's tenure and his last drawn salary.

However, if the Act is applicable, he is entitled to gratuity for the entire stretch of his 28 years of service in the organization based on his last drawn salary without any deduction. The employer cannot refuse to pay on the grounds of the amount already received, nor can they adjust it now against the statutory gratuity. It is for the poster to pay back the amount after the receipt of his gratuity. Since there is a denial to pay gratuity by the employer, the poster can file a claim before the Controlling Authority under the Act for recovery.

An employee here mentions that management cannot afford to provide the remaining gratuity amount. How should the employee proceed with the matter? And what happens if the management denies payment in front of the Controlling Authority?