K L CHANDNA Vs. PUNJAB NATIONAL BANK

JUDGEMENT

(1.) THE present appeal is filed by the appellant being aggreived by the order dated 27th July, 2006 passed by the learned Single Judge. The main grievance which is raised by the appellant in this appeal is that the learned single Judge was not justified in directing for payment of only 6% as interest instead of 10%, which is interest due and payable in terms of the respondent's own circular dated 20th July, 1999.

(2.) IT is submitted by the counsel appearing for the appellant that in view of the aforesaid mandate of the circular issued by the respondent themselves, the learned Single Judge was not justified in allowing only 6% interest on the late payment of the arrears of gratuity whereas it should have been 10%. Our attention was also drawn to the relevant guidelines regarding terminal benefits, which state as follows:

(3.) IN the present appeal, the order passed by the learned Single Judge dated 10th January, 2008 on the review application is also under challenge as the said review application was dismissed. Although appellant has claimed 12% interest on the aforesaid late payment of gratuity, yet, in our considered opinion, in terms of the aforesaid provision contained in the circular issued by the respondent and the guidelines regarding terminal benefits, the appellant would be entitled to simple interest @ 10% per annum as the respondent has not been able to prove and establish that there was any delay in the payment of the aforesaid amount due to the fault of the appellant.