NATIONAL INSTITUTE OF FASHION TECHNOLOGY Vs. RAM SARAN

JUDGEMENT

(1.) Vide the present petition, the petitioner impugns order dated 29.01.2018 passed by the Appellate Authority in Gratuity Appeal No.36(29)/2017 P.A. DYC in Claim Petition No.ALCII/36(61)/2016/2016-AKB, whereby the petitioner's appeal against the order passed by the Controlling Authority under the Payment of Gratuity Act, 1972 (hereinafter referred to as Act) has been rejected. The Controlling Authority had vide its order dated 30.08.2017 directed the petitioner to pay to the respondent simple interest @ of 10 % per annum for the delay in releasing the amount of Rs. Rs.95,792/- payable to him as gratuity.

(2.) Learned counsel for the petitioner does not dispute the fact that there was a delay in releasing gratuity to the respondent, but contends that there was no wilful default on the part of the petitioner in remitting the gratuity as the petitioner/Institute had to take a considered decision whether its employees should be granted gratuity as per the Act. He further submits that once a decision was taken by the petitioner/organisation on 29.10.2015 to pay gratuity to its employees as per the provisions of the Act, the petitioner immediately remitted the gratuity amount to the respondent on 15.01.2016. He, therefore, prays that the award of interest, in these circumstances is wholly unwarranted.

(3.) I have considered the submissions of the learned counsel for the petitioner and also perused the records.