BCH ELECTRIC LIMITED Vs. PRADEEP MEHRA

JUDGEMENT

(1.) This appeal is directed against the judgment dated 6th Feb., 2019 of the learned Single Judge dismissing the Appellant's writ petition being W.P.(C) No.3385/2018 thereby affirming an order dated 23rd March, 2018 passed by the Appellate Authority ("AA") under the Payment of Gratuity Act, 1972 ("PGA"). By the said order dated 23rd March, 2018, the AA had dismissed the appeal of the Appellant, thereby upholding an order dated 31st July, 2017 passed by the Controlling Authority ("CA") granting the Respondent Rs.1,73,75,000.00 as balance gratuity along with simple interest @ 10 percent per annum from 1st June, 2012 till the date of payment.

(2.) The facts in brief are that the Respondent joined the Appellant as Chief Operating Officer ("COO") on 12th June, 2000 at a starting salary of Rs.12.36 lakhs per annum. Clause 11 of the letter of appointment stated that the Respondent would be entitled to gratuity on becoming eligible "as per laws". The Respondent resigned from the services of the Appellant, more than twelve years later on 1st June 2012, which was accepted. Along with a letter dated 1st June 2012, the Appellant paid him Rs.36,70,015.00. On 9th Aug., 2012, the Appellant paid the Respondent Rs.10,19,452.00 towards gratuity along with the interest from the due date till the date of payment. According to the Appellant, the said sum included the maximum gratuity payable under the PGA i.e. Rs.10 lakhs plus interest.

(3.) The case of the Respondent, on the other hand, was that he was entitled to a total of Rs.1,83,75,000.00 as gratuity for the entire period of his service. He wrote three letters dated 31st Aug., 2012, 24th Sept., 2012 and 19th Oct., 2012 to the Appellant claiming that amount, but it was to no avail. This led the Respondent filing a claim before the CA under Sec. 7 of the PGA. On 31st July, 2017, based on the affidavits and documents filed before him, the CA passed an order allowing the Respondent's claim and directing the Appellant to pay the differential sum of Rs.1,73,75,000.00 along with simple interest @ 10% per annum for the delayed payment.