SECRETARY (ADMINISTRATION KERALA STATE ELECTRICITY BOARD LIMITED Vs. DEPUTY LABOUR COMMISSIONER, KOZHIKODE CONTROLLING AUTHORITY

JUDGEMENT

(1.) The writ petition is filed by the petitioner/employer challenging the order dated 15.10.2014 passed by the Appellate Authority under the Payment of Gratuity Act, 1972, thereby dismissing the appeal filed under Section 7(7) of the Payment of Gratuity Act, 1972 (hereinafter referred to as 'the Act') and confirming Ext.P1 order dated 10.12.2013 passed by the Controlling Authority under the Payment of Gratuity Act, 1972.

(2.) Heard the learned Standing counsel appearing for the petitioner, Kerala State Electricity Board at sufficient length of time. He argued that on 28.02.1997, the 3rd respondent retired from service and he was paid gratuity as per the service rules amounting to Rs.49,350/- (Rupees forty nine thousand three hundred and fifty only) . However, subsequently, the gratuity was reassessed as Rs.1,00,000/- (Rupees one lakh only) and balance amount was paid to the 3 rd respondent in the year 2012. Learned Standing Counsel appearing for the petitioner submitted that the Controlling Authority committed error of law by directing payment of interest, which is more than the balance amount of the gratuity. Learned Standing Counsel for the petitioner drew my attention to Section 8 of the Act and argued that the amount of interest payable cannot exceed the amount of gratuity payable under the Act and therefore, the impugned Exts.P1 and P5 orders are suffering from error of law.

(3.) As against this, the learned counsel appearing for the 3rd respondent argued that there are catena of decisions on this issue and as the stage of issuance of recovery certificate under Section 8 of the Act has not arrived in this case, the petitioner cannot be heard to say that the amount of interest payable cannot exceed the amount of gratuity. She placed reliance on the following judgments:-