RAJASEKHARAN NAI Vs. KERALA STATE ELECTRICITY BOARD

JUDGEMENT

(1.) The petitioners are former employees of the Kerala State Electricity Board (hereinafter referred to as 'the Board' for short). Upon retirement they were paid terminal benefits including gratuity computed in terms of the provisions contained in Part-III of the Kerala Service Rules. Long after their retirement from service, the petitioners filed separate applications before the Controlling Authority under the Payment of Gratuity Act, 1972 (hereinafter referred to as the "Act" for short) seeking payment of gratuity in terms thereof. Those applications were disposed of by orders produced and marked as Exts.P1 to P4 in W.P.(C) No. 34217 of 2011. By the said orders, the Controlling Authority held that the petitioners are entitled to gratuity under the Act and directed the Board to pay the difference in the amount of gratuity together with simple interest at the rate of 10% per annum from the date on which it fell due, within 30 days of question as to whether the petitioners are entitled to interest on the difference in the amount of gratuity was specifically raised and decided in favour of the petitioners. When the amount covered by the said orders was not paid, the aforesaid Writ Petition was filed. When W.P.(C) No. 34217 of 2011 came up for consideration before me on 11.1.2012, after hearing the learned counsel on both sides, it was disposed of by Annexure A1 judgment with the following directions:

(2.) The respondent has entered appearance and filed an affidavit dated 28.2.2013. The stand taken therein is that in view of S. 8 of the Act, the interest paid to the petitioners was limited to the principal amount of gratuity ordered to be paid by the Controlling Authority. It is also contended that if the petitioners are aggrieved by the quantum of interest, they can raise the issue before the appropriate forum.

(3.) The liability to pay interest on the amount of gratuity arises by virtue of S. 7(3A) of the Act, which reads as follows: