V. KALYANASUNDARAM Vs. DISTRICT COLLECTOR NILGIRIS DISTRICT

JUDGEMENT

(1.) This Writ Appeal is filed against the order made in W.P. No. 16817 of 2012 dated 12.03.2013, wherein the learned Single Judge has rejected the claim of interest for the belated payment of gratuity to the appellants, insofar as giving direction to disburse the proportionate interest to the appellants, if any excess amount is available with the 3rd respondent viz., the Liquidator cum Assistant Director of Industries and Commerce. It is not in dispute that the appellants are entitled to get gratuity. It is also not in dispute that the appellants have received the principal amount payable towards gratuity to the tune of Rs. 2,01,803, Rs. 1,01,686, Rs. 1,20,545 and Rs. 45,007 respectively, totalling a sum of Rs. 4,69,041/-. The learned Single Judge had refused to give positive direction to pay interest for the belated payment of gratuity on the ground that the Society was under liquidation.

(2.) The contention of the learned counsel for the appellants is that under Section 7(3-A) of the Payment of Gratuity Act, 1972, if the amount of gratuity is not paid by the employer on the date when it is payable, simple interest at such rate not exceeding the rate notified by the Central Government from time to time for repayment of long-term deposits, as that Government may, by notification specify, shall be paid by the employer till the date of payment.

(3.) Further, according to the learned counsel for the appellants, the interest payable as per the Government of India Notification as on date is 8.75% p.a. and therefore, the appellants are entitled to get interest at the rate of 8.75% p.a. from the date when the amount became due till the date of payment. The learned counsel also submitted that though the Society is under liquidation, that will not absolve their liability to pay interest, in the light of the overriding power given under Section 14 of the Payment of Gratuity Act, 1972.