SPECIAL OFFICER CHENNAI CENTRAL CO-OPERATIVE BANK LIMITED Vs. CONTROLLING AUTHORITY UNDER PAYMENT OF GRATUITY ACT, 1972

JUDGEMENT

(1.) The challenge in this intra court appeal is to the order dated 22 February 2016 in W.P.No.26104 of 2014, whereby and where under, the learned single Judge directed the appellant to pay interest to the second respondent on account of the delayed payment of gratuity by confirming the order passed by the Controlling Authority under the Payment of Gratuity Act, 1972 (hereinafter referred to as the "Gratuity Act").

(2.) The second respondent initiated proceedings before the first respondent claiming interest on account of the delayed payment. According to the second respondent, pursuant to the settlement arrived at between the workman and the Management under Section 18(1) of the Industrial Disputes Act (hereinafter referred to as the "I.D.Act"), the Management was bound to revise the wages and consequently, the gratuity. However, the gratuity amount was not paid within the statutory period of 30 days. Though the application was made on 30 August 2010, payment was made only after a period of 190 days. The second respondent raised a dispute before the Controlling Authority under the Gratuity Act on the ground that payment ought to have been made within a period of 30 days and the default thereof would give him a right to claim interest.

(3.) Before the Controlling Authority under the Gratuity Act, the appellant took up a preliminary objection to the effect that the authority has no jurisdiction to adjudicate the matter. The authority, by order dated 5 September 2014 rejected the preliminary objection and arrived at a conclusion that the Controlling Authority under the Gratuity Act is entitled to decide the question as to whether the payment of gratuity to the employee was delayed and as such, whether he is entitled for interest, notwithstanding the fact that the claim was not under the Gratuity Act, but on the basis of a settlement.