GENERAL MANAGER/ADMINISTRATION, TAMIL NADU STATE TRANSPORT CORPORATION (KUMBAKONAM) LIMITED Vs. D. DURAIDHANAPAL

JUDGEMENT

(1.) In all these writ petitions, the management of Tamil Nadu State Transport (Kumbakonam) is the writ petitioner. The respondents in these writ petitions were employed with the petitioner corporation. They retired from service but according to the workmen, the gratuity dues were not settled in full. Therefore, they moved the controlling authority under the Payment of Gratuity Act, 1972. The controlling authority allowed their claims. In 23 out of these 24 cases, the authority granted only 6% interest. In one case, the authority granted 10% interest. The workmen filed appeals seeking enhancement of the award granted by the controlling authority, while the management filed petition for the reduction of interest. The appeal of the management was dismissed while the appeal filed by the workmen were allowed and the interest was enhanced from 6% to 10%. Challenging the same, these writ petitions have been filed.

(2.) Heard the learned Senior Counsel for the management. Considering the special circumstances of this case, this Court requested Mr. Ajay Ghose to appear for the workmen.

(3.) The learned counsel appearing for the workmen contended that the orders passed in these writ petitions do not warrant any interference. His submission is that as per Sec. 7(3A) of the Payment of Gratuity Act, 1972, a notification was already issued by the Central Government and it provides for awarding 10% interest. He would contend that the notification that was issued as early as in 1987 is still holding good and no modification notification has been issued. His specific contention is that the management is not justified in placing reliance on a notification issued by the Central Government setting out the rate for repayment of long term deposit and that a special notification under Sec. 7(3A) of the Act is required. In as much as the notification earlier issued under this provision is still holding the field, this Court will have to necessarily abide by the same.