SHARDA NAND LAL DASLTD Vs. ASSISTANT LABOUR COMMISSIONER

JUDGEMENT

(1.) These two writ petitions that have come up for consideration before this Court, challenging order dated 27/02/2017 passed by the Assistant Labour Commissioner (Central), Nagpur and Controlling Authority under the Payment of Gratuity Act, 1972, whereby direction has been given to pay interest to the petitioner-employee under section 8 of the said Act on account of failure of the employer to pay the amount of gratuity payable under the said Act, within prescribed time. Writ Petition No.2701 of 2017 has been filed by the petitioneremployee (Sharda Nandlal Das) claiming that the rate of interest has been wrongly calculated by the said authority and Writ Petition No.3672 of 2017 has been filed by the employer-Western Coalfields Ltd. claiming that it was not liable to pay any amount towards interest to the said employee as section 8 of the said Act was not applicable to the facts of the present case.

(2.) The petitioner (hereinafter referred to as the "employee") was employed with the respondent-Western Coalfields Ltd. (hereinafter referred to as the "employer") continuously for a period of 40 years and 4 months. The employee retired on 31/01/2012, upon attaining the age of superannuation. According to the employee, as his date of retirement was known to the employer, it was incumbent upon the said employer to have complied with the requirements of the Payment of Gratuity Act, 1972 (hereinafter referred to as the "said Act"), particularly section 7 thereof and amount of gratuity ought to have been paid to the employee within a period of 30 days of his retirement. As such payment was not made, the employee was constrained to submit an application dated 20/04/2012 to the employer for payment of gratuity to which there was no response. In this background, the employee was constrained to file an application under Form 'N' of the Payment of Gratuity (Central) Rules, 1972, for a direction to the employer to make payment towards gratuity. The employee made this application on 15/05/2012 under section 7 of the said Act read with Rule 10(1) of the aforesaid Rules before the Controlling Authority, claiming gratuity to the tune of Rs.27,03,277/-. On 18/06/2013 the said Controlling Authority passed its order directing the employer to pay an amount of Rs.10,00,000/- (Rs.Ten Lakhs Only) together with interest at the rate of 10% per annum for delayed payment. The period of delay was to be calculated from 31/01/2012 i.e. the date of retirement of the employee. The employer desired to file an appeal against the said order of the Controlling Authority under section 7(7) of the said Act before the Appellate Authority and as per the proviso to sub-section(7) of section 7 of the said Act, the employer deposited the amount equal to the amount directed by the Controlling Authority as payable towards gratuity and interest to the employee. Accordingly, the employer deposited an amount of Rs.11,28,283/- (Rs.10,00,000/- towards gratuity and Rs.1,28,283/- towards interest) till the date of deposit before respondent No.1-Controlling Authority.

(3.) On 24/06/2014 the Appellate Authority dismissed the appeal of the employer and upheld the order of respondent No.1 (hereinafter referred to as the "Controlling Authority"). On 23/07/2014 the employer addressed a letter to the Controlling Authority not to release the amount deposited under proviso to section 7(7) of the said Act, as the Management of the employer had decided to challenge the order of the Appellate Authority before this Court. The amount so deposited was not released to the employee. On 05/08/2014, the employee submitted document called GAR-43 in duplicate signed on revenue stamp, along with necessary documents for disbursal of the amount lying in deposit before the Controlling Authority. On 10/06/2015 the employee sent a letter to the Controlling Authority, stating that although this Court had not granted any stay in the writ petition filed by the employer, the amount lying in deposit had not been disbursed to him and the employee requested for release of the said amount. The amount continued to remain in deposit before the Controlling Authority. On 24/06/2015, the Controlling Authority sent a letter to the employer stating that if it failed to send a copy of the writ petition and stay order, the deposited gratuity amount and interest would be released to the employee without any further correspondence.