BALAKRISHNA V Vs. H M T LTD

JUDGEMENT

(1.) In this batch of writ petitions common question of law arises for consideration and, therefore, they are taken up for hearing and disposal together.

(2.) All the petitioners herein have retired on 31-10-1996 under the Voluntary Retirement Scheme (for short 'VRS') formulated by the respondent-Company. It is their specific case that they are entitled to receive gratuity amounts as per Section 4 of Payment of Gratuity Act, 1972 (for short 'the Act') read with Rule 7 of Payment of Gratuity (Central) Rules, 1972 (for short 'the Rules'), on the date of retirement itself. It is stated that the respondent-Company failed topay the gratuity amount on the date of retirement itself and paid the amount in the month of April, 1997, though they have retired in the month of October, 1996. Under those circumstances, the petitioners claim interest at the rate of 24% per annum. It is stated that the inaction and negligence on the part of the respondent-Company in paying the gratuity amount had caused financial problems and inconvenience to the petitioners. There is no justification on the part of the respondent-Company for the delayed payment. It is stated that inspite of representations, the respondent-Company failed to pay interest. Hence the writ petition.

(3.) In the counter-affidavit it is stated that the company is passing through a grave financial situation and with great difficulty the company is able to raise necessary finance to meet its day-to-day expenditure. The company is not even in a position to disburse the salaries to those who are in employment as on to-day. The company is facing critical financial condition and, therefore, could not meet its obligation of paying gratuity amount to some of the employees, who had retired from service in time. The company, however, made its efforts to release gratuity to the employees who had retired from service in a phased manner as and when it could generate necessary amounts. Under those circumstances there was some delay in payment of amounts to the petitioners.