GENERAL MANAGEER Vs. RAKESH

JUDGEMENT

(1.) Challenge put forth in this petition under Article 226 of theConstitution of India is against the order dated 12-11- 2010whereby, the Appellate Authority under the Payment of Gratuity Act,1972, while allowing the appeal preferred by respondent No.1/Workman has accorded the interest on delayed payment of gratuity@ 10% per annum.

(2.) The Controlling Authority by order dated 07- 12-2009 rejectedthe application for grant of interest. Being aggrieved, therespondent herein preferred an appeal before the AppellateAuthority, which was dwelt upon and by order dated 12-11-2010 thesame was allowed and the respondent No. 1 was held entitled forinterest from 06-09-1999 to 05-12-2009 to the tune of Rs.85,125/-.

(3.) The petitioner questions the order on the ground that theworkman immediately after his retirement did not approach theauthorities of the petitioner for disbursement of gratuity and itwas the dereliction on his part which had delayed payment ofgratuity, for that, it is urged that the petitioner/employer cannotbe blamed. Relying upon Rule 7 of the Payment of Gratuity Act(Central) Rules, 1972 read with Rule 10 thereof it is contendedthat it is incumbent upon the workman to file an application withina stipulated time, in absence whereof the claim of interest as persub-section (3A) of section 7 is not entertainable. It is urgedthat appellate authority fell into error by ignoring the aforesaidrule position and has wrongfully saddled the petitioner/employerwith an interest @ 10% from 06- 09-1999 to 05-12-2009.