P.D.GOSWAMI Vs. CIMMCO BIRLA LTD.

JUDGEMENT

(1.) The present petition under Art. 226 of the Constitution of India assails the order dated 22.10.2003 passed by the Appellate Tribunal (Appellate Authority under Payment of Gratuity Act), Bhopal, by which the appellate authority while exercising power u/S 7(7) of Payment of Gratuity Act has allowed the appeal filed by the employer and has held that the benefit of interest granted to the employee/petitioner is not payable since the employee/petitioner overstayed in the official accommodation even after his retirement.

(2.) The basic facts giving rise to the present petition are that the petitioner was initially appointed on 29.11.1958 on the post of Permanent Inspector "LFkkbZ fujh{kd" and continued to serve on this post till he attained the age of superannuation on 02.03.1995. At the time of retirement, the last pay drawn by the employee was Rs. 3,200.00. Since gratuity was not paid by the employer, claim was put up before the controlling authority claiming an amount of Rs. 66,460.00 on the strength of having served for 36 years. The controlling authority after adjudicating the claim of the rival parties held that in the absence of any enabling provision empowering employer to withheld gratuity merely because the employee overstayed in the employer's accommodation beyond the date of superannuation, the withholding of gratuity cannot be held to be justified.

(3.) Consequently, the controlling authority directed payment of gratuity to the tune of Rs. 66,460.00 to be paid within thirty days along with S.I. interest @ 10% to be calculated w.e.f. 02.04.1995, with further stipulation that on failure to make payment within this prescribed period, the amount for gratuity shall carry compound interest @15% p.a.