CHAIRMAN-CUM-MANAGING DIRECTOR, ALLAHABAD BANK Vs. APPELLATE AUTHORITY UNDER THE PAYMENT OF GRATUITY ACT

JUDGEMENT

(1.) Impugned in the present writ petition is the order dated 1.8.2011 (Annexure-P-7), order modified on 25.8.2011 (Annexure-P-8) as well as order dated 19.9.2011 (Annexure-P-9), passed by respondent No. 2, vide which simple interest at the rate of 9% per annum under the Payment of Gratuity Act, 1972, was granted on a sum of Rs. 3,50,000.00 under Sec. 3-A of the said Act for the period 26.3.2002 to 1.11.2010. Also impugned in the present writ petition is the order dated 16.7.2012 (Annexure-P-11), modified on 30.7.2012 (Annexure-P-12), passed by respondent No. 1 i.e. Appellate Authority under the Payment of Gratuity Act, whereby the appeal against the said orders was dismissed.

(2.) The facts of the case are that respondent No. 3, namely, Sulakshan Kumar Arora, Ex. Senior Manager, retired from the service of Allahabad Bank on 17.3.2001 after seeking voluntary retirement under the special voluntary retirement scheme, called 'Allahabad Bank (Employees') Voluntary Retirement Scheme, 2000m (ABEVRS-2000). All the dues including the gratuity of Rs. 3,50,000.00 were released to the petitioner on 8.2001. Thereafter, a new pension scheme (Annexure-P-1) came into operation. Respondent No. 3 applied for the said bank's pensions scheme, giving undertaking dated 26.3.2002 (Annexure-P-2). He also deposited back the amount of gratuity amounting Rs. 3,50,000.00 with the petitioner-bank on 26.3.200 It also comes out that the matter regarding gratuity was in issue before the Honourable Supreme Court of India in Civil Appeal No. 1478 of 2004, which was decided on 15.12009 (Annexure-P-4) between Allahabad Bank and the retired employees of the Allahabad Bank. The Apex Court in its judgment dated 15.12009 (Annexure-P-4) held as under :-

(3.) A clarification/modification of the said order was sought, which was granted on 29.1.2010 (Annexure-P-5), in which it was clarified that those officers of the bank, who were working prior to 1.7.1979 and have retired after coming into force of the said Act on 31.10.1993, shall alone be entitled to such benefit. Thereafter, the gratuity of Rs. 3,50,000.00 which was deposited back by respondent No. 3, was credited by bank into his account on 1.11.2010. Thereafter, respondent No. 3 moved an application dated 8.5.2010 (Annexure-P-6), claiming interest for the period during which the gratuity was retained by the bank i.e. from 26.2002 to 1.11.2010. Vide the impugned order, the Controlling Authority under the Payment of Gratuity Act, 1972, allowed simple interest at the rate of 9% per annum, which was affirmed by the Appellate Authority under the Payment of Gratuity Act, 1972.