CHAIRMAN CUM MANAGING DIRECTOR Vs. UNION OF INDIA

JUDGEMENT

(1.) This writ petition is under Article 226 of the Constitution of India, whereby and whereunder the order dated 20.08.2018 passed by the Controlling Authority, Regional Labour Commissioner (Central) Ranchi, under Payment of Gratuity Act, 1972 by which the Controlling Authority has decided with a direction to pay a sum of Rs.10,00,000/- along with simple interest @ 10% per annum from the date it became payable i.e. 01.02.2017 till actual date of payment to the opposite parties within 30 days from the date of entitlement to the authority.

(2.) The brief facts of the case of the petitioner as per the pleading made in the writ petition that the respondent no.2 was working as Ex Chief of Township (General Manager P and A) retired from service on 31.01.2017 and after retirement the CPF amount accrued to him to the tune of Rs.31,94,785/- has been paid to him but the other post retiral dues has not been paid due to pendency of the disciplinary proceeding and as such the respondent No.2 has been treated to be continued in service as an employee of the petitioner-Corporation and the said disciplinary proceeding also has been culminated into penalty of reduction by two stages of time scale of pay and therefore, the amount of gratuity has not been released which prompted the respondent no.2 to approach before the Controlling Authority by filing an application for adjudication of his right for getting the amount of gratuity which has been adjudicated vide order dated 20.08.2018, on contest by holding and directing the entitlement of the petitioner for payment of Rs.10,00,000/ along with simple interest @ 10% per annum from the date with effect from 01.02.2017 till actual date of payment by the opposite party within 30 days of the receipt of the order, against which an appeal has been preferred Under Section 7(7) of the Payment of Gratuity Act, 1972 but same has been returned on the ground of non-fulfilment of the mandatory condition for entertaining an appeal as provided under Second proviso to Section 7 (7) of the Act, 1972. Against both the order i.e. passed by the Controlling authority as well as the appellate authority are under challenge by way of the instant writ petition.

(3.) Mr. Anil Kumar Sinha, learned senior counsel for the petitioner assisted by Ms. Richa Sanchita, has submitted that the adjudication made by the Controlling Authority with respect to the direction for payment of a sum of Rs.10,00,000/- along with simple interest @ 10% per annum, so far the statutory amount of Rs.10,00,000/ to be paid in favour of the petitioner as gratuity there is no dispute and there cannot be any dispute but only grievance of the petitioner-Corporation is the disbursement of the amount of Rs.10,00,000/ along with 10% simple interest per annum is unwarranted, it is for the reason that the respondent no.2 himself has delayed in approaching before the authority and as such if delay has been committed on his part he cannot be entitled for the simple interest @ 10% per annum but this aspect of the matter has not been considered by the Controlling Authority which prompted the petitioner to approach before the appellate authority but the appellate authority has returned the same on the pretext of non-depositing the awarded amount of gratuity along with interest, it has been submitted further even as on date there is no difficulty in approaching the appellate authority by depositing the amount of gratuity exclusive of the interest @ 10% (simple) since the mandates of the Act, 1972 does not provide to deposit the amount of gratuity along with any interest in addition to that.