S.S.SANDHAWALIA, J.

1. Whether the Payment of Gratuity Act, 1972 envisages the grant of interest on delayed payments of gratuity to an employee is the core question in this reference to the Full Bench. If so, whether such interest can be granted in the absence of an express claim therefor in the application of the employee before the Controller ? Equally at issue is the correctness of the contrary view in C.W.J.C. No. 14 of 1985 (Patna Electricity Undertaking V/s. State of Bihar) decided on the 25th of July, 1985.

2. The facts lie in a narrow compass and are not in serious dispute. The petitioner M/s. Champaran Sugar Company Limited are engaged in the business of manufacturing sugar and own a factory therefor situated at Barachakia in the district of East Champaran. Respondent No. 3 Sri Kamlakan Gupta was admittedly their employee of a long standing, who superannuated on the 1st of July, 1976 and his last drawn wage was Rs. 605.29 per month. It is unnecessary to delve into the applicability of gratuity laws on the sugar industry and it suffices that the Payment of Gratuity Act, 1972 (hereinafter called as the Act) became applicable and binding on all sugar industries of Bihar including the petitioner company in the year 1974. On the petitioners own showing, the respondent employee is alleged to have failed in delivering vacant possession of the residential quarters allocated to him and consequently the requisite clearance certificate was not issued by the authorities and the amount of gratuity payable to him was not paid immediately. The respondent-employee by his letter dated the 2nd of May, 1980, addressed to the petitioner company, reiterated his claim for gratuity and the same having not been paid or tendered, he preferred an application before the Controlling Authority on the 5th of May, 1980, under S.7 of the Act and the Rules framed thereunder. The Controlling Authority entertained the said, application despite some delay on the ground that the gratuity amount had been illegally withheld by the company. By the order dated 31st October, 1981, the Controlling Authority held that the respondent-workman was entitled to receive a sum of Rs. 13,980.00 as gratuity for his forty years of completed service. Necessary directions under R.17 of the Rules were also issued to the management for payment of the aforesaid amount within 30 days. The Controlling Authority did not in express terms advert to the interest payable for the delayed payment of gratuity and it is the petitioners stand that the respondent-workman had not in terms claimed any interest on the amount of gratuity admittedly due to him. The petitioner company thereafter filed an appeal before the Joint Labour Commissioner (the Appellate Authority under the Act). By its order (Annexure-2), the Appellate Authority found no merit in the stand of the petitioner and dismissing the same directed the payment of the gratuity amount plus usual interest due thereon. Aggrieved thereby, the present writ petition has been filed primarily and indeed, solely directed against the grant of interest on the amount of gratuity due.

3. At the very threshold stage of admission, reliance was primarily placed on behalf of the petitioner on the Patna Electricity Undertaking V/s. State of Bihar (Supra) for asserting that no interest on gratuity was payable. The correctness of the judgement was forthwith assailed on behalf of the respondents and in the alternative reliance was placed on S.4 of the Interest Act, 1968, for the direction to pay interest on gratuity. Noticing the significance of the issues involved, the case was directed to be heard by a Full Bench.

4. Before one gets enmeshed in details, it is apt and indeed is necessary to view the issues in a larger vista. One has to bear in mind the fact that of late a sea change has come in the law with regard to the approach to pensionary and other retiral benefits. Times were that pensionary benefits were viewed not as a matter of leg