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1986 Supreme(Pat) 355

M.P.VARMA, S.S.SANDHAWALIA, S.ALI AHMAD
Champaran Sugar Co. Ltd. – Appellant
Versus
Joint Labour Commissioner And Appellate Authority – Respondent


Judgment

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 Bih





































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