The main legal point established in the judgment is the statutory entitlement of an employee to interest on delayed payment of gratuity as per the provisions of the Payment of Gratuity Act, 1972.

ORDER :

1. This petition under Article 226/227 of the Constitution of India has been filed for setting aside the order dated 31.5.2014 (Annexure P/1) passed by respondent No.4/Appellate Authority and for modifying the order dated 29.11.2013 (Annexure P/2) passed by respondent No.5/Controlling Authority-Assistant Labour Commissioner, Bilaspur.

2. Brief facts of the case, as mentioned in the writ petition, are that initially the petitioner was appointed in the respondent-department on 16.4.1976 and retired from the post of Senior Assistant on 30.10.2010 after serving for about 35 years. However, when his gratuity amount was not released, he made several requests and representations to the respondent authorities and when no action was taken thereon, ultimately he made an application to respondent No.5 for grant of gratuity with interest which was registered as Gratuity Case No.08/PGA/2013 and the same was allowed by order dated 29.11.2013 (Annexure P/2) with a direction to the respondent authorities to release the gratuity amount within a period of 30 days, failing which the amount will carry interest @ 10% p.a. However, no interest was allowed on the delayed payment of gratuity. Hence, the petitioner preferred an appeal against the said order before respondent No.4 for grant of interest on the delayed payment of gratuity. The Housing Board also preferred an appeal against the said order before respondent No.4. Both the appeals were dismissed by respondent No.4 by order dated 31.5.2014 (Annexure P/1). The petitioner’s appeal was dismissed on the ground that he approached the Court for grant of gratuity with interest after 28 months of his retirement, without appreciating the fact that from the date of his retirement, the petitioner has been making several requests to the respondent authorities in this regard and when no action was taken thereon, ultimately he approached the Court for the same. Hence this petition for the following reliefs:

i. That, this Hon’ble Court may kindly be pleased to quash the order dated 31/5/2014 (Annexure P/1) passed in Appeal No.57/PGA/L.C./2014 (Shri Ram Narayan Agrawal V. Commissioner, Chhattisgarh Housing Board & Another) by the respondent No.4/Appellate Authority under the Payment of Gratuity Act,1972 and Deputy Labour Commissioner.

ii. That, this Hon’ble Court may kindly be pleased to modify the order dated 29/11/2013 passed in gratuity case No.08/PGA/2013 (Shri Ram Narayan Agrawal V. Commissioner, Chhattisgarh Housing Board & Another) by the respondent No.5/Controlling Authority, Payment of Gratuity Act, 1972 and Assistant Labour Commissioner, Bilaspur and grant interest also @ 18% per annum for the delayed payment of gratuity from the date of retirement of the petitioner till the date of release of payment of gratuity i.e. from 30/10/2010 to 20/06/2014.

iii. Any other relief, which this Hon’ble Court deems fit and proper, may also kindly be granted to the petitioner including the cost of the petitioner, in the interest of justice.”

3. Learned counsel for the petitioner submits that the impugned action on the part of the respondents is arbitrary, illegal and contrary to law applicable to the facts and circumstances of the case. While passing the impugned order dated 31.5.2014 respondent No.4 failed to appreciate the fact that from the date of his retirement, the petitioner had been making several requests and representations for release of gratuity and when no action was taken on the same, then only he approached the Court for redressal of his grievance. He submits that payment of gratuity is not a bounty but it is the hard earned money of the employee/petitioner. As per Section 7(2)(3) & 3(A) of the Payment of Gratuity Act, 1972, the employee is entitled to gratuity within 30 days, failing which the employee is entitled for interest and in spite of there being specific provision, the amount of gratuity has not been released within 30 days and the interest has also not been paid to the petitioner. Rel