M.V. Eqbal, J.
Fertilizer Corporation of India Ltd. – Petitioner
Versus
Union of India & Ors. – Respondents
CWJC No. 3040 of 1994(R)
Decided on : 16.8.2002
Heard the parties.
2. In writ petition the sole question falls for consideration is as to whether besides deposit of the amount equal to amount \.' payable to the employee by way of gratuity, deposit of interest on that amount is mandatory requirement of law for entertaining an appeal by the Appellate Authority.
3. In the instant case, the respondent claimed gratuity from his employer Fertilizer Corporation of India Ltd. The controlling authority under the Payment of Gratuity Act passed final order holding that the employee is entitled to get gratuity amount of Rs. 46,804/- from the Management, it was further held that since opposite parties did not pay gratuity to the respondent within the stipulated time, the employee is entitled for simple interest at the rate of 10% per annum on the gratuity amount.
4. Aggrieved by the said order, the petitioner-Management preferred appeal before the Regional Labour Commissioner (Central), Dhanbad being P.G. Appeal No. 14/1994. The Appellate Authority refused to admit the appeal on the ground that although the appellant deposited the gratuity amount but failed to deposit interest accrued thereon as held by the Controlling Authority.
5, For better appreciation, Section 7 of the Payment of Gratuity Act, 1972 is reproduced here-in-below:-
"Determination of the amount 01 gratuity.-(1) a person who is eligible for payment of gratuity under this Act or any person authorised, in writing, to' act on his behalf shall send a written application to the employer, within such time and in such form as may be prescribed, for payment of such gratuity.
(2) As soon as gratuity becomes payable, the employer shall, whether an application referred to in sub-section (1) has been made or not determine the amount of gratuity and give notice in writing to the person to whom the gratuity is payable and also to the controlling authority specifying the amount of gratuity so determined.
(3) The employer shall arrange to pay the amount of gratuity within thirty days from the date it becomes payable to the person to whom the gratuity is payable.
(3-A) If the amount of gratuity payable under sub-section (3) is not paid by the employer within the period specified in sub-section (3), the employer shall pay, from the date on which tile gratuity becomes payable to the date on which it is paid, simple interest, at such rate, not exceeding the rate notified by the Central Government from time to time for repayment of long term deposits as that Government may, by notification specify:
Provided that no such interest shall be payable if the delay in payment is due to the fault of the employee and his employer has obtained permission in writing from the controlling authority for the delayed payment on this ground.
(4)(a) If there is any dispute as to the amount of gratuity payable to an employee under this Act or as to the admissibility of any claim of, or in relation to, an employee for payment of gratuity, or as to the person entitled to receive the gratuity, the employer shall deposit with the controlling authority such amount as he admits to be payable by him as gratuity.
(b) Where ,:,8re is a dispute with regard to an~: matter or matters specified in clause (a), the employer or employee or any other person raising the dispute may make an application to the controlling authority for deciding the dispute.
(c) The controlling authority shall, after due inquiry and after giving the parties to the dispute a reasonable opportunity of being heard, determine the matter or matters in dispute and if, as a result of such inquiry any amount is found to be payable to the employee, the controlling authority shall direct the employer to pay such amount or, as the case may be, such amount as reduced by the amount already deposited by the employer.
(d) The controlling authority shall pay the amount deposited including the excess amount, if any, deposited by the employer, to the person entitled thereto.
(e) As soon as may be after a deposit is made u
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