The main legal point established in the judgment is the employer's responsibility to pay gratuity within 30 days and the entitlement of the employee to statutory interest if the amount is not paid within the specified period.

PERMOD KOHLI, J.

( 1 ) PETITIONER was working as Personnel manager under the respondent-BCCL. While in service he was served with a charge-sheet and later dismissed from service on February 5, 1993. The order of dismissal came to be challenged before the Patna High Court, ranchi Bench. Writ petition filed was allowed and the dismissal order set aside vide judgment of the Court dated May 26, 1995. In a Special leave Petition filed before the Honble supreme Court of India, the case was remanded back to High Court. In the meanwhile, petitioner retired from service on July 31, 1995. The disciplinary proceedings were initiated against the petitioner pursuant to the order passed by the Court dated March 14, 1997 after remand. Disciplinary proceedings resulted in his exoneration vide order passed on march 23, 1998. Petitioner was paid an amount of Rs. 1,00,000/- as gratuity on July 8, 1998 without statutory interest. He made an application before the controlling authority who after hearing the parties passed an order dated October 29, 2001 directing the respondent Nos. 3 and 4 to pay simple interest @ 10% p. a. on the amount of gratuity i. e. , Rs. 1,00,000/- for the period january 9, 1995 to July 30, 1998. This amount was worked out as Rs. 28333/ -. Employer filed an appeal before respondent No. 1 (appellate authority ). This appeal was however allowed to be withdrawn vide order dated March 22, 2002 with a liberty to file a fresh one, the same having been filed by incompetent person. In view of the liberty granted, respondent filed second appeal being Case No. P. G. Appeal 10/2002 against the order dated October 29, 2001 passed by the controlling authority granting interest. Appellate authority vide his order dated May 15, 2002 reduced the amount of interest from Rs. 28,333/-to Rs. 2,917/- vide order dated May 15, 2002. The appellate authority modified the order of the controlling authority on the ground that employee though retired in 1995 applied before the controlling authority on December 20, 1999 and no justification or reasons were given for such a delay. Accordingly, the amount of interest ordered to be paid w. e. f. April 23, 1998 i. e. , 30 days after the date of exoneration. Petitioner has challenged this order primarily on the ground that the order of appellate authority is contrary to provisions of Payment of Gratuity Act, 1972. Even in the counter, respondents have defended the order of the appellate authority on the ground indicated in the order by stating that petitioner for the first time filed an application in Form "n" on December 20, 1999 while he retired on July 31, 1995 without any explanation for delay. Learned counsel appearing for the petitioner has relied upon Sections 7 (2) and 7 (3-A) of Payment of Gratuity Act. Relevant extract of Section 7 is quoted here under:

"7. Determination of the amount of gratuity.- (1)-A. person who is eligible for payment of gratuity under this Act or any person authorized, 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 the 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 fo