IN THE HIGH COURT OF JHARKHAND AT RANCHI
ANANDA SEN, J.
Virender Kumar – Petitioner
Versus
The Union of India Rep. through Regional Labour Commissioner (Central) – Respondent
W.P. (L) No. 3840 of 2012
Decided On : 25-08-2021
Payment of Gratuity Act - Section 7(3-A) and 7(2) - Code of Civil Procedure, 1908 - Indian Penal Code - section 196 - repayment of long-term deposits - payment is due to fault of employee - Respondent-Bank submits that petitioner had moved before different forums, which resulted in delay. He further submits that petitioner did not file all requisite forms nor did make any request to pay amount of gratuity. Thus, delay cannot be attributed to employer, i.e. Allahabad Bank. He submits that for first time, on 22.06.2009, application was filed by petitioner for Payment of Gratuity Act, which was, in fact, incomplete. He submits that this delay was on part of petitioner, so he is not entitled to get any relief - Payment of Gratuity Act provides for determination of amount of gratuity - Sub-Section (1) of aforesaid Section provides that a person, who is eligible for payment of gratuity, or any person authorized on his behalf, may send his application to employer in prescribed form – Held, Payment of Gratuity Act have simultaneously not been satisfied by respondents – Court have no hesitation to hold that petitioner is entitled to receive interest in terms of Section 7(3-A) of Payment of Gratuity Act with effect till amount was actually paid. amount should be calculated in terms of provisions as contained in Section 7(3-A) of Payment of Gratuity Act and should be paid to petitioner within six weeks from date of receipt of a copy of this order by respondent-Allahabad Bank. Consequentially - writ petition stands allowed.
JUDGMENT :
ANANDA SEN, J.
1. Heard learned counsel appearing for the petitioners and the learned counsel for the respondents through Video Conferencing. The lawyers have no objection with regard to the proceeding, which has been held through Video Conferencing today at 10.30 a.m. They have no complain in respect to the audio and video clarity and quality.
2. Petitioner confines his prayer only in respect of payment of interest on the delayed payment of gratuity.
3. It is an admitted case that the petitioner joined service of Allahabad Bank on 12.01.1976 and was dismissed on 14.03.1991. His dismissal order was upheld up to Hon’ble Supreme Court. It is admitted case that the gratuity was paid on 05.03.2010.
4. Counsel for the petitioner submits that the gratuity should have been paid immediately after 14.03.1991, as per the Payment of Gratuity Act, but, the respondents delayed the matter and ultimately paid the same on 05.03.2010, so the petitioner is entitled for interest in terms of Section 7(3-A) of the Payment of Gratuity Act.
5. Mr. P.A.S. Pati, learned counsel appearing for the respondent-Bank submits that the petitioner had moved before different forums, which resulted in delay. He further submits that the petitioner did not file all the requisite forms nor did make any request to pay the amount of gratuity. Thus, the delay cannot be attributed to the employer, i.e. Allahabad Bank. He submits that for the first time, on 22.06.2009, application was filed by the petitioner for Payment of Gratuity Act, which was, in fact, incomplete. He submits that this delay was on the part of the petitioner, so he is not entitled to get any relief.
6. After hearing the parties, I find that the petitioner was dismissed from service on 14.03.1991 and his gratuity was paid on 05.03.2010. Even if there was litigation by the parties, the employer, Allahabad Bank, could not have withheld the gratuity amount, which the petitioner was entitled to receive. Section 7 of the Payment of Gratuity Act provides for determination of amount of gratuity. Sub-Section (1) of the aforesaid Section provides that a person, who is eligible for payment of gratuity, or any person authorized on his behalf, may send his application to the employer in the prescribed form. Duty of the employer is prescribed in Section 7(2) of the Payment of Gratuity Act, which provides that no sooner the gratuity becomes payable, employer shall, whether an application is preferred under Section 7(1) of the Payment of Gratuity Act or not, shall determine the amount of gratuity and give notice to the person in writing to whom gratuity is payable and also to the controlling authority specifying the amount of gratuity so determined. For better appreciation, it is necessary to quote Section 7 of the Payment of Gratuity Act herein below:
(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 for repayment of long-term deposit
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