No interest payable on gratuity by employer if deposited timely with Controlling Authority due to pending criminal case of moral turpitude and departmental proceedings, as per Payment of Gratuity Act provisions.

JUDGMENT :

DEEPAK ROSHAN, J.

1. Heard learned counsel for the parties.

Brief Facts

2. While the respondent-writ petitioner Dr. Jitendra Kumar Sharma was functioning as Medical Superintendent at Bhurkunda Colliery, Barkasayal Area, he was implicated in a criminal case on charges of demand and acceptance of illegal gratification of Rs.500/- from one Badri Turi, a Piece Rated Worker. On 07.04.2003, being R.C. Case No.9(A)/2003(R) and a departmental proceeding was also initiated against him vide Memorandum of Charge as contained in Memo No. PM(A)OE/Disc.Case/JKS/03/21067-74 dated 27.12.2004.

Dr. Jitendra Kumar Sharma superannuated from his services on 31.07.2013, however, on account of pendency of the departmental proceeding involving major penalty, the gratuity amounting to Rs.10.00 Lakh was deposed with the Assistant Labour Commissioner (Central), Hazaribagh vide Demand Draft bearing No.770389 dated 29.08.2013 vide letter No.31.08.2013 (Annexure 1).

3. The respondent-writ petitioner applied for release of the said amount before the Controlling Authority under the Payment of Gratuity Act -Cum- Assistant Labour Commissioner (Central), Hazaribagh being P.G. Application No. 36(10)/2014, wherein the said application was allowed vide order dated 13.02.2015 and the respondent was advised to apply in the prescribed format for withdrawal of the said amount, but no interest was awarded as the amount was already deposited with the Controlling Authority.

4. The Management preferred an appeal before the Appellate Authority being PGA (25)/2015 and the Appellate Authority allowed the said appeal vide order dated 31.12.2015 (Annexure 3).

5. Being aggrieved by the said order, the respondent-writ petitioner moved this Court in W.P. (L) No. 1063 of 2016 and this Court by an order dated 18.08.2022 directed CCL to disburse the amount of gratuity along with interest if not already paid, within 60 days.

It appeared from the records that apparently while passing the order dated 18.08.2022, this Court lost sight of the fact that the gratuity was already deposited far back on 31.08.2013 with the Controlling Authority under the Payment of Gratuity Act, 1972 i.e. the Assistant Labour Commissioner (Central), Hazaribagh and as such, there was no occasion to direct payment of the said gratuity amount along with interest.

6. In such circumstances, the CCL filed the instant application seeking clarification of the said order to that extent. The respondent had appeared and filed a detailed counter affidavit wherein the respondents admitted that he has already withdrawn the gratuity form the Controlling Authority Cum Assistant Labour Commissioner (Central), Hazaribagh on 20.09.2022 itself, however, claimed that he would still be entitled for interest.

7. Law in this regard is well settled. Admittedly, gratuity was not released in favour of the writ petitioner because of pendency of a criminal case involving moral turpitude and departmental proceeding for a major misconduct.

8. Section 4(6) of the Payment of Gratuity Act, 1972 reads as under:-

“Notwithstanding anything contained in sub-section (i):

(a) the gratuity of an employee, whose services have been terminated for any act, wilful omission or negligence causing any damage or loss to, or destruction of, property belonging to the employer, shall be forfeited to the extent of the damage or loss so caused;

(b) the gratuity payable to an employee may be wholly or partially forfeited-

(i) if the services of such employee have been terminated for his riotous or disorderly conduct or any other act of violence on his part; or (ii) If the services of such employee have been terminated for any act which const