JUDGMENT :

B.K. Nayak, J.

1. The petitioner, Gunjibadi LAMPCS Ltd. has filed this writ petition challenging the order dated 26.10.2013 of the Controlling Authority under the Payment of Gratuity Act-cum-Assistant Labour Commissioner, Cuttack in P.G. Case No. 56 of 2006 (Annexure-1) and the confirming appellate order dated 03.07.2014 passed by the Appellate Authority under the Payment of Gratuity Act-cum-Deputy Labour Commissioner, Cuttack in P.G. Appeal No. 7 of 2013 (Annexure-2).

2. Opposite party No. 3 was an employee (Salesman) under the Tribal Development Co-operative Corporation Ltd. In its fair price shop at Baliguda with effect from 28.09.1973 and continued as such till 30.06.1979. In pursuance of circular No. 14285 dated 11.06.1979 of the Registrar, Co-operative Societies, Orissa the fair price shop along with the services of opposite party No. 3 and other staff of TDCC Ltd. were transferred and absorbed permanently under the petitioner with effect from 01.07.1979. Opposite party No. 3 continued as such under the petitioner and retired from service on superannuation on 31.07.2005. After his retirement, opposite party No. 3 applied to the petitioner-employer for payment of gratuity of Rs. 1,11,045/- claiming his last pay as Rs. 6,730/- per month. Opposite party No. 3 also raised the claim for gratuity before the Controlling Authority under the P.G. Act-opposite party No. 1. His claim was resisted by the petitioner on the ground that his last pay was Rs. 2,100/- per month and that the petitioner was only liable to pay gratuity of the period from 01.07.1979 till the date of retirement of opposite party No. 3.

3. The Controlling Authority by his order dated 31.08.2009 directed the petitioner to pay gratuity of Rs. 1,28,129/- for the entire period from 27.09.1973 till the date of his retirement accepting Rs. 6,730/- as the last pay of opposite party No. 3. In P.G. Appeal No. 11 of 2009 filed at the instance of the petitioner, the aforesaid order was confirmed and the appeal dismissed. The petitioner thereafter filed writ petition bearing W.P.(C) No. 17003 of 2011, which was disposed of by this Court by order dated 11.04.2013 setting aside both the original and appellate orders of the authorities under the P.G. Act and remanded the matter to the Controlling Authority to dispose of the same afresh. After such remand, opposite party No. 3 by his application dated 18.05.2013 submitted a revised claim of gratuity for Rs. 39,980.76 on the basis of his last monthly pay at Rs. 2,100/-. He also claimed interest @ 10% per annum on the above gratuity amount for the period from 2005 to 2010 since the petitioner had already deposited gratuity amount of Rs. 31,500/- before the Controlling Authority in 2010. The petitioner resisted the claim stating that it was liable to pay gratuity for the period from 01.07.1979 to 31.07.2005 and not from 1973. The TDCC Limited, which was also impleaded as opposite party No. 2 before the Controlling Authority, filed its counter admitting the employment of opposite party No. 3 under it from 28.09.1973 to 30.06.1979 where after opposite party No. 3's service was transferred to the LAMPCS Ltd. (petitioner). It was further contended that after his retirement opposite party No. 3 has not applied to it for gratuity. It is further submitted that as per order in E.P. Case No. 7 of 1993-94, Rs. 72,000/- is to be realized from opposite party No. 3.

4. The Controlling Authority by his impugned order under Annexure-1 held that opposite party No. 3 was entitled to gratuity for the entire period of service from 28.09.1973 to 31.07.2005 from the present petitioner since as per the Government Circular the fair price shop and its assets and liabilities along with the services of opposite party No. 3 were transferred to the petitioner and therefore, the petitioner is liable to pay gratuity for the entire period. Accordingly, the Controlling Authority assessed the gratuity amount at Rs. 38,769/- and after adjustment of Rs. 31,5