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1988 Supreme(All) 325

R.S.DHAVAN
NAGAR PALIKA – Appellant
Versus
CONTROLLING AUTHORITY, PAYMENT OF GRATUITY AND ORS. – Respondent


Advocates Appeared:
Markanday Katju

R. S. DHAVAN, J.


( 1 ) THE only question in the present writ petition is of the liability to pay interest to the retired employees, the respondents, on the gratuity which is payable under the Payment of Gratuity Act, 1972. There is no issue, in reference to the context that the respondents received the gratuity due to them, beyond the prescribed time. The employees have claimed interest in accordance with section 8 of the Act aforesaid. Thus, whether interest is payable is an issue raised in the writ petition.

( 2 ) THE three employees are arrayed as respondent Nos. 2, 3 and 4. These are Messrs Mithualal, din Dayal Mittal and Girja Prasad. Mithualal retired as a Sweeper (Safai Karmchari), Din Dayal mittal retired as an Accounts Clerk and Girja Prasad retired as a Tax Superintendent. All were employed in the Nagar Palika, Khurja, the petitioner. As the issues arc common this Court will take up the matter of Mithualal.

( 3 ) THE said respondent retired on February 28, 1981. He was paid the gratuity on March 30, 1981. He had to formally next apply and seek gratuity. The Nagar Palika as an employer raised an issue to the effect that it is not liable to pay gratuity to its employees upo











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