The central legal point established in the judgment is that the principal amount of gratuity and the statutory interest under Section 7(3A) of the 1972 Act are both payable without any limitation for claiming the same, and cannot be denied solely on the ground of delayed claim for interest.

JUDGMENT :

1. In this intra-court appeal, the solitary question of law which arises for consideration is as to whether the retired employee of the Respondent-Federation while being directed to be paid the principal amount of gratuity, can be denied statutory interest admissible and payable u/S 7(3A) of Payment of Gratuity Act, 1972 (for brevity "1972 Act") merely on the ground that he was a fence-sitter who filed his Writ Petition in 2017 because after similarly placed employees, who had approached this Court in 2006, were benefited by judgment dated 12.09.2013.

2. The learned Single Judge has partly allowed the petition by directing payment of principal amount of gratuity on the ground that the same is statutory in nature under the 1972 Act but in the same breath has denied the payment of interest on gratuity which is also statutory in nature u/S 7(3 A) of the 1972 Act by holding thus:

"6. It is well established principle of law that a petition can be dismissed on the ground of delay and latches and the present petition also suffers from the same. Delay defeats equity. However, similarly placed employees who are the co-accused with the petitioner have been granted benefit of payment of gratuity, this Court does not find any good reason to deprive the petitioner from the said relief. However, the delay in filing the petition would disentitle the petitioner from claiming any interest on the gratuity amount.

7. It is submitted by the counsel for the petitioner that since the payment of interest on the gratuity amount is statutory in nature, therefore, that cannot be denied to the petitioner.

8. Considered the submissions made by the counsel for the petitioner.

9. It is not a case of withholding of gratuity without any order. In the present case by order dated 11.7.2006, the gratuity amount of the petitioner was forfeited and since the petitioner did not challenge the order of forfeiture of the gratuity for a period of 11 years, therefore, this Court is of the considered opinion that the petitioner is not entitled for the interest on the gratuity amount."

3. Thus, the statutory interest u/S 7(3 A) of the 1972 Act has been denied on the ground of failure of petitioner to assail the order of forfeiture of gratuity dated 11.07.2006 (Annexure P-l) within a reasonable time since WP. 17423/2017 was filed after 11 years qua a cause of action which arose in 2006.

4. It is evident from record that the order of forfeiture of gratuity was assailed in Writ Petition in question as Annexure P-1, under relief clause 7.1.

5. The learned Single Judge by allowing payment of principal amount of gratuity has impliedly set aside the impugned order dated 11.07.2006.

5.1 Once the learned Single Judge quashes the impugned order (expressly or by implication) by holding that the amount of gratuity cannot be denied merely on the ground of delayed approach to the court because the same is statutory in nature then the interest accruing and becoming payable to the petitioner u/S 7(3A) also cannot be denied since the same is also statutory in nature under the scheme of 1972 Act.

6. For better appreciation and proper adjudication, Section 7 of the 1972 Act is reproduced below:

7. Determination of the amount of gratuity. (1) A person who is eligible for payment of gratuity under this 1972 Act or any person authorised, in writing to 1972 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. (3A)