IN THE HIGH COURT OF JUDICATURE AT MADRAS

DATED : 09.12.2025

CORAM

THE HONOURABLE Ms. JUSTICE P.T. ASHA

and

WMP.Nos.4593 & 4594 of 2022

S.Devaraj ... Petitioner

Vs.

1. Tamil Nadu Civil Supplies Corporation Ltd.,

rep.by its Managing Director,

No.12, Thambusamy Road, Kilpauk, Chennai - 600 010.

2. The General Manager, (Administration), Tamil Nadu Civil Supplies Corporation Ltd

No.12, Thambusamy Road, Kilpauk, Chennai - 600 010.

3.The Regional Manager,

Tamil Nadu Civil Supplies Corporation Ltd.

Thiruvannamalai Region,

Thiruvannamalai District. ...Respondents

Prayer:- Writ petition filed under Article 226 of the Constitution of India praying for issuance of a writ of Certiorarified Mandamus, calling for the records relating to the Impugned Order passed by the 2nd respondent in Proc.No.AGR2/18336/2021 dt. 16.07.2021 and quash the same in so far as in ordering for recovery of Rs.6,93,235/- from the petitioner’s gratuity amount and for non-payment of interest on the Gratuity and consequently direct the respondents to pay the interest at the rate of 10% per annum on the total gratuity of Rs.9,98,753/- w.e.f. 01.06.2016 till the date of payment.

For Petitioner : Mr.K.Premkumar For Respondents : M/s.S.Anitha, Spl.GP for R.1& R.2 : Mr.C.Selvaraj for R.3.

O R D E R

The Writ Petition is filed for the following reliefs:-

“calling for the records relating to the Impugned Order passed by the 2nd respondent in Proc.No.AGR2/18336/2021 dated 16.07.2021 and quash the same in so far as in ordering for recovery of Rs.6,93,235/- from the petitioner’s gratuity amount and for non-payment of interest on the Gratuity and consequently direct the respondents to pay the interest at the rate of 10% per annum on the total gratuity of Rs.9,98,753/- w.e.f.

01.06.2016 till the date of payment.”

2. The petitioner had initially appointed as a casual labourer on

28.02.1976 in the respondent corporation and after rendering service of 39 years and 3 months he was allowed to retire from service on 31.05.2015 as a Boiler Operator without prejudice to the disciplinary proceedings and alleged short out turn recovery. Though the petitioner was retired on 31.05.2015, the gratuity amount due to him was not paid within the stipulated time. Therefore, the petitioner had filed an application in PG.No.29/2016 under Section 4 of the Payment of Gratuity Act to the pay the gratuity amount before the Controlling Authority/Deputy Commissioner of Labour at Vellore. In the said application, the respondent management had filed a counter contending that an amount of Rs.6,09,305/- was payable by the petitioner towards Storage loss which was said to have been occurred when the petitioner was in service and an Industrial Dispute in ID.No.11 of 2004 on the file of the Industrial Tribunal at Chennai was pending regarding the said occurrence. After conducting an enquiry, the Controlling Authority had dismissed the Gratuity Application filed by the petitioner on 02.08.2016. Challenging the same, the petitioner had preferred an appeal under Section 7(7) of the ID Act before the Appellate Authority in PGA.No.117/2016. The said appeal was allowed on 21.08.2018. Challenging this order, the respondent corporation had filed WP.No.22716 of 2019. This Writ Petition was dismissed on 16.07.2020. Therefore, the order passed by the Appellate Authority under the Payment of Gratuity Act in PGA.No.117 of 2016 dated 21.08.2018 had attained finality. Thereafter, the petitioner had sent two letters to the respondent management requesting them to pay the gratuity along with interest as per the order passed in PGA.No.117 of 2016

3. On 16.07.2021, the 2^nd respondent had passed the impugned order sanctioning payment of Rs.9,98,753/- towards Gratuity without interest and also directed the 3^rd respondent to recover a sum of Rs.6,93,235/-.

Challenging, the same, the petitioner is before this Court.

4. The 3rd respondent had filed a counter, inter alia, denying the claim of the petitioner and contending that the Appellate Authority, in PGA No