Point of Law: Once full amount of gratuity becomes payable to the employee due to the consequences of law, then the right to get statutory interest in terms of Section 7(3A) of the Payment of Gratuity Act, cannot be taken away.

JUDGMENT :

Alexander Thomas, J.

The appellant herein has filed the instant Writ Petition (Civil), W.P.(C) No.24921 of 2020, with the following prayers:

“(a) Call for the records leading to the issuance of Exhibit P6 and issue a writ of certiorari or other appropriate writ, order or direction to quash the same;

(b) Declare that withholding the gratuity and other retirement benefits due to the petitioner is illegal and without any authority of law;

(c) Issue a writ of mandamus or any other appropriate writ, order or direction commanding the respondents to pay the gratuity and leave encashment withheld with 12% interest calculated from the date from which it fell due till the payment;

(d) Award costs of and incidental to this Writ Petition (Civil);

(e) Pass such other orders or directions as deemed fit and necessary in the facts and circumstances of the case.”

2. The learned Single Judge, after hearing both sides, has rendered the impugned judgment on 13.01.2021 finally disposing of the said Writ Petition by allowing the main pleas of the writ petitioner by holding that withholding of the gratuity amount due to the petitioner even after his retirement, is illegal and ultra vires as there are no rules for the employer Corporation, which permit continuance of disciplinary proceedings on fixation of liability after retirement and that therefore, the employer Corporation is legally obliged to immediately disburse the gratuity amount due to the petitioner, who has retired as early as on 30.11.2013, etc. However, the learned Single Judge has left open the issue of interest. It is common ground that the employer Corporation has complied with the directions and orders of the learned Single Judge in the impugned judgment by sanctioning and releasing the full amount of gratuity due to the petitioner as per Annexure-A proceedings dated 19.07.2021. The appellant being aggrieved by the non grant of interest, has filed the instant intra-court appeal under Section 5(i) of the Kerala High Court Act contending that the statutory liability to pay the interest is in terms of Section 7(3A) of the Payment of Gratuity Act, 1972 (Central Act No.39 of 1972). It is in these circumstances that the above Writ Appeal has come up for consideration before us.

3. Heard Smt.T.N.Sreekala, learned counsel appearing for the appellant in the W.A./petitioner in the W.P.(C) and Sri.T.Naveen, learned Standing Counsel for the Kerala State Beverages Corporation appearing for all the respondents in the W.A./respondents in the W.P.(C).

4. The appellant/writ petitioner was in the service of the respondent Kerala State Beverages Corporation and while holding the post of Assistant Manager (Accountant in charge), he had retired from service on 30.11.2013. Alleging that certain audit objections have been raised stating that the appellant has allegedly misappropriated certain amounts, the retirement benefits due to the writ petitioner was not released. It was also pointed out by the respondent employer Corporation that criminal proceedings is also pending as against the appellant in connection with the above said allegations of financial irregularities. The appellant had earlier approached this Court by filing Writ Petition (Civil) W.P.(C) No.28567 of 2014 before this Court, seeking for directions for payment of the withheld amount of DCRG, provident fund, etc. The learned Single Judge of this Court disposed of W.P.(C) No.28567 of 2014 as per Ext.P5 judgment on 29.01.2015 noting that liability amounts have been alleged and criminal proceedings are also pending and that going by the provisions contained in Section 4(6) of the Payment of Gratuity Act, the gratuity amounts could be withheld and recovered, if the contingencies mentioned either in Clause (a) or Clause (b) thereof are satisfied and that the Central enactment governing the field, namely, the Payment of Gratuity Act, 1972 permits withholding of gratuity on the grounds stated in Section 4(6) thereof. This Court held that, it is f