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2005 DIGILAW 700 (KAR)

Venkatesh Acharya v. Hatti Gold Mines Co. Limited

2005-10-20

R.GURURAJAN

body2005
ORDER R. Gururajan, J.—The Petitioner-Venkatesh Acharya is before me seeking for a direction with regard to the interest payable towards delayed payment of Gratuity by the Respondent s. 2. The Petitioner retired from the service of Respondent No. 1- Company. He was paid over Gratuity for a sum of Rs. 2,37,332/- as against his entitlement of Rs. 3,25,177/-. The Petitioner accepted the Gratuity under protest. He filed an application before the Controlling Authority with regard to the balance claim. The Controlling Authority in terms of an order dated 31.7.2000 ordered payment of Rs. 87,368/- together with interest at 10% within one month from the date of receipt of the order. The Company filed an appeal. The appeal stood dismissed. The Appellate Authority rejected the claim of the interest in its order dated 5.9.2001. This order is challenged. 3. The Respondent No. 1 is represented by the learned Counsel Sri M.R.C. Ravi. Parties are heard. 4. Law is well settled in terms of the statute itself that the workman is entitled for interest towards delayed payment of Gratuity. The Appellate Authority ought to have granted interest at 10% in terms of the statute. Unfortunately, no interest is granted. In the circumstances, I find substance in the argument of the Petitioner. Interest is therefore, ordered to be granted. 5. At the time of the arguments, a memo is filed by the Petitioner with regard to his interest claimed. The Petitioner has claimed interest at 10% on Rs. 3,25,610/- for a period between 1.12.1998 and 5.7.1999. The said claim works out to Rs. 21,707/-. The claim is reasonable. The Workman has claimed for interest at 10% from the date of award of the Controlling Authority till the date of payment for the enhanced amount which works out to Rs. 11,650/-. According to the Petitioner, he is entitled to a sum of Rs. 33,357/-. The same is not disputed. In the circumstance, I deem it proper to direct the Company to settle the interest claimed within four weeks from the date of receipt of the copy of the order. 6. this Court has come across several cases where parties deposit the amount in terms of the order of the Controlling Authority as required under the Act. this Court also has come across that the Gratuity appeals are not disposed of quickly. In fact, in some cases it takes a couple of years for disposal. 6. this Court has come across several cases where parties deposit the amount in terms of the order of the Controlling Authority as required under the Act. this Court also has come across that the Gratuity appeals are not disposed of quickly. In fact, in some cases it takes a couple of years for disposal. The amount deposited during this period earns no interest. It is not in the interest of either of the parties. 7. Supreme Court in the case of General Manager, Kerala State Road Transport Corporation, Trivandrum Vs. Mrs. Susamma Thomas and others, AIR 1994 SC 1631 has considered with regard to the appropriate investment to safeguard the interest of the parties. Admittedly, the parties before the Appellate Authorities are Workmen of the Industry. For no fault of them, even after success they are unable to get the interest. The Act is also silent with regard to the time schedule for settling the appeal. in these circumstances, I am of the view that this Court in terms of the power vested under Article 226 of the Constitution of India can direct the Labour Commissioner to issue appropriate directions in the matter to deposit of the amount deposited in appeals filed by the Employer for the purpose of interest, in a Nationalized Bank with high yielding interest by way of fixed deposit at least for a period of one year. The interest derived out of the deposit has to be made over to the successful party by the Appellate Authority viz., Deputy Commissioner. This, in my view, would meet the needs of justice as otherwise the amount is lying without interest. 8. In the circumstance, I deem it proper to direct the Office to send a copy of this order to the Commissioner of Labour, Bangalore, for circulation and for issuance of appropriate circular directing the Appellate Authority to invest the deposited amount in a Nationalized Bank with high yielding interest by way of fixed deposit at least for a period of one year subject to the result of the appeal and the amount together with interest is to be made over to the successful party before the Appellate Authority. 9. Ordered accordingly. No costs.