Judgment 1. The petitioner preferred a claim under the Payment of Gratuity Act, 1972 before the Appellate Authority, claiming the gratuity amount. The Appellate Authority viz., the Deputy Commissioner of Labour has allowed the claim of the petitioner by an order dated 23.9.2004. 2. The Controlling Authority by an order dated 23.9.2004 computed the gratuity amount payable to the employees. Against that order, the management preferred an appeal and the Appellate Authority has rejected the appeal of the management on 15.12.2004. Even after the orders of the Appellate Authority, no amount has been paid to the employees as ordered by the third respondent. The Controlling Authority directed the management to deposit the computed amount. The management did not deposit the amount, but preferred an appeal. As per the Payment of Gratuity Act, the management will have to deposit the amount which a condition precedent. Since the amount was not deposited, the Appellate Authority rejected the appeal on 15.12.2004. Thereafter, steps have been initiated to recover the amount and no amount was paid in terms of the order of the Controlling Authority. The petitioner preferred the aforesaid writ petition to recover the amount in terms of the order of the Controlling Authority under the Payment of Gratuity Act, 1972. The learned counsel for the petitioner submitted that at this stage, a portion of the amount has been recovered and paid to the workers, but not the entire amount. Even though the management has received the notice from this Court, they have not appeared either in person or through a counsel. 3. The case of the petitioner is that the management has preferred the writ petition in W.P.No.9164 of 2007 against the order of the Authority under Payment of Gratuity Act, 1972 and the said writ petition was dismissed on 10.2.2011. Since the order has become final, in terms of Payment of Gratuity Act, 1972, the amount ought to have been recovered by the Government together with interest at 15% per annum as contemplated under Payment of Gratuity Act, 1972. Section 8 of Payment of Gratuity Act, 1972 reads as follows:- “8. Since the order has become final, in terms of Payment of Gratuity Act, 1972, the amount ought to have been recovered by the Government together with interest at 15% per annum as contemplated under Payment of Gratuity Act, 1972. Section 8 of Payment of Gratuity Act, 1972 reads as follows:- “8. Recovery of gratuity.--If the amount of gratuity payable under this Act is not paid by the employer, within the prescribed time, to the person entitled thereto, the controlling authority shall, on an application made to it in this behalf by the aggrieved person, issue a certificate for that amount to the Collector, who shall recover the same, together with compound interest thereon at such rate as the Central Government may, by notification, specify from the date of expiry of the prescribed time, as arrears of land revenue and pay the same to the person entitled thereto: Provided that the controlling authority shall, before issuing a certificate under this section, give the employer a reasonable opportunity of showing cause against the issue of such certificate: Provided further that the amount of interest payable under this section shall, in no case exceed the amount of gratuity payable under this Act.” 4. In terms of Section 7(3-A) of the Act, the management will have to pay the gratuity at 10% per annum on the amount determined. Section 7(3-A) is extracted below:- “(3-A) If the amount of gratuity payable under sub-section (3) is not paid by the employer within the period specified in sub-section (3), the employer shall pay, from the date on which the gratuity becomes payable to the date on which it is paid, simple interest at such rate, not exceeding the rate notified by the Central Government from time to time for repayment of long-term deposits, as that Government, may, by notification specify: Provided that no such interest shall be payable if the delay in the payment is due to the fault of the employee and the employer has obtained permission in writing from the controlling authority for the delayed payment on this ground.” 5. In terms of Section 8, extracted supra, at the stage of recovery, the Government will have to recover the amount of gratuity at 15% per annum which is stated in the order of the Assistant Commissioner of Labour in his letter dated 28.9.2006. In terms of Section 8, extracted supra, at the stage of recovery, the Government will have to recover the amount of gratuity at 15% per annum which is stated in the order of the Assistant Commissioner of Labour in his letter dated 28.9.2006. The Government produced a letter dated 14.7.2014 that entire amount barring a sum of Rs.3 lakhs alone have to be recovered and paid to the petitioner and the counsel for the petitioner submitted that the amount is not Rs.3 lakhs but it is much more than that, as the amount has not been arrived at by the Government in terms of the recovery notice read with Section 8 of the Payment of Gratuity Act, 1972 together with the notifications under Section 7(3-A), which are extracted below: “Notification under Section 7(3-A) S.O.874.--In exercise of powers conferred by sub-section (3A) of Section 7 of the Payment of Gratuity Act, 1972 (39 of 1972), the Central Government hereby specifies ten per cent per annum as the rate of simple interest payable for the time being by the employer to his employee in cases where the gratuity is not paid within the specified period. 2. This notification shall come into force on the date of its publication in the Official Gazette. (Vide the Gazette of India, Extraordinary, Pt. II, Sec. 3(ii) dated the 1st October 1987, at p.2).” “Notification under Section 8 S.O.1032 (E).--In exercise of the powers conferred by Section 8 of the Payment of Gratuity Act, 1972 (39 of 1972), the Central Government hereby specifies 15 per cent per annum as the rate of compound interest, recoverable by the Collector for the time being, along with the amount of gratuity and payable to the person entitled thereto. This notification shall come into force on the date of its publication in the Official Gazette. (ibid., Pt. II Sec. 3(ii), Extraordinary, dated the 1st December, 1987).” 6. The learned Government Advocate submitted that the Government will recover the amount and pay the amount of Rs.3 lakhs, on or before 31.7.2014. This Court makes it very clear that once the order of Controlling Authority has become final, the entire amount has got to be recovered in terms of the provisions of Payment of Gratuity Act 1972, together with interest at 15% per annum. This Court makes it very clear that once the order of Controlling Authority has become final, the entire amount has got to be recovered in terms of the provisions of Payment of Gratuity Act 1972, together with interest at 15% per annum. Since it is only an arithmetical calculation, the Recovering Officer will have to determine the amount, as it is only a arithmetical calculation in terms of the decision of the Supreme Court in Fabril Gasosa vs. Labour Commissioner { 1997 (3) SCC 150 }. 7. Apart from the amount of Rs.3 lakhs if any other amount is due after making arithmetical calculation, the said amount should also be recovered and paid to the petitioners, on or before 31.7.2014. The Government Pleader is directed to inform the Registrar-General of this Court about the recovery of Rs.3 lakhs mentioned in the letter dated 14.7.2014, on 4.8.2014 and the remaining amount will have to be recovered by the respondents 1 to 3 from the fourth respondent, on or before 31.8.2014 and paid to the petitioners. 8. The writ petition is disposed of in the above terms.