JUDGMENT : Tarlok Singh Chauhan, J. Aggrieved by the non-grant of interest on the delayed amount of gratuity, the petitioner has filed the instant petition claiming therein the following reliefs: "I. That the respondents be directed to pay the interest on gratuity of Rs. Ten Lacs w.e.f. 01.02.2010 to 16.04.2013. The rate of interest may kindly be ordered to be paid @ 12% per annum. II. That the writ in the nature of certiorari may kindly be issued and order dated 18-1-2010 that is Annexure A1 and in reply that is Annexure R-5 and in the amended writ petition Annexure P-3 be set aside and quashed and a writ in the nature of mandamus may kindly be issued that the petitioner is entitled for the interest as prayed for." 2. The respondents filed their reply wherein they have not denied that interest has to be paid on the delayed amount of gratuity, but have sought to justify their action on the ground that while the petitioner was in service with the respondent-Corporation, a departmental inquiry had been initiated against him and the same continued even after his superannuation and eventually culminated into an order of penalty of censure against the petitioner which was imposed vide order dated 18.03.2013 and it is only thereafter the gratuity of Rs.10 lacs was released to the petitioner on 16.04.2013 without any further delay. 3. Now, the moot question is whether the action of the respondents in withholding the gratuity of the petitioner is justified. 4. Section 7 of the Payment of Gratuity Act, 1972 (for short 'the Act') reads as under: "7. Determination of the amount of gratuity.- (1) A person who is eligible for payment of gratuity under this Act or any person authorized, in writing, to 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. (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 employee 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. (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. (4) (a) If there is any dispute as to the amount of gratuity payable to an employee under this Act or as to the admissibility of any claim of, or in relation to, an employee for payment of gratuity, or as to the person entitled to receive the gratuity, the employer shall deposit with the controlling authority such amount as he admits to be payable by him as gratuity. (b) Where there is a dispute with regard to any matter specified in clause (a), the employer or employee or any other person raising the dispute may make an application to the controlling authority for deciding the dispute. (c) The controlling authority shall, after due inquiry and after giving the parties to the dispute a reasonable opportunity of being heard, determine the matter or matters in dispute and if, as a result of such inquiry any amount is found to be payable to the employee, the controlling authority shall direct the employer to pay such amount or, as the case may be, such amount as reduced by the amount already deposited by the employer. (d) The controlling authority shall pay the amount deposited including the excess amount, if any, deposited by the employer, to the person entitled thereto. (d) As soon as may be after a deposit is made under clause (a), the controlling authority shall pay the amount of the deposit- (i) to the applicant where he is the employee; or (ii) where the applicant is not the employee, to the nominee or, as the case may be, the guardian of such nominee or heir of the employee if the controlling authority is satisfied that there is no dispute as to the right of the applicant to receive the amount of gratuity. (5) For the purpose of conducting an inquiry under sub-section (4), the controlling authority shall have the same powers as are vested in a court, while trying a suit, under the Code of Civil Procedure, 1908, (5 of 1908) in respect of the following matters, namely :- (a) enforcing the attendance of any person or examining him on oath; (b) requiring the discovery and production of documents; (c) receiving evidence on affidavits; (d) issuing commission for the examination of witnesses. (6) Any inquiry under this section shall be a judicial proceeding within the meaning of sections 193 and 228, and for the purpose of section 196, of the Indian Penal Code (45 of 1860). (7) Any person aggrieved by an order under subsection (4) may, within sixty days from the date of the receipt of the order, prefer an appeal to the appropriate Government or such other authority as may be specified by the appropriate Government in this behalf: Provided that the appropriate Government or the appellate authority, as the case may be, may, if it is satisfied that the appellant was prevented by sufficient cause from preferring the appeal within the said period of sixty days, extend the said period by a further period of sixty days. Provided further that no appeal by an employer shall be admitted unless at the time of preferring the appeal, the appellant either produces a certificate of the controlling authority to the effect that the appellant has deposited with him an amount equal to the amount of gratuity required to be deposited under sub-section (4), or deposits with the appellate authority such amount. (8) The appropriate Government or the appellate authority, as the case may be, may, after giving the parties to the appeal a reasonable opportunity of being heard, confirm, modify or reverse the decision of the controlling authority." 5. A perusal of sub-section (2) of Section 7 reveals that it is the onerous responsibility of the employer to determine the amount of gratuity payable to a retiring employee. Subsection (3) of Section 7 enjoins a further responsibility on the employer, to disburse the amount of gratuity payable to an employee, within 30 days from the date it becomes payable. Sub-section (3-A) of Section 7 of the Act states that in case the gratuity is not released to an employee within 30 days from the date the same becomes payable under sub-section (3) of Section 7, the employee would be entitled to " ...simple interest at such rate, not exceeding the rate notified by the Central Government from time to time for repayment of long-term loans, as the Government may, by notification specify". 6. There is, however, one exception to the payment of interest envisaged under sub-section (3) of Section 7 of the Act. The aforesaid exception is provided for in the proviso under subsection (3-A) of Section 7. A perusal whereof reveals that no interest would 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". The exception contemplated in the proviso incorporates two ingredients. Where the two ingredients contemplated in the proviso under sub-section (3-A) are fulfilled, the employee concerned can be denied interest despite delayed payment of gratuity. The first ingredient is that the payment of gratuity to the employee was delayed because of some fault of the employee himself. The second ingredient is that the controlling authority should have approved such withholding of gratuity(of the employee concerned) on the basis of the alleged fault of the employee himself. 7. Insofar as the present controversy is concerned, it would be noticed that the petitioner superannuated on 31.01.2010. However, prior to the same, the respondents had sought vigilance clearance for release of his retiral benefits like EL Encashment, HPL Encashment, Provident Fund and Gratuity. 7. Insofar as the present controversy is concerned, it would be noticed that the petitioner superannuated on 31.01.2010. However, prior to the same, the respondents had sought vigilance clearance for release of his retiral benefits like EL Encashment, HPL Encashment, Provident Fund and Gratuity. However, the same was denied on the ground that major penalty charge sheet has already been issued to the petitioner on 05.10.2009 in a case pertaining to award of a contract in respect of diversion of 800/220 KV TLs near Shahpurkandi dam area. 8. In addition thereto, a decision not to pay the gratuity unless the proceedings against the petitioner were finalized was taken as per Clause 36 C of the CDA Rules which read as under: "In this connection, it is mentioned that as per CDA Rules, clause 36 C: Effect of Vigilance cases on acceptance of Resignation/Superannuation, it is envisaged that "An employee against whom disciplinary action/proceeding is pending at the time of resignation/retirement etc., will not be paid gratuity unless the action/proceedings against him have been finalized. On finalization of the disciplinary proceedings, the release of payment of amount of gratuity will depend on the final outcome of the disciplinary proceedings and keeping in view the orders of the disciplinary authority (Copy enclosed as Annexure-II). 9. It was under these circumstances that three proposal were sent for approval of the competent authority which are as under: "1. Release of Shri P.P. Sharma, Employee No. 16341, Chief Manager(F), w.e.f. 31.01.2010 (AN) on his superannuation. 2. Release of all the benefits as mentioned at NP-1 except Gratuity, subject to settlement of all the outstanding dues, if any on his superannuation. 3. Withholding the amount of Gratuity in respect of Shri P.P. Sharma till the final outcome of the disciplinary proceedings." 10. It is not in dispute that all the aforesaid proposals were approved by the competent authority and, therefore, the requirement of sub-section (3-A) of Section 7 of the Act, stood complied with and after imposition of minor penalty of censure, the gratuity was ordered to be released in favour of the petitioner. 11. As the gratuity payable to the petitioner on attaining the age of superannuation was withheld because of the fault of petitioner himself for which he was charge-sheeted and ultimately a minor penalty of censure was imposed, his claim for interest on the gratuity amount is totally misconceived. 12. 11. As the gratuity payable to the petitioner on attaining the age of superannuation was withheld because of the fault of petitioner himself for which he was charge-sheeted and ultimately a minor penalty of censure was imposed, his claim for interest on the gratuity amount is totally misconceived. 12. Consequently, there is no merit in this petition and the same is accordingly dismissed, leaving the parties to bear their own costs. Pending application, if any, also stands disposed of.