Telangana High Court
WP/25170/2000 of The Guntur Muncipal Corporation, Vs G.V.B.Sarma, on 27 December 2005
SRI JUSTICE N.V. RAMANA Writ Petition No.25170 of 2000 Dated: 27.12.2005 Between: Guntur Municipal Corporation, rep. by its Commissioner, Praveen Prakash, IAS, S/o P.P. Srivasthava, resident of Guntur. ..... PETITIONER AND 1 G.V.B. Sarma, S/o Krishna Rao, D.No.5-12-7(2)2/16, Brodipet, Guntur
THE HON'BLE SRI JUSTICE N.V. RAMANA
Writ Petition No.25170 of 2000
Dated: 27.12.2005
Between:
Guntur Municipal Corporation, rep. by its Commissioner, PraveenPrakash, IAS, S/o P.P. Srivasthava, resident of Guntur.AND
..... PETITIONER
1 G.V.B. Sarma, S/o Krishna Rao, D.No.5-12-7(2)2/16, Brodipet,Guntur and another.
.....RESPONDENTS
THE HON'BLE SRI JUSTICE N.V. RAMANA
Writ Petition No.25170 of 2000
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Order:
Assailing the order of respondent No.2-Industrial Tribunal-Cum-Labour Court,Guntur, passed in M.P. No.7 of 1997, dated 08.08.2000, awarding interest ongratuity amount payable to respondent No.1, the petitioner-Municipal Corporationfiled the present writ petition.
Respondent No.1, who retired from service on 30.04.1995 as a Sanitary Inspector inthe petitioner-Municipal Corporation, filed M.P. No.7 of 1997 before the LabourCourt, Guntur, under Section 33-C (2) of the Industrial Disputes Act, 1947, for determining the amounts due to him. The Labour Court, after elaborate consideration of the entire oral anddocumentary evidence on record, vide impugned order dated 08.08.2000, held thatthere is delay of two years six months on the part of petitioner-Municipal Corporationin making payment of gratuity amount to respondent No.1, and therefore, respondentNo.1 is entitled for interest on the amount of gratuity, which was due and payable onthe date of his retirement, and directed the petitioner-Municipal Corporation to payinterest at 18% per annum on the gratuity amount of Rs. 62,100/- from 30.04.1995 till 07.10.1997 to respondent No.1 within three monthsfrom the date of that order. Aggrieved by the said order passed by the Labour Court,the petitioner-Municipal Corporation filed the present writ petition.
Heard the learned Counsel for petitioner-Municipal Corporation, learned counsel forRespondent No.1, and perused the impugned order of the Labour Court.
Learned counsel for petitioner-Municipal Corporation submits that there is no willfuldelay on the part of the petitioner-Municipal Corporation in making payment ofgratuity amount to respondent No.1 and the delay was only on administrativegrounds. He further submits that respondent No.1 is not entitled for any interest onthe gratuity amount, and the interest now granted by the Labour Court on the gratuityamount payable is exorbitant and the same is liable to be set aside.
On the other hand, learned counsel for Respondent No.1 submits that the LabourCourt after considering the fact that the petitioner-Municipal Corporation made thepayment of gratuity amount to respondent No.1 after more than two years of hisretirement, rightly directed the petitioner-Municipal Corporation to pay interest on thegratuity amount payable, and no interference is called for therewith. He furthersubmits that respondent No.1 is entitled to grant of interest for the delayed paymentand in support of his contention, he placed reliance on the judgment of the apexCourt in “Vijay L. Mehrotra Vs., State of U.P. and others”.
Admittedly, respondent No.1 retired from service on 30.04.1995, and even thoughthe Director of the local fund audit sanctioned the gratuity amount to respondentNo.1 vide orders dated 06.12.1995, the Commissioner of the petitioner-MunicipalCorporation passed orders for payment of gratuity amount to respondent No.1 onlyon 02.03.1996 i.e. after lapse of three months. Thereafter, though the cheque forgratuity amount of Rs.62,100/- was made ready on 15.03.1997, the same was not sent to the petitioner till 07.10.1997, and thereby, there was delay of two years sixmonths in making payment of gratuity amount to respondent No.1, and no reasonwhatsoever has been stated by the petitioner-Municipal Corporation for the delay inmaking the payment of gratuity amount. In Vijay L. Mehrotra’s Case (1 supra) theapex Court held thus:
“Service Law-Retirement-Retirement Benefits-expeditious payment-Held, it is expected that all retirement benefits should be paid on the day ofretirement or soon thereafter if for some unforeseen circumstances thepayment cannot be made on retirement day itself-Appellant retiring on31.08.1997-Payments relating to GPF, GIS, leave encashment, arrears ofpay, gratuity, commuted value of pension and detained amount released toher between 27.11.1997 to 05.11.1999 – Held, there was no reason orjustification in this case for not making the payments for months together-Simple interest awarded @ 18% from the date of retirement to the dates ofactual payments-Pension-Timely payment of-Commuted Pension-Timelypayment of-Civil Procedure Code, 1908, S.34-Interest.”
In the instant case also, even though respondent No.1 retired from service on30.04.1995, the gratuity amount was paid to him by the petitioner-MunicipalCorporation on 07.10.1997 i.e., after lapse of two years six months from the date ofhis retirement. The Labour Court, after considering the delay caused by thepetitioner-Municipal Corporation in making payment of gratuity amount torespondent No.1 passed the impugned order awarding interest.
I see no irregularity or illegality in the order passed by the Labour Court warrantinginterference of this Court in exercise of its jurisdiction under Article 226 of theConstitution of India.
The writ petition is devoid of merits and the same is accordingly dismissed. Nocosts.
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N.V. RAMANA, J.
Date: 27.12.2005
Nsr/Ksr