Decided on February 05,2007

DCM LTD Appellant
RAM SWAROOP Respondents


HIMA KOHLI, J. - (1.) This writ petition has been filed by the petitioner management against the order dated February 21, 1990 passed by the Appellate Authority under the Payment of Gratuity Act, 1972 (hereinafter referred to as 'the Act'), holding that the petitioner management is liable to pay to respondent No. 1, 10% simple interest on the gratuity amount, from the date the gratuity became payable, to the date on which the amount was deposited with the Controlling Authority. Aggrieved by the said order, the petitioner management has preferred the present writ petition.
(2.) The brief facts relevant to decide the present writ petition are that the petitioner management is a limited company registered under the Companies Act and the owner of Textile Mills known as Delhi Cloth Mills situated at Bara Hindu Road, Delhi. Respondent No. 1 joined the services of the petitioner management in the year 1947 and retired from service on October 23, 1983. The petitioner states that respondent No. 1 was paid a sum of Rs. 16,274/- being the gratuity amount payable to him on October 16, 1984. Respondent No. 1 filed an application before the Controlling Authority in November, 1984 claiming, inter alia, that he was entitled to receive gratuity to the tune of Rs. 19,980/- and not Rs. 16,274/- as paid to him by the petitioner management. Thus, he claimed an additional sum of Rs. 3,706/- along with interest @ 141/2% on the above mentioned additional amount of gratuity claimed by him.
(3.) The petitioner management contested the claim of respondent No. 1 and filed a written statement before the Controlling Authority, wherein various preliminary objections were raised by the petitioner management. The petitioner management also disputed the fact that the last drawn wages of respondent No. 1 was Rs. 962/- as claimed by him in his application. It was stated that the last drawn wages of respondent No. 1 was Rs. 904/-. It was further stated that no amount of interest whatsoever, was payable by the petitioner management to respondent No. 1.;

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