VALSAD DISTRICT CENTRAL CO OPERATIVE BANK LTD Vs. KRUSHNALAL MANILAL VASHI
LAWS(GJH)-2004-7-35
HIGH COURT OF GUJARAT
Decided on July 27,2004

Valsad District Central Co Operative Bank Ltd Appellant
VERSUS
KRUSHNALAL MANILAL VASHI Respondents

JUDGEMENT

- (1.) The above Special Civil Application No.617/2003 has been filed challenging the order dated 29.10.2002 passed by the Appellate Authority under the Payment of Gratuity Act, 1972 and to declare that the respondent is not entitled for interest as awarded. In Special Civil Application No.666/2003 the petitioner has prayed to quash the order dated 22.10.2002 passed by the Appellate Authority under the Payment of Gratuity Act, 1972, whereby he confirmed the order passed by the Controlling Authority, Vadodara who directed the petitioner to pay a sum of Rs.2,30,751/- towards the payment of gratuity with 15% compound interest per annum from the date of receipt of the Order.
(2.) The respondent was working as an Agent in the Pardi Branch of the petitioner Bank. It is alleged that he had committed misappropriation of funds of the bank to the tune of Rs.13,83,000/-. Therefore, on 17.7.1980 the respondent was suspended and he was served with chargesheet pending departmental enquiry. A criminal case was also filed against the respondent before the Additional Chief Judicial Magistrate at Valsad. 2.1 During the pendency of the criminal proceedings and Departmental Inquiry, the respondent retired from service on 26th December 1997 on his attaining the age of superannuation. However, because of the alleged commission of misappropriation the petitioner bank forfeited the amount of gratuity payable to the respondent. 2.2 After superannuation the respondent filed Application No.5/99 before the Controlling Authority under the Payment of Gratuity Act. The Controlling Authority allowed the said application and directed the Petitioner Bank to make payment of Rs.2,30,880/- towards the amount of gratuity along with 12% interest per annum payable from 27th December 1997 to the respondent. 2.3 The petitioner therefore filed Review Application No.24/99 before the Appellate Authority who allowed the said application. Against the said order the respondent preferred Appeal No.6/2000 before the Appellate Authority who by order dated 13.9.2000 allowed the appeal and directed the petitioner bank to pay the amount of Rs.2,30,880/-. The petitioner bank challenged the said order by way of Special Civil Application No.11481/2000 and this Court by order dated 25.4.2001 set aside the order dated 13.9.2000 on the ground that the respondent had already moved an application before the appropriate Controlling Authority. 2.4 In the meanwhile the Additional Chief Judicial Magistrate, Valsad vide his judgement and order dated 20th November 1999 convicted and sentenced the petitioner for rigorous imprisonment for a period of five years and imposed a fine of Rs.10000/- in default to undergo further imprisonment for a period of six months. The respondent preferred Criminal Appeal No.74/99 before the Additional Sessions Judge, Valsad at Navsari. The learned Judge suspended the order of conviction but did not grant stay against imposition of fine. 2.5 On 20th November 1999 the petitioner issued a show-cause notice to the respondent and after considering his reply dated 7.1.2000 by order dated 15.1.2000 the respondent was dismissed from service with effect from 17th July 1980. 2.6 The respondent preferred an application before the Controlling Authority (Central) claiming the amount of gratuity. The Controlling authority, by order dated 16.1.2002 directed the petitioner to pay a sum of Rs.2,30,751 towards the payment of gratuity along with 15% compound interest per annum from the date of receipt of the Order. The petitioner preferred an appeal against the said order being Appeal Case No.AH/48/(2)/2002. The respondent also filed Appeal Case No.AH/48/(4)2002 claiming interest at the rate of 18% from the date of retirement i.e. 26.12.1997 till realisation of the amount of Rs.2,30,751/-. 2.7 The Appellate Committee authority the appeal of the petitioner and partly allowed the appeal of the respondent by order dated 29.10.2002 and partially modified the order passed by the Controlling Authority, Baroda by directing the petitioner Bank to pay a sum of Rs.99,760/- towards interest for the period from the date of retirement i.e. 27.12.1997 to the date of filing the appeal i.e. 24.4.2002 on gratuity amount of Rs.2,39,751 within 30 days.
(3.) It is against the aforesaid orders the above petitions have been filed.;


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