ASN 1 WP-2132.sxw IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION WRIT PETITION NO.2132 OF 2005 Capt. V. Sivaraman. ..Petitioner. Vs. All India and another. ..Respondents. Mr.Francisca Philip with Ms. M.N. Bhatkal i/by Singhania and Partners for the petitioner. Mr. Girish Kulkarni along with Advocate Swati Deshmukh and Naveena Kumai i/by M.V.Kini & Co. for Respondent Nos.1&2. CORAM : MOHIT S. SHAH, C.J. AND S.J. VAZIFDAR, J. Tuesday, 1 st March, 2011 PC : This petition was filed in July, 2005 seeking directions against the respondents to accept the petitioner’s resignation letter tendered on 15th April, 2005 and challenging a letter dated 9th May, 2005 of the respondents refusing to accept the resignation letter. The petitioner was appointed as a pilot in the first respondent Corporation and the petitioner had given letter dated 15th April, 2005 seeking to resign from service after the expiry of a period of six months from the date of the notice. 2 By an interim order dated 25th April, 2006, this Court gave the following directions. ASN 2 WP-2132.sxw a) The Respondents will issue within two weeks from today a letter of acceptance to the Petitioner stating that they are accepting the petitioner’s resignation letter dated 15th April, 2005 to be effective from 15th October, 2005. It will be stated in the letter that then acceptance is subject to the result of the petition. b) The Respondents are permitted during the pendency of petition not to release the terminal dues of the Petitioner, to which he would otherwise be entitled since his resignation letter is being accepted. 3 This petition was listed for final hearing on 5th January, 2011, when we called upon the learned counsel for the respondents to indicate the amount of terminal benefits due to the petitioner. At the time of hearing of this petition, the learned counsel for the petitioner has placed on record a copy of the letter addressed to the learned counsel for the petitioner indicating the amounts payable to the petitioner, which aggregated to Rs.26,48,379.73 and which also includes interest payable on the petitioner’s subscription to the provident fund interest upto 15th October, 2005 payable on the employer’s contribution. The amount of gratuity is indicated at Rs.3,23,500/- without any interest. The amount of privilege leave encashment is also shown at Rupees 2,06,846/- and sick leave Rs.90,962/-. 4 The learned counsel for the petitioner makes a grievance that the respondents have not made the correct calculations and the interest ought to have been calculated upto 9th May, 2006 when the ASN 3 WP-2132.sxw respondents actually relieved the petitioner. The learned counsel Mr. Kulkarni, on the other hand submitted that, as per the interim order of this Court, the resignation was to be accepted w.e.f. 15th October, 2005 and therefore, the petitioner is not entitled to any interest amount after that date. The learned counsel for the petitioner submitted that the petitioner has actually worked till 26th April, 2006 and the petitioner has actually received the salary till that date. The respondents are not justified in denying the payment of interest upto that date. 5 Having regard to the fact that the petitioner had worked as a pilot with the respondents Corporation till 26.4.2006, it will be unfair to deny the petitioner the benefits flowing from the fact that he had actually rendered services till 26th April, 2006 and was therefore, also paid salary for the period upto 26th April, 2006. 6 As regards the calculation of gratuity at Rs.3,23,500/-, since the respondents are bound to pay interest under Section 7 of the Payment of Gratuity Act, 1972, the respondents shall pay the said amount of gratuity with interest at the rate specified in the said statutory provision till the date of payment. 7 As far as payment of interest on provident fund amount is concerned, the respondents shall pay interest on the due amount as per the provisions of the provident fund scheme applicable to the employees ASN 4 WP-2132.sxw of Air India and interest at the rate indicated in the scheme shall be payable till the date of actual payment. 8 For the other benefits, we are of the view that, since the respondents have admitted the amount of terminal benefits on the basis of the interest calculated upto 15th October, 2005, the respondents in the first instance shall pay Rs. 26,48,379.37 to the petitioner within a period of one month from today and the petitioner shall accept the same without prejudice to his rights and contentions. 9 The respondents shall accordingly pay all the benefits payable to the petitioner including interest on the amount of gratuity and interest on provident fund amount within one month of the determination thereof. 10 As indicated above, the petitioner shall accept the payments without prejudice to his rights and if any further amount is due, the petitioner shall make a representation setting out his claim. The respondents shall decide the said representation within two months from the date of the representation and if any further amount is payable by the respondents as per the said decision to be taken, the said amount shall be paid within one month from the date of the decision. In case, the petitioner is aggrieved by the decision of Air India, it will be open to the petitioner to institute appropriate proceedings before an appropriate forum to claim the amount. ASN 5 WP-2132.sxw 11 The petition is accordingly disposed of in terms of the above directions. 12 Liberty to apply in case of difficulty. CHIEF JUSTICE S.J. VAZ IFDAR, J.