IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE S.SIRI JAGAN THURSDAY, THE 19TH JUNE 2008 / 29TH JYAISHTA 1930 WP(C).No. 21575 of 2004(R) -------------------------- PETITIONER: ------------ THE COMMONWEALTH TRUST (INDIA)LTD., 7/1136, SOUTH MANANCHIRA ROAD, CALICUT 673 001 REP. BY ITS EXECUTIVE DIRECTOR. BY ADV. SRI.U.K.RAMAKRISHNAN (SR.) SRI.P.V.LOHITHAKSHAN SMT.P.VIJAYAMMA SMT.UMA GOPINATH SRI.DEVIDAS.U.K SRI.SANDEEP.E. RESPONDENTS: ------------ 1. THE CONTROLLING AUTHORITY UNDER PAYMENT OF GRATUITY ACT 1972, DISTRICT LABOUR OFFICER, KOZHIKODE. 2. M.BALAN, S/O.CHERUTTY, CHERUVANNUR, P.O.KOLATHARA, KOZHIKODE 673 655. 3. P.DEVADASAN, S/O.RAMAN, AVITHODI HOUSE, KARUVANTHURUTHY P.O. FEROKE, KOZHIKODE 673 631. 4. K.C.KRISHNAN, S/O.CHEROOTTY, KURUNKATTIL HOUSE, PUTTAKKAD, P.O.FEROKE, KOZHIKODE 673 631. 5. P.A.APPU, S/O.GOPALAN, VALAPPIL HOUSE, P.O.FEROKE, KOZHIKODE, KOZHIKODE 673 631. 6. T.VIJAYAN, S/O.GANAPATHY, MELEKUNNATH HOUSE, P.O.FEROKE, KOZHIKODE 673 631. W.P.(C)21575 of 2004 7. C.P.LEELA, D/O.VELAYUDHAN, PUTHUKUDI PADAM, VELUTHEDATHU PARAMBA, P.O.FEROKE,NALLUR, KOZHIKODE 673 631. BY ADV. SRI.P.RAMAKRISHNAN - R2 TO 7 SMT.T.C.KRISHNA - R2 TO7 SMT. N. SUDHA DEVI, GOVERNMENT PLEADER THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 16/06/2008, THE COURT ON 19/06/2008 DELIVERED THE FOLLOWING: W.P.(C)21575 of 2004 APPENDIX PETITIONER'S EXHIBITS:- EXT.P1 : TRUE COPY OF THE ORDER DATED 29/05/2003 IN E.C.NO.23 OF 2002. EXT.P2 : TRUE COPY OF THE ORDER DATED 29/05/2003 IN E.C.NO.19 OF 2002. EXT.P3 : TRUE COPY OF THE ORDER DATED 29/05/2003 IN E.C.NO.21 OF 2002. EXT.P4 : TRUE COPY OF THE ORDER DATED 29/05/2003 IN E.C.NO.24 OF 2002. EXT.P5 : TRUE COPY OF THE ORDER DATED 29/05/2003 IN E.C.NO.20 OF 2002. EXT.P6 : TRUE COPY OF THE ORDER DATED 29/05/2003 IN E.C.NO.22 OF 2002. /TRUE COPY/ P.A TO JUDGE scm S.SIRI JAGAN, J =================== W.P (C) .No. 21575 of 2004 =================== Dated this the 19th day of June, 2008. J U D G M E N T The employer in six gratuity claims before the 1st respondent is the petitioner herein. The 1st respondent - Controlling Authority passed Ext.P1 to P6 orders directing payment of gratuity with interest at 10% per annum within 30 days of receipt of notice in Form R as prescribed under Rule 17. In addition to that, the Controlling Authority further directed that, if the respondents fail to pay the said amount together with interest within stipulated period, the entire amount will be realised from the respondents together with compound interest at 15% per annum invoking the provisions of the Revenue Recovery Act read with Section 8 of the payment of the Gratuity Act, 1972. The contention of the petitioner is that the direction to pay compound interest at 15% is without jurisdiction. The contention is that the Controlling Authority gets jurisdiction W.P (C) .No. 21575 of 2004 - 2 - to pass such an order only in a separate proceedings initiated under Section 8, if the employer does not comply with the direction issued by the Controlling Authority under Section 7. According to the counsel for the petitioner, there cannot be a composite order under Sections 7 and 8. 2. On the other hand, the learned Counsel for the workman involved would contend that there is nothing wrong in passing such a composite order. Instead of driving poor workmen to litigation again and again, it is certainly permissible for the appellate authority to pass a composite order directing payment of compound interest if the order to pay gratuity as per Section 7 is not duly complied with. 3. I have considered the rival contentions in detail. 4. I find that the impugned orders were passed on 29.5.2003. Admittedly, amounts were paid on 25.8.2003 three months thereafter. Since there is only a difference of W.P (C) .No. 21575 of 2004 - 3 - three months and the interest if at all is only three months and in view of the difficult financial situation of the petitioner - Trust, I think that the interest under Section 8 should be waived. Ordered accordingly. The writ petition is disposed of as above. S.SIRI JAGAN, JUDGE rhs