IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE P.N.RAVINDRAN TUESDAY, THE 22ND MARCH 2011 / 1ST CHAITHRA 1933 WP(C).No. 11369 of 2009(M) -------------------------- PETITIONER(S): --------------- THE CANNANORE CO-OPERATIVE SPINNING MILLS LTD., P.O. BOX NO. 2005, P.O. CHOVVA, KANNUR -6, REPRESENTED BY ITS MANAGING DIRECTOR M.C. SANKARAN. BY ADV. SRI.E.K.NANDAKUMAR SRI.A.K.JAYASANKAR NAMBIAR SRI.K.JOHN MATHAI SRI.P.BENNY THOMAS SRI.ANIL D. NAIR RESPONDENT(S): --------------- 1. A.V. BALAKRISHNAN, S/O LATE KUNHAPPA, AROLI VEETTIL, PULLOOPPI, P.O. KANNADIPARAMBA, KANNUR. 2. THE CONTROLLING AUTHORITY UNDER THE PAYMENT OF GRATUITY ACT, (DISTRICT LABOUR OFFICER) KANNUR 670 594. ADV. SRI.SOJAN MICHEAL FOR R1 SRI.NISHIL.P.S. FOR R1 GOVERNMENT PLEADER SRI.P.M.MANOJ FOR R2 THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 22/03/2011, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: W.P(C)No.11369/2009 APPENDIX PETITIONER'S EXHIBITS: EXT.P1. TRUE PHOTOCOPY OF THE BALANCE SHEET AND PROFIT & LOSS ACCOUNT OF THE PETITIONER FOR THE PERIOD 1ST APRIL 2008 TO 28.2.2009 EXT.P2. TRUE PHOTOCOPY OF THE APPLICATION FOR GRATUITY GC.NO.96/2005 DATED FEBRUARY 2005 FILED BY THE FIRST RESPONDENT. EXT.P3. TRUE PHOTOCOPY OF THE COUNTER DATED 12.8.2005 FILED BY THE PETITIONER IN GC.NO.96/2005 EXT.P4. TRUE PHOTOCOPY OF THE ORDER IN GC.NO.96/2005 DATED 2.2.2009 PASSED BY THE 2ND RESPONDENT. RESPONDENTS' EXHIBITS: EXT.R1(a): TRUE COPY OF THE JUDGMENT IN W.P(C)NO.32557/2007 DATED 23.5.2009 / TRUE COPY / P.S.TO JUDGE P.N.RAVINDRAN, J. ----------------------------------------- W.P(C).No.11369 of 2009 ----------------------------------------- Dated this the 22nd March, 2011 JUDGMENT Ext.P4 order passed by the Controlling Authority under the Payment of Gratuity Act, 1972 directing the petitioner to pay to the first respondent herein the sum of Rs.91,937/- as gratuity together with interest thereon at 10% per annum with effect from 6.12.2004 is under challenge in this writ petition. The main contention raised in the writ petition is that the petitioner's industrial unit was running at a loss and therefore gratuity could not be paid in time. It is stated that this fact was known to the workers and though gratuity was offered without interest to the first respondent, he did not turn up and therefore the petitioner cannot be mulcted with the liability to pay interest. 2. A learned single Judge of this Court has by judgment delivered on 23.5.2008 in W.P(C)No.32557 of 2007 and connected cases filed by the very same petitioner held that the direction to pay interest, which is statutory in nature cannot be interfered with. The learned single Judge however, granted the W.P(C).No.11369 of 2009 -:2:- petitioner two months' time from the date of the judgment to pay the interest portion. In such circumstances I dispose of the writ petition with the following direction. The petitioner shall pay the principal amount of gratuity in terms of Ext.P4 order to the first respondent within one month from today. The interest payable to the first respondent on the principal amount of gratuity shall be paid within two months thereafter. P.N.RAVINDRAN, Judge. ahg. P.N.RAVINDRAN, J. --------------------------- W.P(C).No.11369 of 2009 ---------------------------- JUDGMENT 22nd March, 2011