Jyotishbhai Govindprasad Thakore vs Bank Of India

A.S. Supehia, J

In the order dated 23.08.2016, this Court has recorded that the petitioner has been paid the amount of gratuity as well as the amount of provident

fund. The petitioner has filed affidavit stating that an amount of Rs.58,195=58 towards the payment of provident fund and the amount of Rs.22,500/-

towards the gratuity was paid on 09.12.2015 and 08.12.2015 respectively.

Learned advocate Mr.Dipen Desai, appearing for the petitioner has submitted that the petitioner was terminated on 18.08.1987 and despite his

termination, he was entitled for the aforesaid amount from 18.08.1987 and since such amount has been paid belatedly, the petitioner is entitled to at

least 10% interest for the period of 27 years.

In response to the aforesaid submissions, learned advocate Mr.Nirav Joshi, appearing for the respondent-Bank has submitted that the petitioner

would be entitled to interest on the provident fund as per the Provident Fund Regulations of the concerned Bank from 07.03.2005, as he has filed

application claiming the said amount from such date. So far as the amount of gratuity is concerned, he has submitted that the petitioner would be

entitled to 10% interest from the year 2005, as per the provisions of Section 7 of the Payment of Gratuity Act. Reliance is placed by him on Section

4(6) of the Payment of Gratuity Act, which empowers the employer to withdraw the gratuity amount who was been terminated from service after

issuing notice, however he has very fairly submitted that in this case, no notice was issued by the respondent-Bank and, therefore, the respondent-

Bank had to pay the gratuity amount to the present petitioner. No further submissions are advanced.

The facts stated hereinabove are not in dispute. The petitioner was terminated on 18.08.1987 and the amount of Provident Fund and gratuity, as

stated hereinabove, have been paid in the year 2015, that too after filing of the present writ petition.

It appears that the petitioner was agitating his termination before the Appellate Court and thereafter before this Court also. The petitioner has filed

Special Civil Application No.6626 of 1988 challenging his termination, which was decided by the order dated 27.12.2000 against him. Thus, the

termination of the petitioner has become final.

During the pendency of the petition, the petitioner has been paid amount of provident fund i.e. Rs.58,195=58 on 09.12.2015 and the amount of

gratuity Rs.22,500/- on 08.12.2015. The petitioner is claiming 10% of interest on such amount, though in the prayer clause he has prayed for 12%,

however, on the instructions received by learned advocate Mr.Dipen Desai, the petitioner has restricted the same to @ 10%.

The established fact from the aforenoted submissions is that, the petitioner was entitled to the Provident Fund and Gratuity at the time of his

termination. i.e. on 18.08.1987. The payment of the aforesaid amounts on termination is not disputed. The only dispute, which is raised is with regard

to the date of payment of interest on such amount. Though, the petitioner was legally entitled to such amounts, he was not paid the same and the

amount has been withheld without any authority of law. The contention raised by the respondent with regard to the payment of interest from the date

of filing of the application. i.e. in the year 2005 does not merit acceptance, since the respondent-Bank was under an obligation to immediately pay such

amount after the termination. For all these years the amount has been lying with the respondent-Bank, which may have been utilized by it.

So far as the interest on P.F. amount is concerned, it is submitted by learned advocate Mr.Joshi that interest would be available as per the Provident

Fund Regulations of the Bank, however he is not having specific instructions with regard to the actual rate of interest to be paid on the provident fund.

Thus, under the circumstances, since no actual provision is pointed out before this Court with regard to the payment of interest on the provident fund

amount, the respondent-Bank is directed to pay 10% interest on the amount of Rs.58,195=58 from 01.01.1988 instead of the date of termination i.e.

18.08.1987. It is clarified that if as per the regulations of the Bank, the petitioner is entitled to more interest than 10%, viz. 12%, on the provident fund

amount of Rs.58,195=58 then the amount shall be paid on such enhanced interest. The respondent-Bank is directed to examine the case accordingly

and if the regulations suggest of payment of less than 10% interest, then the Bank is directed not to award such interest, as the petitioner has been

waiting for more than 25 years for payment of the provident fund amount.

With regard to the payment of interest on gratuity amount is concerned, it is an admitted fact that the petitioner is entitled to 10% interest. The amount

of interest was also withheld by the respondent-Bank without any authority of law and only when the petitioner has filed the petition, such amount is

paid. Thus, the respondent-Bank is directed to pay 10% interest on the gratuity amount from 01.01.1988.

The respondent-Bank is directed to pay interest at the rate of 10% per annum from 01.01.1988, instead of 18.08.1987 till the actual payment of the

aforesaid amounts i.e. 09.12.2015 (provident fund) and 08.12.2015 (gratuity).

Necessary orders in terms of the above directions shall be passed within a period of one month from the date of receipt of writ of this order.

This writ petition is allowed accordingly. Rule is made absolute to the aforesaid extent. Direct service is permitted.