Full Judgment
Oral Order:
1. Since the issues arising in the aforesaid two writ applications are same, those were heard analogously and are being disposed of by this common judgment and order.
2. Both the petitioners were serving with the respondent-Gujarat Water Resources Development Corporation. Against both the petitioners, there was a departmental inquiry, which resulted in their exoneration. So far as the petitioner of the Special Civil Application No.3302 of 2008 is concerned, the dispute is with regard to the nonpayment of Gratuity and Contributory Provident Fund (CPF) with interest, and so far as the petitioner of the Special Civil Application No.3303 of 2008 is concerned, the dispute is only with regard to nonpayment of Gratuity with interest.
3. The summary of the two petitions is as under:
(i) Special Civil Application No.3302 of 2008:
Petitioner was Superintendent Engineer with respondent Corporation has filed petition raising grievance for nonpayment of gratuity and Contributory Provident Fund (CPF) with interest.
Petitioner's resignation was accepted with effect from 22.2.2000 (Pg.9 of the Petition).
In a departmental inquiry against the Petitioner, he was exonerated vide order dated 30/9/2004 (pg.10 of the Petition).
Petitioner is entitled to gratuity from the date his resignation came to be accepted.
The respondent Corp. took the stand that the person retiring by resignation is not entitled to gratuity.
U/s. 4(1)(b) of the Payment of Gratuity Act, 1972, gratuity shall be payable to an employee on the termination of his employment.... on his retirement or resignation ?.
Respondent Corp. also paid gratuity with 10% interest to another employee Kaushikbhai V. Soneji.
U/s. 7(3)(A) of the Payment of Gratuity Act, 1972 the employee is entitled to interest from the date on which gratuity becomes payable till the date he is paid, at a simple interest of 10%.
Claim of Gratuity amount with interest:
| Outstanding Gratuity | Date (For Accrual of interest) | Interest @ 10% per annum | Total |
| Rs.1,99,860/-(NOTE: Duration of service is from 31-05-76 to 22-2-2000) | 22/2/2000 to 30/6/2015 | Rs.3,06,385/- | Rs.5,06,245/- |
| Outstanding CPF paid by Respondent on 18/9/2013 (which petitioner accepted without prejudice) | Date (For accrual of interest on CPF) | Interest @ 10% per annum | Total |
| Rs.1,12,322/- | 30/9/2004 [date of Petitioner's exoneration] to 18/9/2013 | Rs.1,01,090/- | Rs.1,01,090/- |
Petitioner was Executive Engineer with respondent Corporation has filed petition raising grievance for non-payment of gratuity.
Petitioner's resignation was accepted with effect from 1/8/1999 (Pg.12 of the Petition).
In a departmental inquiry against the petitioner, he was exonerated vide order dated 30/9/2004.
Petitioner is entitled to gratuity from the date his resignation came to be accepted.
The respondent Corp. took the stand that the person retiring by resignation is not entitled to gratuity.
U/s. 4(1)(b) of the Payment of Gratuity Act, 1972, gratuity shall be payable to an employee on the termination of his employment.... on his retirement or resignation ?.
Respondent Corp. also paid gratuity with 10% interest to another employee Kaushikbhai V. Soneji.
U/s. 7(3)(A) of the Payment of Gratuity Act, 1972 the employee is entitled to interest from the date on which gratuity becomes payable till the date he is paid, at a simple interest of 10%.
The petitioner has been paid CPF amount with compound interest @ 10% pending the petition so CPF and interest claim therein does not survive.
Claim of Gratuity amount with interest:
| Outstanding Gratuity | Date (For Accrual of interest) | Interest @ 10% per annum | Total |
| Rs.1,98,513/-(NOTE: Duration of service is from 1976 to 1/8/1999 | 1/8/1999 to 30/6/2015 | Rs.3,15,834/- | Rs.5,14,347/- |
Both the petitioners had tendered their resignation. It appears that they had tendered the resignation before the departmental inquiry was actually instituted. However, the resignations were accepted subject to the final outcome of the departmental inquiry. The departmental inquiry resulted in complete exoneration of both the petitioners.
5. In such circumstances referred to above, they are entitled to the benefits of Gratuity as well as Contributory Provident Fund.
6. To the aforesaid extent, Mr.D.G.Chauhan, the learned advocate appearing for the respondent-Corporation has no objection. He submitted that the interest may be awarded from the date both the petitioners were exonerated from the departmental inquiry and not from the date of their resignations. Mr.Chauhan further submitted that although both the petitioners have provided the particulars of the amount due and payable towards Gratuity and Contributory Provident Fund, yet the same will be re-calculated and worked out by the department concerned.
7. It is needless to clarify that if there is any error so far as the amount is concerned, the department shall look into the same and determine the exact amount towards the Gratuity and Contributory Provident Fund.
8. So far as the interest part is concerned, since the petitioners were exonerated from the departmental inquiry in toto, I am of the view that they are entitled to the amount of Gratuity with interest from the date their resignations were accepted. The amount of interest shall be calculated accordingly and the composite amount i.e. the principal amount with interest shall be paid to both the petitioners within a period of 8 weeks from the date of receipt of the writ of the order.
9. With the above, both the petitions are allowed. Rule is made absolute to the aforesaid extent.