Dismissed

Union Bank of India v. the Controlling Authority

Kerala HC11 Nov 2022WP(C)/3335/2011

Case brief

AI extract

What is this about?

High Court dismissed a writ petition by Union Bank challenging an order awarding interest on delayed gratuity payment. The court held that statutory interest is mandatory and internal regulatory clauses cannot bypass statutory provisions entitling employees to interest even when gratuity is withheld.

What did the court decide?

Writ petition dismissed and order awarding interest of Rs. 49,523 on delayed gratuity upheld.

Union Bank of India Vs the Controlling Authority — Writ and Judicial Review | Kerala HC (2022)

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IN THE HIGH COURT OF KERALA AT ERNAKULAM

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PRESENT

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THE HONOURABLE MR. JUSTICE AMIT RAWAL

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FRIDAY, THE 11TH DAY OF NOVEMBER 2022 / 20TH KARTHIKA, 1944

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WP(C) NO. 3335 OF 2011

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PETITIONER:

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UNION BANK OF INDIA
VIDHAN BHAVAN MARG, NARIMAN POINT,
MUMBAI-21 REPRESENTED BY ITS AUTHORISED SIGNATORY SENIOR
MANAGER (HR), NODAL REGIONAL
UNION BANK BHAVAN, M.G.ROAD, KOCHI-35.

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BY ADV SRI.A.S.P.KURUP, SC, UBI

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RESPONDENTS:

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1 THE CONTROLLING AUTHORITY ASST.LABOUR COMMISSIONER (CENTRAL), THIRUVANANTHAPURAM-695 001.

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2 THE APPELLATE AUTHORITY & REGIONAL LABOUR COMMISSIONER (CENTRAL), COCHIN-90.

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3 MR.V.RAGHUDHARAN GIRISH MAHAL, EVRA 232, K V ROAD, JAGATHY, THIRUVANANTHAPURAM-695 014.

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BY ADVS.
SRI.G.S.MOHANDAS
SRI.B.RAGHUNATHAN
SMT.P.RETNAKUMARI
SRI.R.SRINATH

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THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON
11.11.2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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WP(C) NO. 3335 OF 2011

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JUDGMENT

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Challenge has been laid on behalf of the bank for awarding the interest regarding the payment of gratuity. The order dated 21.11.2010 under challenge has been passed by the Appellate Authority. Reliance has been laid to the Clause 46(2) of the Union Bank of India (Employees) Pension Regulations, 1995 envisaging that in case of initiation of any departmental proceedings, gratuity shall not be paid to the employee under conclusion. I am afraid that the aforementioned argument cannot be accepted for the reason that the aforementioned clause did not envisage denial of interest except for withholding of the gratuity. Besides the gratuity amount of Rs.3,50,000/-, the interest 49,523/- on the delayed payment of gratuity was awarded. The provisions of the Gratuity Act also envisage the payment of the interest. The statutory provisions cannot be bypassed by law whenever the gratuity is withheld and being sought to be recovered through the procedure initiated under the provisions of the Act. This is what has been done by the employee claiming the gratuity and the reason of

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WP(C) NO. 3335 OF 2011

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withholding it was on account of pending proceedings, but there was no provisions for the sake of repetition in the resolutions withholding interest. I am of the view that the order under challenge is perfectly legal and justified, do not warrant any interference to form a different opinion than the one arrived at. The writ petition is accordingly dismissed.

Sd/-

AMIT RAWAL

JUDGE

nak

WP(C) NO. 3335 OF 2011

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APPENDIX OF WP(C) 3335/2011

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PETITIONER EXHIBITS

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EXHIBIT P1COPY OF COMMUNICATION DATED 31.10.2008 GIVEN
BY BANK TO 3RD RESPONDENT

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EXHIBIT P2COPY OF ORDER DATED 6.1.2010 ISSUED BY
PETITIONER TO 3RD RESPONDENT

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EXHIBIT P3COPY OF ORDER DATED 30.03.2010 ISSUED BY 1ST
RESPONDENT IN GA 5/2009 FILED BY 3RD
RESPONDENT

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EXHIBIT P4COPY OF APPEAL 17.5.2010 FILED BY PETITIONER
BANK BEFORE THE 2ND RESPONDENT

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EXHIBIT P5COPY OF DECISION DATED 3.11.2010 TAKEN BY 2ND
RESPONDENT IN APPEAL
EXHIBIT P6COPY OF ORDER DATED 20.1.2011 PASSED BY THE
2ND RESPONDENT

Union Bank of India v. the Controlling Authority

Case brief

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Union Bank of India v. the Controlling Authority

Case brief

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