CHARAN SINGH versus BIRLA TEXTILES & ANR.

CHARAN SINGH versus BIRLA TEXTILES & ANR.

The appellant is not entitled to interest on the amount of gratuity found due to him because the stage for action under section 8 had not been reached, as he had not applied to the Collector for recovery. No statutory provision existed in the Act for grant of interest prior to Act 22 of 1987, which has only prospective effect.

Parties
Appellant: Charan Singh; Respondent: Birla Textiles; Respondent: Birla Textiles & Anr.
Jurisdiction
India
Judgment Date
31 August 1988
Procedural Posture
Civil Appeal / Supreme Court Appeal by Special Leave
Outcome
Appeal dismissed
Legal Topics
Payment of Gratuity, Interest on Delayed Gratuity
Labour Law Payment of Gratuity Interest on Delayed Gratuity

Case Brief

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Parties

Charan Singh

Appellant

Birla Textiles

Respondent

Birla Textiles & Anr.

Respondent

Procedural Posture

Civil Appeal / Supreme Court Appeal by Special Leave

Legal Issues

  1. 1 Whether the appellant is entitled to interest on gratuity payable under the Payment of Gratuity Act, 1972, for the period before approaching the Collector under Section 8

Ratio Decidendi

The appellant is not entitled to interest on the amount of gratuity found due to him because the stage for action under section 8 had not been reached, as he had not applied to the Collector for recovery. No statutory provision existed in the Act for grant of interest prior to Act 22 of 1987, which has only prospective effect.

Court Disposition

Appeal dismissed

Orders

  • There would be no order for costs.