Y.K. SINGLA versus PUNJAB NATIONAL BANK & ORS.

Y.K. SINGLA versus PUNJAB NATIONAL BANK & ORS.

The Payment of Gratuity Act, 1972 applies notwithstanding the Pension Regulations, 1995, and entitles the employee to interest on delayed payment of gratuity from the date it became due on retirement, as the 'fault' proviso is not satisfied; thus, interest cannot be denied for the period withheld due to pendency of criminal proceedings when employee is acquitted.

Parties
Appellant: Y.K. Singla; Respondents: Punjab National Bank & Ors.
Jurisdiction
India
Judgment Date
14 December 2012
Procedural Posture
Civil Appeal / Final Disposition by Supreme Court
Outcome
Appeal disposed of: Appellant entitled to interest on delayed gratuity payment from retirement date.
Legal Topics
Gratuity, Retiral Benefits, Interest on Delayed Payment, Overriding Effect of Statute, Pension Regulations
Labour and Employment Law Gratuity Retiral Benefits Interest on Delayed Payment Overriding Effect of Statute Pension Regulations

Case Brief

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Parties

Y.K. Singla

Appellant

Punjab National Bank & Ors.

Respondents

Procedural Posture

Civil Appeal / Final Disposition by Supreme Court

Legal Issues

  1. 1 Whether interest is payable to employee on withheld gratuity from the date of retirement when criminal proceedings were pending and subsequently acquitted
  2. 2 Whether Payment of Gratuity Act, 1972 overrides provisions of Punjab National Bank (Employees) Pension Regulations, 1995 regarding payment of interest on delayed gratuity

Ratio Decidendi

The Payment of Gratuity Act, 1972 applies notwithstanding the Pension Regulations, 1995, and entitles the employee to interest on delayed payment of gratuity from the date it became due on retirement, as the 'fault' proviso is not satisfied; thus, interest cannot be denied for the period withheld due to pendency of criminal proceedings when employee is acquitted.

Court Disposition

Appeal disposed of: Appellant entitled to interest on delayed gratuity payment from retirement date.

Orders

  • Punjab National Bank directed to pay appellant interest at the rate notified by the Central Government for repayment of long term deposits as provided under s.7(3A) of Gratuity Act; if not notified, interest at 8% as awarded by Single Judge of High Court.
  • Interest to be paid within one month from appellant furnishing certified copy of Supreme Court order.