P.Muthu v. The Additional Commissioner of Labour

ORDER The present Writ Petition has been filed seeking issuance of a Writ of Mandamus directing the respondents 3 and 4 to dispose the petitioners' representation dated 24.09.2025 and consequently to recover the compound Page7 of 12 interest at the rate of 15% per annum on the principal amount for the period from 22.11.2018 to April, 2026, and further to recover the same from the 5th respondent under Section 8 of the Revenue Recovery Act.

¶2Heard the learned counsel appearing on either side and perused the materials on record.

¶3The learned counsel for the respondents placed reliance upon the judgment of the Hon'ble Division Bench of this Court dated 21.11.2023 in W.A.Nos.3200 of 2023, etc. batch, wherein, the Division Bench affirmed the order of the learned Single Judge granting 15 days' wages as gratuity for every completed year of service along with interest at the rate of 10% per annum for delayed payment of gratuity under the Payment of Gratuity Act, 1972. However, it is seen that subsequently, the authority constituted under the Gratuity Act viz., Deputy Commissioner of Labour, Chennai, vide proceedings in D1/5762/2023 dated 11.07.2024 has passed the following order:- Whereas the Controlling Authority under the Payment of Gratuity Act, 1972 in his PG. 138/14 to 167/14, Dated 24.04.2018, has determined the below sum mentioned in annexure given below with 10% simple interest as Gratuity amount payable to M/s.Madurandagam Co-Operative Sugar Mills Limited, Padalam, Kanchipuram District and whereas under the said order, the Page8 of 12 Management should have paid the said amount to Thiru.Pasupathi and 29 Others within 30 days from the date of receipt of orders and the above orders have been sent to the Management and whereas an application was made to the Authority by Thiru.Pasupathi and 29 Others to settle the Gratuity amount as ordered by the Authority. Earlier Payment of Gratuity/amount had been disbursed to certain members. The Authority is satisfied that the interest amount as mentioned in the annexure below is due from the Management and therefore in exercise of the powers conferred under Section 8 of the Act, the Authority hereby certifies that the sum as mentioned below with 15% compound interest so due to Thiru.Pasupathi and 29 Others shall be recoverable as arrears of land revenue from the above said Management. The Collector of Kanchipuram is requested to recover the said amount with 15% compound interest from the defaulting Management as the same is situated within the limits of Kanchipuram District and to deposit the amount to this Office by way of Demand Draft in favour of Deputy Commissioner of Labour, O/o. Joint Commissioner of Labour-II, Chennai – 600 006." The said order has not been challenged by the respondents. Therefore, the respondents Management are bound to pay interest at the rate of 15% per annum for the delayed payment of gratuity in the light of the above proceedings dated 11.07.2024. Page9 of 12

¶4The learned counsel for the petitioners submitted that the interest at the rate of 10% had already been deposited and the remaining interest amount at the rate of 5% per annum is yet to be paid.

¶5In view of the foregoing, the respondents are directed to pay the balance interest at the rate of 5% p.a. within a period of two (2) months from the date of receipt of a copy of this order.

¶6With the above direction, this Writ Petition stands disposed of. There shall be no order as to costs. 08-06-2026 Asi To

¶1The Additional Commissioner of labour (Appellate Authority under the payment of Gratuity act 1972) DMS Compound, VI Floor, Teynampet, Chennai -600 018

¶2The Assistant Commissioner of Labour (Additional Charge) (Controlling Authority under the payment of Gratuity Act 1972), Teynampet, Chennai-600 018. Page10 of 12

¶3The District Collector Chengalpattu District.

¶4The Tahsildar Maduranthagam Taluk, Chengalpattu District.

¶5M/s.Maduranthagam Co-operative Sugar Mills Ltd. Rep. by its Managing Director S.Lakshmi having office at Padalam, Maduranthagam Taluk, Chengalpattu District. Page11 of 12

P.T.ASHA, J. Asi 08-06-2026 Page12 of 12

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 08-06-2026 CORAM THE HON'BLE MS. JUSTICE P.T. ASHA 1. P.Muthu C/o.R.venkatesan, 2. P.Aabel 3. P.Mari 4. J.Krishnan Page1 of 12 5. C.Kanniappan 6. Chokalingam 7. M.Krishnan 8. M.Chinnapaiyan 9. A.Krishnan 10.P.K.Vijayakumar Page2 of 12 11.A.Gunasundari, 12.P.madurai 13.N.Gnanamani 14.J.Alammal 15.M.Thanikachalam Page3 of 12 16.Epsi Violate 17.Raji 18.M.jayamani 19.S.Rajeshwari 20.C.Bharathirajan Page4 of 12 21.R.Rani 22.Anjalai 23.Pachammal 24.M.Venkatesan 25.P.Lakshmi (w/o.Pasupathi(late)) Page5 of 12 26.Alamelu (w/o.k.elumalai (late)) 27.T.babu (s/o.kalavathi (late)) 28.Kesavan (s/o.Kanchana) ..Petitioner(s) Vs 1. The Additional Commissioner of labour (Appellate Authority under the payment of Gratuity act 1972) DMS Compound, VI Floor, Teynampet, Chennai -600 018 2. The Assistant Commissioner of Labour (additional charge) (Controlling Authority under the payment of Gratuity Act 1972), Teynampet, Chennai-600 018 3. The District Collector Chengalpattu District. Page6 of 12 4. The Tahsildar Maduranthagam Taluk, Chengalpattu District. 5. M/s.Maduranthagam Co-operative Sugar Mills Ltd. Rep. by its Managing Director S.Lakshmi having office at Padalam, Maduranthagam Taluk, Chengalpattu District. ..Respondent(s) PRAYER: The Writ Petition is filed under Article 226 of the Constitution of India seeking the issuance of a Writ of Mandamus directing the respondents 3 and 4 to dispose the petitioners representation dated 24.09.2025 and consequently recover the recover 15 percent of compound interest of amount from 22.11.2018 to April 2026 and recover the same under section 8 of RR Act from the 5th respondent. For Petitioner(s): Mr. D.Bharathy For Respondent(s): Mr. K. Sathish, Government Advocate for R1 to R4 Mr. P. Hari Babu, Standing Counsel for R5