10.07.2026 Ct. No. 30 S.L. No. 6 SM WPA 15135 of 2026 Punjab National Bank & Anr. Versus Union of India & Ors. Mr. Abhishek Banerjee Ms. Parna Roy Choudhury ..…for the petitioner/Bank Ms. Anindita Maity Ms. Priyanka Ganguly ….for the UOI Mr. Debrup Bhattacharya Mr. Siddhartha Singh …….for the respondent no. 5 1. Affidavit-of-service filed be kept with the record. 2. The writ application has been preferred challenging orders dated 05.12.2025 passed by the respondent no. 3 and its subsequent Recovery Certificate 17.03.2026 issued by the respondent no. 3 Controlling Authority under Section 8 of the Payment of Gratuity Act, 1972. 3. On hearing the learned counsels for the parties and on perusal of the materials on record including the impugned orders, it appears that admittedly the petitioner has paid a sum of Rs. 10 lakhs as gratuity and a further sum of 10 lakhs towards interest as per Section 7(3A) of the Payment of Gratuity Act. The demand notice has been raised for a further sum of Rs. 3,87,397/- being the outstanding amount of simple interest on the amount of gratuity. 2 4. It is the contention of the petitioner that they are not liable to pay interest on an amount exceeding the amount of gratuity and as such have preferred an application before the authority concerned vide a letter dated 31.12.2025. 5. It appears from the record, that vide an order dated 05.12.2025, the Controlling Authority (Central) has clarified as to the said excess amount of gratuity by stating that the maximum amount of gratuity which cannot exceed the principle amount is applicable only when the matter is decided under Section 8 of the Payment of Gratuity Act. 6. It is contented that in the present case the amount which has been directed to be paid is under Section 7(3A) of the Payment of Gratuity Act and is a case of simple interest. 7. In the present case, admittedly simple interest at the rate of Rs. 10% was granted on the principle amount by the authority concerned. Subsequent to the order dated 05.12.2025 and an application preferred by the petitioner herein on 31.12.2025, a Co-ordinate Bench of this Court in WPO 59 of 2017 filed by the private respondent/employee herein, delivered a judgment on 31.03.2026 wherein the Court along with other reliefs directed the petitioner herein to pay interest at the rate of 6% per annum, on the amount of gratuity and leave encashment. 3 8. Considering the said final judgment of the Co- ordinate Bench against which no appeal has been preferred by either of the parties till date, this Court is of the view that the petitioner’s application dated 31.12.2025 is required to be considered in the light of the amount of interest on as gratuity granted by the High Court in WPO 59 of 2017. 9. Accordingly, the authority concerned being the Controlling authority (Central) herein shall consider the application dated 31.12.2025 in the light of the judgment of the High Court in WPO 59 of 2017 dated 31.03.2026 and shall calculate afresh the quantum of simple interest which has to be paid by the petitioner to the respondent at the rate of 6% as granted by the High Court instead of the 10% which has been granted by the Controlling Authority. 10. The application be decided within a period of 30 days from the communication of this order. 11. Writ application stands disposed of. 12. Applications, if any, connected thereto stand disposed of consequently. 13. Interim order, if any, stands vacated. 14. Photostat certified copy of this order, if applied for, be given to the parties on priority basis upon compliance of all formalities. [Shampa Dutt (Paul). J]