CHARAN SINGH vs BIRLA TEXTILES & ANR.

The Supreme Court held that under the Payment of Gratuity Act, 1972, specifically Section 7 and Section 8, interest on gratuity is only admissible when the Collector issues a certificate for recovery of dues as a public demand. In this case, the appellant was not entitled to interest on gratuity since he had not applied for recovery to the Collector, and the appellate authority's decision to vacate the interest order was upheld. The Court clarified that the provisions of the Interest Act and Section 34 of the Code of Civil Procedure do not apply as the controlling authority is not a court and no notice was given demanding interest.