High CourtsSINGLE BENCH(2017) 05 PAT CK 0040

The General Manager (Region), Food Corporation of India vs The Union of India

Patna High Court · Decided on 12 May 2017

HON’BLE JUDGES
Ashwani Kumar Singh
RESULT
Dismissed
CASE NUMBER
8619 of 2016

AI Structured Summary

Not yet generated for this judgment

Judgment

68 paragraphs · 660 words
1.

Heard Mr. P.K. Verma, learned Senior Advocate

appearing on behalf of the petitioner and Mr. Anshuman Singh,

learned Advocate appearing on behalf of the Union of India and

perused the impugned order passed by the appellate authority.

2.

This writ application has been filed against the

order of the Appellate Authority under the payment of Gratuity Act,

1972 (for short ''the Act'') dated 21/22.05.2015 passed in Appeal

Case No.36/7/2015 Appeal/RLC whereby the appeal of the

petitioner filed against the order dated 3/7th January, 2014 passed by

the Assistant Labour Commissioner-cum-Controlling Authority in

file No.48/ 1(12) / 2013/ALC-I by which the petitioner has been

directed for making payment of gratuity with interest to the

respondent No.4 has been dismissed.

3.

The Appellate Authority has dismissed the

appeal filed by the petitioner under sub-section (7) of Section 7 of

the Act on the ground that the petitioner failed to deposit the

amount of gratuity with interest as directed by the Controlling

Authority.

4.

Mr. P.K. Verma, learned Senior Advocate

appearing on behalf of the petitioner submitted that the amount of

gratuity with interest as directed by the Controlling Authority was

not an admitted amount and thus in view of sub-section (4)(a) of

Section 7 of the Act, the petitioner was not required to deposit the

amount.

5.

The argument advanced by the learned Senior

Advocate for the petitioner for not depositing the amount either

with the Controlling Authority or the Appellate Authority cannot be

accepted.

6.

The second proviso to sub-section (7) of Section

7 of the Act clearly mandates that no appeal by an employee shall

be admitted unless at the time of preferring the appeal, the appellant

either produces a certificate of the Controlling Authority to the

effect that the appellant deposited with him an amount equal to the

amount of gratuity required to be deposited under sub-section (4) or

deposits with the Appellate Authority such amount. Simply because

the petitioner disputes the amount, the same cannot be a ground for

not depositing the same.

7.

It would be evident from second proviso to sub-

section (7) of the Section 7 of the Act that the deposit of amount

ordered by the Controlling Authority is a pre-condition to entertain

an appeal. The Appellate Authority cannot admit an appeal unless at

the time of preferring an appeal, the appellant either produces a

certificate of the Controlling Authority to the effect that the

appellant has deposited with the authority an amount like to the

amount of gratuity required to be deposited under sub-section (4) of

section 7 of the Act. Thus, the second proviso to sub-section (7) of

Section 7 of the Act clearly prohibits admission of the appeal in

absence of the due compliance of the necessary requirements

mentioned therein.

8.

True, it is that clause (a) of sub-section (4) of

Section 7 provides that if there is any dispute to the amount of

gratuity payable, the employer is required to deposit with the Controlling Authority such amount as he admits to be payable by

him as gratuity. However from a bare reading of clauses (b) (c) (d)

and (e), it would be evident that under any circumstance the deposit

of the gratuity amount, whether disputed or undisputed cannot be

postponed for any reason. From the language of sub-section (7) of

Section 7, it is absolutely clear that the appellant is required to

deposit the amount of gratuity as directed by the Controlling

Authority while filing an appeal. In case of failure to deposit the

amount within the statutory period prescribed under the Act, the

Appellant cannot invoke the vested right to appeal, as the same is a

pre-condition to entertain an appeal.

9.

Thus, if the Appellate Authority has dismissed the

appeal on the ground of non-deposit of the amount of gratuity

required to be deposited under the Act, no illegality can be found

with the order impugned.

10.

The writ application, being devoid of any merit,

is dismissed.