SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

2006 Supreme(AP) 393

Andhra Pradesh High Court
Judges : L.NARASIMHA REDDY
K.RAMASESHU - Appellant
Versus
HONble LABOUR COURT, GUNTUR, REP.BY ITS Presiding OFFICER - Respondent
Decided On : 03/21/2006
Writ Petition 1499 Of 1997

Advocates:
AMANCHARLA KRISHNA MURTHY, P.Gopal Das, P.NAGESWAR SRI

Headnote:

Industrial Disputes act, 1947 – Compensation Claimed – Petitioner challenges the order passed by the Labour Court – Petitioner initially he was engaged as Newspaper distribution Worker, by father of the writ petitioner, and thereafter, under the petitioner submitted that in has fallen ill and could not discharge his duties from onwards said to have reported to duty to the petitioner 2nd respondent claimed that he was unlawfully retrenched from service without paying any compensation claimed that account. Same amount was claimed towards gratuity for the entire period of his service sum of was claimed towards salary for Sundays and other holidays 2nd respondent died while the was pending, and respondents were brought on record as legal representatives –Held, COMING to the second question, it hardly needs any emphasis that the Payment of Gratuity Act is a self-contained Code it provides for deciding the liability of an employer, to pay gratuity, and the manner of calculation thereof. Section 8 of the Act prescribes the procedure for recovery of amount payable as gratuity reads as under:"section 8: Recovery of gratuity:- If the amount of gratuity payable under this act is not paid by the employer, within the prescribed time, to the person entitled thereto, the controlling authority shall, on an application made to it in this behalf by the aggrieved person, issue a certificate for that amount to the collector, who shall recover the same, together with compound interest thereon from the date of expiry of the prescribed time, as arrears of land revenue and pay the same to the person entitled thereto. Provided that the controlling authority shall, before issuing a certificate under this section give the employer a reasonable opportunity of showing cause against the issue of such certificate provided further that the amount of interest payable underthis section shall, in no case exceed the amount of gratuity payable under this Act – Writ petition is allowed.

( 1 ) THE petitioner challenges the order dated 16-8-1996 passed by the Labour Court, Guntur, in M. P. No. 86 of 1991, filed by the deceased, 2nd respondent. The 2nd respondent filed an application before the Labour Court, Guntur, undersection 33-C (2) of the Industrial Disputes act, 1947 (forshort the i. D. Act ). He pleaded that initially he was engaged as Newspaper distribution Worker, by the father of the writ petitioner, and thereafter, underthe petitioner, for about 60 years. He submitted that in July 1991, he has fallen ill and could not discharge his duties from 15-07-1991 onwards. He is said to have reported to duty, to the petitioner, on 30-07-1991.

( 2 ) THE 2nd respondent claimed that he was unlawfully retrenched from service without paying any compensation. He claimed a sum rs. 13,800/- on that account. Same amount was claimed towards gratuity for the entire period of his service. A sum of Rs. 19. 600/-was claimed towards salary for Sundays and other holidays. The 2nd respondent died while the M. P. No. 86 of 1991 was pending, and respondents 3 to 11 herein were brought on record as legal representatives.

( 3 ) THE petitioner resisted the claim, and pleaded thatthough the 2nd respondent worked under his father, when the agency of newspaper Distribution, was with them, he ceased to be the employee with them, with the closureof distributorship. Objection was raised as to the maintainability of the M. P. No. 86 of 1991. A plea was taken to the effect that, even where any dues of gratuity exist, they cannot be recovered, in proceedings under section 33-C (2 ). Through the impugned order, the Labourcourt allowed the claim for payment of retrenchment compensation and gratuity, amounting to Rs 27,600/- It rejected the claim of Rs. 19,600/-, towards the salary forsundays and other holidays.

( 4 ) SRI P. Nageswara Sree, learned counsel for the petitioner submits that an application under Section 33-C (2) of the I. D. Act is comparable to execution proceedings, and unless there exists a predetermined claim, it cannot be maintained. He contends that the 2nd respondent was not the employee of the writ petitioner and there did not exist any basis for initiation of proceedings. He further submits that the provisions of the Payment of gratuity Act, 1972, cannot be enforced under section 33-C (2) of the I. D. Act.

( 5 ) SRI P. Gopal Das, learned counsel for the respondents 3 to 11, on the other hand, submits that his clients did not challenge the retrenchment as such, and the retrenchment compensation can certainly be claimed in proceedings under Section 33. He contends thatthe I. D. Act is acomprehensive enactment and arrears of gratuity can be claimed in the proceedings initiated under it.

( 6 ) THE 2nd respondent filed an application under Section 33-C (2) of the I. D. Act, and made three claims against the petitioner, viz. , (a) retrenchment compensation of rs. 13,800/- (b) amount payable towards gratuity of rs. 13,800/-, and (c) arrears of salary for Sundays and other holidays of Rs. 19,600/ -. He submitted that he was employed with the petitioner as well as his father, for about 60 years. He specifically pleaded that he was retrenched from service with effect from 15-07-1991 without following the procedure prescribed under Section 25-F of the I. D. Act.

( 7 ) THE 2nd respondent was examined as p. W. 1. He filed Ex. P-1, a copy of the notice issued by him to the petitioner. A reply received thereto, was marked as Ex. P-2. The writ petitioner was examined as R. W. 1, and a person, who worked as Supervisor under him, from 1978, was examined as R. W. 2. The labour Court allowed the first two items of claim, and rejected the third one. Form the submissions made by the learned counsel for the parties, two questions arise for consideration in this writ petition, viz. , (1) Whether application under section 33-C (2) of the I. D. Act is maintainable to challenge the retrenchment, and (2) Whether the amount payable towards grat













Click Here to Read the rest of this document

1
2
3
4
5
6
7
8
9
10
11
SupremeToday Portrait Ad
supreme today icon
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon Back to top