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2024 Supreme(AP) 262

IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI
G.Narendar, Nyapathy Vijay, JJ.
Potti Sriramulu Nellore Dist.Co-op.Central Bank Ltd. - Appellant
Versus
S.Viswanath Reddy - Respondent
W.A. No. 61 of 2024
Decided On : 22-02-2024

The central legal point established in the judgment is the exclusive domain of the Controlling Authority for adjudication of disputes related to gratuity under Sec. 7 of the Payment of Gratuity Act, 1972.

Headnote:

Gratuity - Employees' Terminal Benefits - Sec. 7 of the Payment of Gratuity Act, 1972 - The court discussed the entitlement of terminal benefits to employees and the applicability of Sec. 7 of the Payment of Gratuity Act, 1972, emphasizing the exclusive domain of the Controlling Authority for adjudication of disputes related to gratuity.

Fact of the Case:

The appellants, employees of the District Cooperative Central Bank Ltd., sought a writ of mandamus to declare the non-payment of terminal benefits as illegal and to direct the bank to pay the outstanding amounts of gratuity and encashment of earned leave.

Finding of the Court:

The court found that the appellants, having completed 5 years of service, were entitled to terminal benefits as per the service regulations. However, the court emphasized the exclusive domain of the Controlling Authority for adjudication of disputes related to gratuity under Sec. 7 of the Payment of Gratuity Act, 1972.

Issues: The issues involved the entitlement of terminal benefits to the employees and the maintainability of the writ petition in light of the availability of an alternative remedy under Sec. 7(4) of the Act.

Ratio Decidendi: The court held that the act of computing dues and adjudicating disputes related to gratuity falls within the exclusive domain of the Controlling Authority under Sec. 7 of the Act, rendering the writ petition not maintainable.

Final Decision: The Writ Appeal was allowed on the ground of maintainability, setting aside the order of the Learned Single Judge and rejecting the Writ Petition. The appellants were not precluded from approaching the Competent/Controlling Authority for adjudication of their claims regarding non-payment of gratuity.

JUDGMENT

G.NARENDAR, J. - Heard Sri Siva Prasad Reddy Venati, Learned Counsel for the Appellants and Sri Syed Arif Basha, Learned Counsel and Learned G P (S-I) appearing for the Respondents.

2. The appellants, who are the employees of the District Cooperative Central Bank Ltd., are before this Court being aggrieved by the Order dtd. 10/5/2023 passed by the Learned Single Judge in W.P.No.44903 of 2018. The Learned Single Judge by the order impugned has been pleased to appreciate the following prayer.

"to issue an order or direction more particularly in the nature of Writ of Mandamus declaring the action of the 3rd respondent Bank in not paying the terminal benefits i.e., Gratuity for 20 months and Encashment of Earned Leave for 240 days to the petitioner after adjustment of amount already paid in accordance with Clause 3 of Memorandum of Intent dtd. 11/1/2013 as illegal, arbitrary, unjust and violative of Articles 14, 19 and 21 of the Constitution of India and consequently direct the 3rd respondent Bank to pay the amount of Rs.6, 37, 631.00 (Rupees Six Lakhs Thirty Seven Thousand Six Hundred Thirty One), due towards the balance amounts of Gratuity and Encashment of Earned Leave, payable to the petitioner in accordance with Clause 3 of Memorandum of Intent dtd. 11/1/2013 and as per the Service Regulations of the 3rd respondent Bank and pass such other order or orders."

3. While appreciating the same, the Learned Single Judge has been pleased to grant relief in the following manner and the relevant paras 10 to 12 of the order reads as under:-

"10. Paragraph No.12 of the Judgment passed in W.A. No.139 of 2023 reads thus:

12) Therefore, from a reading of this Memorandum of intent it is clear that terminal benefits to Special Category Assistants, who were taken into services as on 1/3/2009 and thereafter rendered 5 years of service are as per the Point No.1, for the others like the writ petitioner Point No.3 is applicable. Admittedly, the writ petitioner joined the bank on 2/9/2009 and retired on 30/3/2016 (para 11 of the counter affidavit). Therefore, it is clear that the writ petitioner has completed 5 years of service and is, therefore, entitled to terminal benefits as per the service regulations.

11. As per the orders passed in W.P.No.28820 of 2018 as well as W.A.No.139 of 2023, the employee who has completed 5 years of service in the Bank (DCCB) is entitled for 20 months Gratuity and 240 days Encashment of Earned Leave. In the present case, the petitioner was recruited by the 3rd respondent in the year 1978 as a Paid secretary under the "Half a Million Jobs Programme". In pursuance of G.O.Ms.No.67, dtd. 20/2/2009, the petitioner was reverted back to the service of the 3rd respondent as Special Category Assistant and thereafter petitioner was retired from service on 31/12/2016. Thus, the petitioner has completed more than 5 years of service in the Bank. Therefore, the petitioner has come into zone of consideration for the entitlement of 20 months Gratuity and 240 days Encashment of Earned Leave.

12. The issue involved in this petition is squarely covered by the order of this Court in W.P.No.28820 of 2018 dtd. 31/10/2022."

4. On a reading of para 12, it is seen that the Learned Single Judge has been pleased to place reliance on the order passed by a Learned Single Judge of this Court rendered in W.P.No.28820 of 2018, dtd. 31/10/2022, against which W.A.No.139 of 2023 has been preferred. Copies of the orders in W.P.No.28820 of 2018 and in W.A.No.139 of 2023 are enclosed along with the material papers of this Writ Appeal.

5. It is stated that the Learned Single Judge in W.P.No.28820 of 2018 proceeded to compute the dues and issued directions for payment of the same. Aggrieved thereby, W.A.No.139 of 2023 has been preferred. A Coordinate Bench of this Court has been pleased to affirm the orders of the Learned Single Judge and in Para 16, it placed reliance on the ruling in S.S. Rana vs. Registrar of Cooperative Societies., (2006) 11 SC

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