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2024 Supreme(AP) 933

IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI
G. NARENDAR, HARINATH N., JJ.
The Chairman and Others – Appellants
Versus
N. Suryanarayana Sastry and Others – Respondents
Writ Appeal Nos. 39, 40, 41, 42, 43, 44, 45 of 2024
Decided On : 08-05-2024

Advocates:
Advocate Appeared:
For the Appellant : A. Veeraswamy.
For the Respondent: V.V. Prabhakara Rao.

IMPORTANT POINT
Writ petitions are not maintainable when an alternative statutory remedy exists under the Payment of Gratuity Act for resolving gratuity disputes.

Headnote:

Maintainability - Writ Petitions - Payment of Gratuity Act, 1972 - Section 7 - The court emphasized the necessity of exhausting alternative remedies provided under the Payment of Gratuity Act before resorting to writ petitions, affirming the exclusive jurisdiction of the Controlling Authority in gratuity disputes.

Fact of the Case:

The petitioner sought a writ of mandamus for the payment of gratuity and earned leave encashment from the District Cooperative Central Bank, claiming entitlement based on service regulations after completing over five years of service.

Finding of the Court:

The court found that the Writ Petition was not maintainable due to the existence of an alternative remedy under the Payment of Gratuity Act, which provides a statutory process for resolving gratuity disputes.

Issues: Whether the Writ Petition was maintainable given the existence of an alternative remedy under the Payment of Gratuity Act.

Ratio Decidendi: The court held that the computation of gratuity and related disputes fall under the exclusive jurisdiction of the Controlling Authority as per Section 7 of the Payment of Gratuity Act, making the writ petition inappropriate.

Result: The Writ Appeal is allowed, and the Writ Petition is rejected for lack of maintainability.

JUDGMENT :

G. NARENDAR, J.

1. When these Appeals were listed yesterday i.e. 07.05.2024, they were heard. It was pointed out that the Writ Petitions themselves are not maintainable. A copy of the judgment, dated 22.02.2024 and rendered in W.A. No. 102 of 2024, by a Coordinate Bench of this Court was furnished to the Respondents Counsel. The Coordinate Bench while disposing of the said Appeal has placed reliance on the Judgment of the Hon’ble Apex Court in S.S. Rana v. Registrar of Cooperative Societies, (2006) 11 SCC 634. Learned Counsel for the Respondents had sought time on the ground that he would secure instructions.

2. When these Appeals are called today, initially, there is no representation on behalf of the Respondents. Later, Sri K.G. Krishna Murthy, learned Senior Counsel, appearing on behalf of the Respondents, came and prays time to examine the said judgment of the Coordinate Bench rendered in W.A. No. 102 of 2024, dated 22.02.2024.

3. The relevant portion of the said judgment in W.A. No. 102 of 2024, dated 22.02.2024, rendered by the Coordinate Bench reads as follows:

“2. The appellant i.e. the District Cooperative Central Bank Ltd. is before this Court being aggrieved by the Order passed by the Learned Single Judge in W.P. No. 39157 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 dated 11.01.2013 as well as the inaction on the part of the 2nd to 4th respondents in acting on the petitioners representations dated 17.09.2018 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 Gratuity and Encashment of Earned Leave of the petitioner 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 the relief in the following manner and the relevant Paras 10 to 12 of the order read 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 01.03.2009 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 02.09.2009 and retired on 30.03.2016 (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, dated 20.02.2009, 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 dated 31.10.2022.”

4. On a reading of P

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