IN THE HIGH COURT OF BOMBAY
D.Y. Chandrachud, J.
GURUNATH VITHAL TAMSE - Appellant
Vs.
NATIONAL TEXTILE CORPORATION (N.M.) - Respondent
O.O.C.J. W.P. No. 851 of 2001
Decided on : 06-06-2001
Gratuity - Dispute arising from non-payment of gratuity - Payment of Gratuity Act, 1972, Section 4, Section 7 - The court held that the employer is under a statutory duty to pay the gratuity due and payable to the employee on attaining the age of superannuation. The court also emphasized that there is no specified period of limitation for moving the Controlling Authority in relation to a claim for the payment of gratuity.
Fact of the Case:
The Petitioner, a former employee of a nationalized mill, filed an application for the payment of gratuity which was dismissed on the ground of limitation. The dispute arose from non-payment of gratuity after the Petitioner's retirement.
Finding of the Court:
The court found that the impugned orders dismissing the application for gratuity cannot be sustained as the employer had a statutory duty to pay the gratuity due and outstanding to the Petitioner upon his attaining the age of superannuation.
Issues: The main issue was whether the application for payment of gratuity was rightly rejected on the ground of limitation.
Ratio Decidendi: The court held that the employer is under a statutory duty to pay the gratuity due and payable to the employee on attaining the age of superannuation, and there is no specified period of limitation for moving the Controlling Authority in relation to a claim for the payment of gratuity.
Final Decision: The Writ Petition was allowed, and the impugned orders were quashed and set aside. The Controlling Authority was directed to reconsider the application for payment of gratuity afresh and pass a fresh order on merits within a period of 8 weeks.
JUDGMENT :
D.Y. Chandrachud, J.—Rule. Returnable forthwith. The learned counsel for the Respondent waives service.
2. The Petitioner worked in the India United Mills since April 9, 1963. The Mill was nationalised and taken over by the Respondent in 1974. The Petitioner was dismissed from service and the dispute between the parties ultimately culminated in an order dated July 7, 1992, passed by this Court in Writ Petition Nos. 4898 of 1984 and 840 of 1985 by which the Respondent was directed to pay the back wages to the Petitioner from April 1, 1974 until June 30, 1991 when he attained the age of 60 years. The dispute in the present case arises out of an application filed by the Petitioner before the Controlling Authority under the Payment of Gratuity Act, 1972 for the payment of gratuity. That application was dismissed by the Controlling Authority by an order dated April 26, 1999. the Controlling Authority held that as a matter of fact, the gratuity amount of Rs. 27,487/- had not been paid to the Petitioner. It is sought to be urged on behalf of the Respondent that the amount of gratuity had been paid but the Controlling Authority has found that this was not in fact the case. However, the application of the Petitioner for the payment of gratuity was rejected on the ground of limitation as the Controlling Authority has held that the application which has been filed on August 5, 1994 was beyond the period of three years computed from June 30, 1991. The order of the Controlling Authority was sustained in appeal on September 2, 2000, the Appellate Authority inter alia holding that the appeal itself had been filed beyond the period of limitation of 60 days.
3. Having heard the learned counsel for the Petitioner and the Respondent, I am of the view that the impugned orders cannot be sustained. The admitted position is that the dispute relating to termination of service of the Petitioner was pending in this Court in Writ. Petition Nos. 4898 of 1984 and 840 of 1985. These Writ Petitions which were filed respectively by the National Textile Corporation and the Petitioner against the order of the Industrial Court were disposed of on July, 7, 1992 by a learned single Judge of this Court. While disposing of the writ petitions, the learned single Judge directed that the Petitioner be paid his back wages until June 30, 1991 which was the date on which he attained the age of superannuation, together with all consequential benefits. The application which was filed before the Controlling Authority was admittedly preferred on August 5, 1994. Indeed, while passing orders on the pending Writ Petitions, the learned single Judge was of the view that the Petitioner should be treated as having retired with effect from July 1, 1991 on which date, he would attain the age of superannuation of 60 years although under the Standing Orders, he could have worked, if physically fit, until the age of 63 years.
4. In these circumstances, it was clearly the obligation and duty of the Respondent to pay the gratuity due and outstanding to the Petitioner. u/s 4 of the Payment of Gratuity Act, 1972, the employer is under a statutory duty to pay the gratuity due and payable to the employee, inter alia, on his attaining the age of superannuation Sub-section (2) of Section 7 of the Act in fact, posits that the employer shall as soon as gratuity becomes payable, whether an application has been made or not, determine the amount of gratuity and give a notice in writing to the employee and to the controlling authority specifying the amount of gratuity so determined. Under Sub-section (3) the employer is to arrange to pay the amount of gratuity within 30 days from the date it becomes payable. Sub-section (4) of Section 7 contemplates that an application can be made to the Controlling Authority where a dispute arises inter alia in relation to a claim for the payment of gratuity. Significantly, the Legislature has not advisedly specified any particular period of limitation for mo
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