IN THE HIGH COURT OF JUDICATURE AT PATNA
P.B. BAJANTHRI, J.
The Chairman, Dakshin Bihar Gramin Bank (Erstwhile Madhya Bihar Gramin Bank) – Appellant
Versus
The Union of India – Respondent
Civil Writ Jurisdiction Case No.1919 of 2021
Decided on : 04-01-2023
Payment of Gratuity Act, 1972 - Statutory Remedy - Dismissal of Writ Petition
Fact of the Case:
The petitioner sought to set aside a decision and order by the Controlling Authority under the Payment of Gratuity Act, 1972, without exhausting the statutory remedy of filing an appeal.
Finding of the Court:
The court dismissed the writ petition, stating that the petitioner had not exhausted the statutory remedy of filing an appeal as provided under the Payment of Gratuity Act, 1972.
Issues: Failure to exhaust statutory remedy, Jurisdiction under Article 226 of the Constitution
Ratio Decidendi: The court held that the petitioner's failure to exhaust the statutory remedy of filing an appeal rendered the writ petition not maintainable, citing the decision of the Apex Court and the provisions of the Payment of Gratuity Act, 1972.
Final Decision: The writ petition was dismissed, with the petitioner being reserved the liberty to invoke the statutory remedy of filing an appeal under the Payment of Gratuity Act, 1972.
JUDGMENT :
Heard learned counsels for the respective parties.
2. In the instant petition, petitioner has prayed for the following relief/reliefs:
(ii) For any other relief/reliefs for which the petitioner may be found entitle in the eye of law and in the facts and circumstances of the case may also be granted in favour of the petitioner.”
3. In terms of sub-Section 7 of Section 7 of the Payment of Gratuity Act, 1972 the petitioner has a statutory remedy of filing appeal against the Controlling Authority. Without exhausting the statutory remedy, the petitioner has rushed to this Court. It is stated that in the event of filing appeal he is required to deposit gratuity amount as stated in the second proviso to Section 7 of the Payment of Gratuity Act, 1972.
4. At the stage, it is submitted that amount of Rs. 8,24,851/-is stated to have been paid to the respondent – workmen. Merely paying certain amount does not permit the petitioner to ignore the statutory remedy available to him. Apex Court in the case of State of Jammu and Kashmir V/s. R.K.Zalpuri and others reported in AIR 2016 SC 3006, Paragraph-20, it is held as under:
“The Court while exercising its jurisdiction under Article 226 is duty-bound to consider whether:
(a) Adjudication of writ petition involves any complex and disputed question of facts and whether they can be satisfactorily resolved;
(b) The petition reveals all material facts;
(c) The petitioner has any alternative or effective remedy for the resolution of the dispute;
(d) Person invoking the jurisdiction is guilty of unexplained delay and laches;
(e) Ex facie barred by any laws of limitation;
(f) Grant of relief is against public policy or barred by any valid law; and host of other factors”
5. In the light of the aforesaid decision of the Apex Court, the present petition is not maintainable. Accordingly, writ petition stands dismissed reserving liberty to the petitioner to invoke sub-Section 7 of Section 7 of the Payment of Gratuity Act, 1972 in accordance with law. Petitioner – employer, if he files appeal, in that event he is permitted to deposit 50 % of the disputed gratuity amount to entertain appeal, since petitioner is stated to have paid certain gratuity amount to the respondent – employee.
6. The appellate authority is hereby directed to take note of Section 14 of the Limitation Act. If petitioner satisfy delay, the same shall be taken note of in terms of relevant provision of Payment of Gratuity Act, 1972.
Failure to exhaust statutory remedy renders writ petition not maintainable.
The main legal point established in the judgment is that a petitioner must exhaust statutory remedies before seeking relief through a writ petition.
The employer must deposit the entire amount of payment of gratuity determined by the Controlling Authority and prefer an appeal within a period of 60 days from the date of receipt of the order. The A....
The court upheld the right of the petitioner to appeal against the gratuity order and clarified the implications of employment status on gratuity entitlements under the Act.
Relief need not be denied on technical grounds, and the court may grant an opportunity to produce necessary evidence before the appellate authority.
The court allowed the petitioner to file an appeal against a gratuity order, emphasizing the importance of statutory timelines for appeals and permitting recovery proceedings based on adherence to th....
The Appellate Authority under the Payment of Gratuity Act is bound by limitation periods and must adjudicate appeals filed timely, while the inclusion of muster roll periods in gratuity calculations ....
The court emphasized the employee's right to claim gratuity if they meet eligibility criteria, affirming that appeal rights exist despite procedural limitations.
A department may appeal against a gratuity claim decision if filed within a specified period, and the appellate authority's delay condonation is limited by statute.
The court reinforces adherence to statutory timelines for appeals under the Payment of Gratuity Act, ensuring that grievances regarding gratuity entitlements are resolved lawfully.
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