The employer is required to deposit the admitted amount of gratuity as required by the law for the purpose of preferring an appeal under the Payment of Gratuity Act.

( 1 ) THE petitioner herein has challenged the decision of the Appellate authority dated March 5, 2002 in respect of the Appeal filed by the petitioner herein under sub-section (7) of section 7 of the Payment of Gratuity Act, 1972. The Appellate Authority rejected the aforesaid appeal of the petitioner Company on the ground that the said Company did not deposit the entire amount of money as directed by the Controlling authority. From the said order dated March 5, 2002 passed by the Appellate Authority, it appears that the petitioner Company admittedly deposited the entire gratuity amount of Rs. 63,218. 00 although the interest amount of Rs. 6,322. 00 was not deposited. The petitioner company denied its liability to make payment of the interest with gratuity amount and as such deposited only the gratuity amount before preferring the Appeal before the Appellate authority. In terms of sub-section (7) of section 7 of the Payment of Gratuity Act any person aggrieved by the order of Controlling authority may prefer an appeal before the appellate Authority. However, no appeal by the employer shall be admitted unless at the time of preferring the appeal the appellant either produces a Certificate of the Controlling authority to the effect that the appellant has deposited with him an amount equal to the amount of gratuity required to be deposited under sub-section (4) (a) or deposits with the authority such amount. Admittedly, under sub-section (4) (a) the employer is required to deposit with the controlling Authority such amount as he admits to pay as gratuity. The provisions of sub-section (4) (a) is quoted hereunder:"if there is any dispute as to the amount of gratuity payable to an employee under this act or as to the admissibility of any claim of, or in relation to, an employee for payment of gratuity, or as to the person entitled to receive the gratuity, the employer shall deposit with the Controlling Authority such amount as he admits to be payable by him as gratuity. "

( 2 ) IN the present case the petitioner company as employer admits that only the gratuity amount of Rs. 63,218. 00 is payable for the purpose of preferring this appeal and as such in terms of sub-section (4) (a) the petitioner company has deposited the requisite amount for the purpose of preferring appeal under sub-section (7) of Section 7 of the said Payment of Gratuity Act. In my view, the Appellate authority has committed an error by rejecting the Appeal preferred by the appellant on the ground that appellant company has not deposited the entire amount of money as directed by the Controlling Authority although in terms of sub-section (4) (a) of Sec. 7 the employer is required to deposit with the controlling Authority such amount as the said employer admits to be payable for the purpose of preferring this Appeal as gratuity and in the present case the employer has deposited the admitted amount of gratuity.

( 3 ) FOR the aforementioned reasons, the decision of the Appellate Authority is liable to be quashed and the same is accordingly quashed. The Appellate Authority is directed to decide the Appeal preferred by the appellant company on merits, in accordance with law as expeditiously as possible and to pass a reasoned order in the matter.

( 4 ) THE Writ Petition is thus disposed of. There will, however, be no order as to costs.