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2023 Supreme(Cal) 1124

IN THE HIGH COURT AT CALCUTTA
RAJA BASU CHOWDHURY, J.
Abdul Khalil Khan @ Ab Khalil Khan – Appellant
Versus
The State of West Bengal and Others – Respondents
WPA No. 4121 of 2021, WPA No. 5852 of 2022
Decided On : 21-06-2023

Advocates:
Advocate Appeared:
Ranjay De, Basabjit Banerjee, Bikram Sarkar, Sayani Bose, Shamim ul Bari, Soumya Majumder, Amrita Pandey, Anamika Pandey, Sneha Singh, Bipin Ghosh.

The right to appeal under section 7(7) of the Payment of Gratuity Act, 1972 is a statutory right that cannot be taken away by the failure to serve notice in Form 'R'.

Headnote:

PAYMENT OF GRATUITY ACT, 1972 - NOTICE IN FORM 'R' - SERVICE - LIMITATION - EXTENSION - APPEAL - WAIVER OF PRE-DEPOSIT - RIGHT TO - WORKMAN'S RIGHT TO GRATUITY - MATURITY - RULE 17 OF THE WEST BENGAL PAYMENT OF GRATUITY RULES, 1973 - INTERPRETATION.

Fact of the Case:

The workman, employed by the company from 10th January 1966 to 21st February 2005, filed an application under the Payment of Gratuity Act, 1972 (the Act) after a decade of superannuation. The controlling authority, without serving a notice in Form 'R', issued a show cause notice to the company, which was not considered on merits. The appellate authority dismissed the company's appeal as barred by limitation and for lack of mandatory pre-deposit. The workman filed a writ petition for execution of the certificate issued by the controlling authority, while the company challenged the appellate authority's order.

Finding of the Court:

1. The company's right to appeal under section 7(7) of the Act was not lost as notice in Form 'R' was never served. 2. The workman's right to receive gratuity matured only upon service of Form R. 3. The appellate authority erred in dismissing the appeal solely on grounds of limitation and non-compliance with pre-deposit requirements without considering the application for waiver and inconsistencies in issuing notice in Form 'R'. 4. The Hon'ble Supreme Court's order extending the limitation period from 15th March 2020 to 14th March 2021 was applicable to the company's appeal filed on 15th March 2021.

Issues: 1. Whether the company's right to appeal under section 7(7) of the Act was lost due to the non-service of notice in Form 'R'? 2. Whether the workman's right to receive gratuity matured without the service of Form R? 3. Whether the appellate authority erred in dismissing the appeal solely on grounds of limitation and non-compliance with pre-deposit requirements? 4. Whether the Hon'ble Supreme Court's order extending the limitation period applied to the company's appeal?

Ratio Decidendi: 1. The right to appeal under section 7(7) of the Act is a statutory right that cannot be taken away by the failure to serve notice in Form 'R'. 2. The right to receive gratuity matures only upon the service of Form R, as per Rule 17 of the West Bengal Payment of Gratuity Rules, 1973. 3. The appellate authority should have considered the application for waiver of pre-deposit and the inconsistencies in issuing notice in Form 'R' before dismissing the appeal. 4. The Hon'ble Supreme Court's order extending the limitation period from 15th March 2020 to 14th March 2021 was applicable to the company's appeal filed on 15th March 2021.

Final Decision: 1. The appellate authority's order dismissing the company's appeal is set aside and quashed. 2. The appeal is restored to its file and number for hearing and disposal on merits. 3. The certificate proceedings shall remain stayed till the disposal of the appeal.

JUDGMENT :

RAJA BASU CHOWDHURY, J.

1. Two writ applications, one filed by the Delta Limited challenging an order dated 3rd September, 2021 whereby the appellate authority under the Payment of Gratuity Act 1972, was, inter-alia, pleased to dismiss the said appeal on the ground of limitation and the other writ application being WPA 4121 of 2021 filed by the workman concerned, inter-alia, praying for execution of the certificate issued by the controlling authority under the Payment of Gratuity Act, 1972, through the certificate officer having jurisdiction are taken up for consideration together.

2. Records would reveal that the petitioner in WPA 4121 of 2021 (hereinafter referred to as the “workman”) was engaged by Delta Limited (hereinafter referred to as the “company”) on 10th January, 1966.

3. It is the contention of the workman that the workman was a permanent employee under the company and had attained the age of superannuation on 21st February 2005. Thereafter following his superannuation sometimes on or about 25th March 2005, provident fund accumulation was disbursed in favour of the workman. After a lapse of more than a decade from the date of superannuation, the workman had filed an application in Form “I” before the company in terms of provisions contained in the West Bengal Payment of Gratuity Rules, 1973 (hereinafter referred to as the said Rules).

4. It is the contention of the workman that since gratuity remained unpaid, despite receipt of Form “I” an application in form “N” was filed by the workman before the controlling authority under the Payment of Gratuity Act, 1972 (hereinafter referred to as the said Act). Since then proceedings were held before the controlling authority.

5. It is the contention of the company that the company was completely unaware with regard to the factum of disposal of the application in Form “N” until the time mentioned hereinafter.

6. In the interregnum, a general lockdown all over the country was imposed on 23rd March, 2020. The lockdown was partially relaxed sometimes in June 2020. Incidentally however, a show cause notice dated 23rd September, 2020 was issued by the controlling authority calling upon the company to show cause on account of noncompliance of the direction dated 24th March, 2020, why the matter be not sent to the certificate officer in terms of Section 8 of the said Act and also directing the company to pay a sum of Rs.2,83,256/-to the workman.

7. It is contended by and on behalf of the company that prior to receipt of the show cause notice the company was not at all aware with regard to the aforesaid direction issued by the controlling authority and as such immediately upon receipt of the said show cause, the company had responded to the same by communication in writing dated 2nd November, 2020.

8. Records would also reveal that such reply to the show cause, given by the company, was not accepted by the controlling authority as the certified copy of the order passed by the controlling authority had not appended with Form “U” in prescribed manner as envisaged under Rule 20 of the said Rules. It would also transpire from the record that on 4th November, 2020 the appellate authority had issued the certificate in terms of section 8 of the said Act, for recovery of the gratuity amount as determined by the controlling authority. Thereafter the company had filed a review application which was also dismissed by the controlling authority on the ground that the said matter had already been disposed of at the end of the controlling authority.

9. Subsequently the aforesaid writ application being WPA 4121 of 2021 was filed by the workman for execution of the aforesaid certificate. It would also appear from the records that a co-ordinate Bench of this Court by an order dated 24th February, 2021, had directed the company to deposit the entire amount of Rs. 2,83,256/-which had remained unpaid, with the learned Registrar General of this Court. Subsequently however, the co-ordinate Bench by an or

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