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IN THE HIGH COURT OF DELHI
Dinesh Kumar Sharma, J.
Public Works Department - Appellant
Versus
Badle Ram - Respondent
W.P.(C) 15401 of 2022
Decided On : 10-11-2022




The court upheld the right to appeal against the Controlling Authority's decision on gratuity and allowed the delay in filing, while staying recovery proceedings until the appeal is resolved.

Headnote:(A) Payment of Gratuity Act, 1972 - Decision of Controlling Authority - Challenge against the order permitting gratuity payment - Court grants liberty to appeal against the Controlling Authority's decision, condoning delay in filing - Recovery proceedings stayed until appeal is decided. (Paras 1-9)

Facts of the case:
The petitioner challenges the order dated 06th December, 2021, which allowed the respondent's gratuity claim of Rs.1,69,476/- with interest. The petitioner contends that the respondent's period of service was incorrectly considered for gratuity calculations.

Findings of Court:
The court permits the delinquent department to file an appeal within four weeks and stays recovery proceedings pending the appeal resolution.

Issues: The primary issue was whether the Controlling Authority correctly ordered gratuity payment for the period the respondent was on muster roll and the implications of the delay in appealing the decision.

Ratio Decidendi: The court emphasized the right to appeal and mandated that the Appellate Authority consider the appeal on its merit if filed within the stipulated timeframe, upholding the procedure established by law regarding gratuity claims.

Result: The petition is disposed of with directions regarding the appeal and recovery stay.

Table of Content
1. challenge to authority's gratuity payment order (Para 1)
2. error in authority's award for gratuity (Para 2)
3. appeal process and delay condonation (Para 5 , 6 , 7)
4. litigation expenses awarded and petition disposed (Para 8 , 9)

JUDGMENT Dinesh Kumar Sharma, J. (Oral)

CM APPL. 47859/2022, CM APPL. 47860/2022 CM APPL. 47861/2022

CM APPL. 47862/2022 (exemptions)

Exemptions allowed subject to all just exceptions.

W.P.(C) 15401/2022 & CM APPL.47858/2022 (stay)

1. The present writ petition has been filed challenging the order dated 06th December, 2021 passed by the learned Controlling Authority under the Payment of Gratuity Act, 1972 vide which the claim application of respondent No.1 has been allowed and petitioner has been directed to pay Rs.1,69,476/- with simple interest @ 10% per annum in favour of respondent No.1.

2. Learned counsel for the petitioner submits that the learned Controlling Authority has fallen into an error by making the order for payment of gratuity even for the period when the respondent workman was only on a muster roll. Learned counsel for the petitioner further submits that the matter could not be challenged before the Appellate Authority within the period of limitation. It has been further submitted that the Appellate Authority is not empowered to condone the delay beyond the total period of 120 days from the date of receipt of the order.

3. Issue notice.

4. Mr. Manoj Joshi, Advocate, who appears through video conferencing, accepts notice on behalf of respondent No.1. Ms. Rachita Garg, Advocate, who appears through video conferencing, accepts notice on behalf of respondent No.2.

5. Learned counsel for the parties submit that in identical facts, matters have been relegated back to the Appellate Authority to decide the same in accordance with the law.

6. In view of the submissions made, the petitioner-department is granted liberty to file an appeal before the Appellate Authority in accordance with law within the period of four weeks. The delay in filing the appeal is condoned.

7. The Appellate Authority shall entertain the appeal if filed on or before 11th December, 2022 and shall decide the same in accordance with the law. Till 11th December, 2022, the recovery proceeding shall remain stayed. In case, the petitioner fails to file the appeal on or before 11th December, 2022 before the Appellate Authority in accordance with law, the respondent shall be at liberty to initiate recovery proceeding against the petitioner- department.

8. Learned counsel for the respondent No.1 has pressed for litigation expenses. Following the precedents, the petitioner-department shall pay a sum of Rs.25,000/- as litigation expenses to the respondent No.1 within four weeks.

9. With these observations, the present petition along with pending application stands disposed of.

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