SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

IN THE HIGH COURT OF GUJARAT
H.K. RATHOD, J.
Rajnagar Textile Mills - Appellant
Versus
Gunvant Lalchanddas Kayastha - Respondent
S.C.A. No. 3491 of 2010
Decided on : 06-04-2010

Advocates:
Advocate Appeared:
For the Appellant : R.S. Sanjanwala, adv

Headnote:

Payment of Gratuity Act, 1972 - Section 4(6) - Constitution of India, 1950 - Article 226 - Workmen - Gratuity - Challenged orders passed by Controlling authority (Central) and Appellate Authority (Central) under Act, 1972 in application and appeal - Controlling authority directed to petitioner to pay amount with simple interest from date of superannuation of respondent till date of payment -Appellate authority has dismissed appeal preferred by petitioner - Controlling authority by petitioner that case of CBI had initiated criminal prosecution after thorough investigation and criminal case has been registered and same is yet to be decided by competent authority - In this circumstances, Mills company is not in a position to pay amount of gratuity - Whether petitioner is entitled to withheld amount of gratuity or not because of CBI had initiated criminal prosecution against present respondent and criminal case has been registered and pending before competent authority - Held, Reason given by Controlling authority as well as confirmed by Appellate authority and considering same contention that criminal case is pending before competent authority, can not give any authority to employer to withhold amount of gratuity - Which has been found to be due in favour of respondent under provision of Act, 1972 - No provision made in Act which give power to employer to withhold amount of Gratuity there is only provision made in section 4(6) which give power to employer to forfeiture of amounts of gratuity but there is distinction between forfeiture and to withhold amount of gratuity - Action of petitioner withholding amounts of gratuity because of CBI case is pending is without jurisdiction and contrary to provision of Act, 1972 - Reasoning given by both authority with application of mind and none of authority has committed error which would require interference by this Court under Article 227 of Constitution - Not required to be placed before Honourable Chief Justice of this Court - Petition dismissed.

JUDGMENT :

H.K. Rathod, J.

Heard learned Advocate Mr. R.S. Sanjanwala on behalf of Petitioner.

2. The Petitioner Rajnagar Textile Mills Ltd has challenged order passed by Controlling Authority (Central) under Payment of Gratuity Act, 1972 dated December 16, 2008 in application No. 48(11)/2008 and also challenging order passed by Appellate Authority (Central) under Payment of Gratuity Act being appeal No. 48(2)/2008 dated June 10, 2008.

3. The Controlling Authority directed to Petitioner to pay Rs. 3,50,000/- + 10% simple interest from date of superannuation of Respondent dated May 31, 2008 till date of payment. The Appellate Authority has dismissed appeal preferred by Petitioner.

4. Learned Advocate Mr. Sanjanwala submitted that Respondent, who was working as Store Officer superannuated on May 31, 2008. Since CBI filed case against Respondent being RC/2/1988, amount of gratuity was not paid to Respondent. The Controlling Authority has granted gratuity amount which confirmed by Appellate Authority and at the time of filing appeal before Appellate Authority, Petitioner has deposited said amount as per order passed by Controlling Authority before Appellate Authority. The only contention raised before this Court as it was raised before Controlling Authority by Petitioner that case of CBI had initiated criminal prosecution after thorough investigation and criminal case has been registered and same is yet to be decided by competent authority. In this circumstances, Mills company is not in a position to pay amount of gratuity. Therefore, question is whether Petitioner is entitled to withheld amount of gratuity or not because of CBI had initiated criminal prosecution against present Respondent and criminal case has been registered and pending before competent authority.

5. Learned Advocate Mr. Sanjanwala submitted that one order has been passed by this Court in case of Jahangir Textile Mills in S.C.A. No. 11124/2008, where amount of gratuity has been withheld by Mills company because of residential accommodation has not been vacated by concerned employee. That question has been referred to larger Bench by aforesaid order dated August 12, 2009, wherein para 5 to 7 are relevant, therefore, quoted as under:

5. Shri Vasavada has further relied upon decision of this Court in case of Anapol Vs. J.S.E.B. and Others, (2003) 1 BC 240, wherein this Court (Coram: D.H. Waghela, J) has held that the amount due to ex-employee cannot be adjusted against amount of rent due to employer for unauthorised detention of premises by the employee.

6. In view of these two views expressed by different Benches of this Court, I am of the view that this matter deserves to be referred to Larger Bench, so as to bring to an end to the uncertainty prevalent with regard to position of law in such a situation.

7. Hence, office is directed to place this matter before the Honourable. The Chief Justice for passing appropriate order in light of the aforesaid observations.

6. In view of above observation made by this Court, matter has been placed before Honourable the Chief Justice for passing appropriate order in light of observation made by this Court as referred above. Therefore, learned Advocate Mr. Sanjanwala submitted that this matter may be also referred to bench of Honourable the Chief Justice to place before Division Bench of this Court because of uncertainty and having two different view of Learned single Judge in respect to question of withholding gratuity by employer. Except that no other submission is made by learned Advocate Mr. Sanjanwala before this Court.

7. I have perused order passed by Controlling authority and by Appellate authority. In light of contention raised by learned Advocate Mr. Sanjanwala, question is whether Petitioner Mills Company entitled to withhold amount of gratuity, which has been found to be due in favour or Respondent under provision of Payment of Gratuity Act because CBI had initiated criminal prosecution and criminal case is registered against














































Click Here to Read the rest of this document

1
2
3
4
5
6
7
8
9
10
11
SupremeToday Portrait Ad
supreme today icon
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon Back to top