IN THE HIGH COURT OF KERALA AT ERNAKULAM
MURALI PURUSHOTHAMAN, J.
M/s.AA Nuts, Rep. by its Partner M.A. Anzar Mohammed - Petitioner
Versus
The State of Kerala, Rep. by Secretary, Department of Labour & Ors. - Respondents
WP(C) No. 19440 of 2023
Decided On : 10-08-2023
Fact of the Case:
The petitioner challenged an order passed by the controlling authority under the Payment of Gratuity Act, where the employer was declared ex parte and an order for gratuity payment was made in favor of the employee.Finding of the Court:
The court found that the petitioner failed to appear before the controlling authority and did not avail of the statutory remedies provided under Rule 11(5) to set aside the ex parte order within the statutory period. The appeal filed by the petitioner was rejected for non-deposit of the required amount, and thus, their petition invoking writ jurisdiction was dismissed.Issues:
Failure to appear before controlling authority, rejection of appeal for non-deposit, invocation of writ jurisdiction.Ratio Decidendi:
The court held that once a cause of action becomes time-barred, it cannot be revived through extraordinary jurisdiction under Article 226. Additionally, it ruled that since the appeal was rejected for non-deposit, recourse to Order 9 Rule 13 of CPC would not lie.Final Decision:
The writ petition challenging Ext.P1 order was dismissed.JUDGMENT :
The petitioner, a partnership firm, has filed this writ petition challenging Ext.P1 order passed by the controlling authority under the Payment of Gratuity Act, 1972 [for brevity, ‘the Act’] on an application preferred by the 4th respondent employee.
2. The 4th respondent filed an application before the 3rd respondent, the controlling authority, claiming gratuity. According to the 4th respondent, she started working in the establishment of the petitioner from 02.08.1982 and continued till 31.12.2018 and her last drawn salary was Rs.8,000/-. It was contended that though she requested the employer to determine and pay the gratuity, the same was not paid. The controlling authority issued notice to the employer. However, the notice was returned with the postal endorsement “intimation 30.08.2022”. Finding that the employer has willfully refused notice, the employer was declared ex parte on 18.10.2022. The controlling authority proceeded with the matter and passed Ext. P1 order holding that the 4th respondent is entitled for gratuity of Rs.1,66,153/- with 10% interest from 01.01.2019.
3. According to the petitioner, they did not receive the notice of the proceedings before the controlling authority and came to know about the award only when revenue recovery proceedings were initiated against them. Though an appeal was preferred against Ext.P1 order, it was rejected for non-deposit of the amount required under the 2nd proviso to Section 7(7) of the Act. The petitioner, thereafter, submitted Ext.P2 representation before the controlling authority stating that they have not received any notice in connection with the proceedings before the authority and accordingly prayed for setting aside the ex parte order and to rehear the matter. Since there was no response from the controlling authority on Ext.P2, the petitioner has filed this writ petition.
4. A counter affidavit has been filed by the 4th respondent contending that the employer flouted the statutory provisions with regard to payment of gratuity when it became due and more than 60 Gratuity cases are pending against the petitioner and the petitioner had purposefully evaded service of notice in the Gratuity case and though Ext. P1 order was served on the petitioner, the amount was not paid and the 4th respondent has filed application under Section 8 of the Act for recovery of gratuity. It is further contended that since the petitioner had already preferred an appeal against Ext. P1 award, Ext. P2 application before the controlling authority is not maintainable.
5. Heard Sri. E.S.M. Kabeer, the learned counsel for the petitioner, Sri. R. Kishore, the learned counsel for the 4th respondent and Sri. V.S. Sreejith, the learned Government Pleader.
6. The notice issued to the petitioner by the controlling authority was returned with the postal endorsement “intimation 30.08.2022”. Finding that the petitioner has willfully refused notice, the petitioner was declared ex parte on 18.10.2022. Since the notice was returned with the endorsement 'intimation', it will amount to deemed service of notice on the petitioner. Rule 11(5) of the Payment of Gratuity (Central) Rules, 1972 provides that, if the employer concerned fails to appear on the specified date of hearing after due service of notice without sufficient cause, the controlling authority may proceed to hear and determine the application ex parte. It further provides that if the applicant fails to appear on the specified date of hearing without sufficient cause, the controlling authority may dismiss the application. However, the proviso to Rule 11(5) provides that an order under Rule 11(5) may, on good cause being shown within 30 days of the said order, be reviewed and the application re-heard after giving not less than 14 days’ notice to the opposite party of the date fixed for re-hearing the application. The petitioner did not approach the controlling authority to set aside the ex parte order and to review the order within the statuto
Court allows reconsideration of gratuity claim upon provisional payment by petitioner, ensuring due process.
The court underscores the right to be heard and the timely filing of appeals under the Payment of Gratuity Act.
The 30-day limitation for setting aside ex-parte orders under the Tamil Nadu Gratuity Rules is directory, allowing for reasonable grounds for delay while prioritizing employee welfare.
Writ jurisdiction under Article 226 not exercisable if effective alternate statutory remedy available, absent exceptional cases like natural justice violation.
The availability of an alternate and efficacious remedy under the statutory provisions and the non-mandatory nature of the requirement of filing a written application for gratuity under Rule 7 of the....
Writ petition not maintainable against appealable order under Payment of Gratuity Act; petitioner relegated to statutory appellate remedy.
Forfeiture of gratuity under Section 4(6) of the Payment of Gratuity Act, 1972 requires a co-relation between the exception and the extent of loss or damage suffered by the employer.
The Controlling Authority must provide notice before condoning a delay in gratuity claims as mandated by law.
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'.
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