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1998 Supreme(Raj) 692

High Court Of Rajasthan
Judgename : J.C.Verma
DHOLPUR KRAYA VIKRAYA SAHKARI LTD. - Appellant
Versus
CONTROLLER UNDER GRATUITY ACT, BHARTPUR - Respondent
S. B. C. W. P. 3914 Of 1991
Decided On : 10/15/1998

The court emphasized the authority of the Registrar to adjudicate on gratuity disputes and the special provisions of the Gratuity Act for the benefit of employees, ultimately rejecting the petitioner's argument and ordering the payment of gratuity to the respondent employee.

Headnote:

Gratuity Act - Co-operative Society - The court upheld the authority of the Registrar to adjudicate on gratuity disputes, rejecting the petitioner's argument that the matter should have been decided by the Registrar and not the authority under the Gratuity Act. The court emphasized the special provisions of the Gratuity Act for the benefit of employees and the availability of a specific forum for adjudication, ultimately dismissing the writ petition and ordering the payment of gratuity to the respondent employee.

Fact of the Case:

The respondent, a driver, served the petitioner society for over 21 years but was not paid gratuity. The petitioner argued that as a co-operative society, it was not liable to pay gratuity and the matter should have been decided by the Registrar under Section 75 of the Act.

Finding of the Court:

The court dismissed the writ petition, upholding the authority of the Registrar to adjudicate on gratuity disputes and emphasizing the availability of a specific forum for adjudication under the Gratuity Act. The court ordered the payment of gratuity to the respondent employee.

Issues: Dispute over the liability of a co-operative society to pay gratuity and the authority of the Registrar to adjudicate on gratuity disputes.

Ratio Decidendi: The court held that the Registrar has the authority to decide certain disputes arising in the affairs of the society touching its constitution, and emphasized the special provisions of the Gratuity Act for the benefit of employees and the availability of a specific forum for adjudication.

Final Decision: The writ petition was dismissed, and the petitioner was ordered to pay the gratuity to the respondent employee within a stipulated period, with interest at the rate of 9% and an enhanced rate of 15% if not paid within the specified period.

Judgment


J. C. VERMA, J.


( 1 ) THE respondent No. 2 Ram Charan had served the petitioner society for about more than 21 years from 1. 3. 1968 to 31. 8. 1988, when he had retired after attaining the age of super annuation. He was employed as driver. Even though he had served the petitioner society for more then 21 years but he was not paid the gratuity. He claimed gratuity of 13 months pay. Nothing was paid with the result the respondent had to approach the respondent no. 1 for determining the gratuity. It was the case of petitioner that it being a co-operative society, it was not liable to pay any gratuity and the matter should have been decided by the Registrar exercising the powers under section 75 of the Act. The order was passed on 22. 3. 1991 by the Competent authority to the effect that respondent driver was entitled for payment of gratuity as per law, and therefore, the gratuity was ordered to be paid to the tune of Rs. 10. 750/- along with the interest thereon, amounting to 15. 584/- which was to be paid to the driver within a period of 30 days. The order was passed on 22. 3. 1991 (Ann. 1 ).

( 2 ) THE petitioner is aggrieved against the order dated 22. 3. 1991, and therefore, prayed in the writ petition that the order dated 22. 3. 1991 be quashed. It is the case of petitioner that Section 75 authorises the Registrar to adjudicate upon the dispute arising in between the parties which touch the constitution of Society, therefore, the authority under Gratuity Act had no power to adjudicate or to determine the gratuity. To support his contention, the petitioner relies on a judgment of Madhya Pradesh (Indian Co-operative Cases (2) page 271), wherein Madhya Pradesh Court had held that the reference made by the Government to Labour Court in regard to service condition of employee of Co-operative Society was illegal as the matter could only be decided by Registrar. Even though the facts involved in that case are distinguishable but with utmost respect to the judgment of Madhya Pradesh Court, even on the point where the matter should be decided by Labour or by the Registrar. I am of the view that in case of industrial dispute arising between the parties if a competent authority is of the opinion that the matter should be referred for adjudication to Labor Court under Section 10 (l) (c), it is only the Labour Court which got the jurisdiction to decide the matter. The Registrar may be having some administrative control on society, but it cannot be said that the powers conferred by special Act under the payment of Gratuity Act are totally ousted. The Registrar has been authorised to decided certain dispute arising in the affairs of the Society touching the constitution of the Society.

( 3 ) APART from above, here is the case of an employee, who served more than 21 years, the employer is taking technical objections about maintainability of the application for payment of gratuity to employee. The payment of Gratuity act is special Act for the benefit of employee wherein a machinery has been provided by the Legislature to adjudicate and decide the cases arising between the employer and employee in regard to payment of gratuity. Even non payment of gratuity had been made punishable under the Act. It was never the intention of Legislature to deprive the employee for the benefit falling within the ambit of Gratuity Act by referring the matter to any other forum when the forum under Gratuity Act was available to him.

( 4 ) FOR the reasons mentioned above, I am not inclined to interfere in the impugned order. The writ petition is dismissed with cost Rs. 500/ -.

( 5 ) IN case the gratuity or any part of the gratuity has not been paid to respondent employee, so far, the same shall be paid to respondent employee within a period of two months from the date of receipt of certified copy of this order. The interest at the rate of 9% has been awarded by the Authority, which is to be paid till the date of payment of gratuity. In case the paymen


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