IN THE HIGH COURT OF JHARKHAND AT RANCHI
ANUBHA RAWAT CHOUDHARY, J.
Project Officer, Bachra Project, Central Coalfields Limited – Appellant
Versus
Union of India and Others - Respondents
W.P. (C) No. 1527 of 2005
Decided on : 20-03-2023
Payment of Gratuity Act, 1972 – Public Premises (Eviction of Unauthorized Occupants) Act, 1971 – Oil and Natural Gas Commission Act, 1959 – Public Premises (Eviction of Unauthorized occupants) Act, 1971 – Sections 5, 7 – Payment of gratuity – Writ petition has been filed for reliefs – Held, Admittedly, private respondent evicted quarter and thereafter filed a petition to realize gratuity amount as per arbitration award – Award did not direct for any adjustment or recovery of any penal rent or recovery of any dues – Appellate authority while passing impugned order has acted in terms of award – Court does not find any illegality or perversity in impugned appellate order directing payment of gratuity in terms of arbitral award with interest from date of application and consequently refusing to deduct penal from gratuity amount – Impugned order passed by appellate authority does not call for any interference under writ jurisdiction – Writ petition dismissed.
JUDGMENT :
Anubha Rawat Choudhary, J.:
Heard Mr. A.K. Das, learned counsel appearing on behalf of the petitioner along with Ms. Swati Shalini, Advocate.
2. Nobody appears on behalf of the respondents.
3. This writ petition has been filed for the following reliefs: –
Arguments of the petitioner.
4. Learned counsel for the petitioner submits that the husband of the petitioner was dismissed on 15.06.1990 and thereafter he died on 26.06.1993. He further submits that the matter regarding dismissal of the husband of the petitioner was subject matter of arbitration and an award dated 14.02.1997 was passed wherein it was observed that there were some illegalities in the matter of termination but the learned Arbitrator did not choose to reinstate the husband of the petitioner, rather directed for payment of gratuity by calculating one month's salary for each year till his age of superannuation.
5. The learned counsel submits that thereafter a petition was filed before the Authority under Payment of Gratuity Act and the specific case of the petitioner before the Authority was that the petitioner is entitled for penal rent for the period the private respondent had retained the quarter. He has relied upon a judgment passed by the Hon'ble Supreme Court reported in (2001) 6 SCC 596 (Wazir Chand v. Union of India) and he submits that the penal rent is adjustable against death cum retiral dues. He has also relied upon a judgment passed by this court passed in L.P.A. No. 15 of 2013 and submits that this court has upheld the power of the Authority to deduct penal rent from the payable gratuity amount.
6. Learned counsel has also submitted that a notice dated 21.09.2001 was issued to the private respondent quantifying the penal rent as Rs. 1,78,160/- stating that the same was adjustable against the gratuity payable to the husband of the private respondent and she was directed to evict the quarter. Learned counsel has also relied upon one more judgment passed in the case of Project Officer v. Regional Labour Commissioner, Central in W.P. (C) No. 2178 of 2006 decided on 23.07.2012 wherein this court while referring to the aforesaid judgment passed by the Hon'ble Supreme Court in the case of Wazir Chand has held that the employer is at liberty to adjust the penal rent due to the employee for the period of unauthorized occupation of his quarter from the outstanding post retiral dues of the employees gratuity amount. Learned counsel has relied upon another judgment reported in (2005) 5 SCC 245 para No. 17, to submit that there is a right to effect recovery of dues from any officer without his consent from gratuity.
7. Learned counsel for the petitioner has submitted that there are two points involved in the present case. Firstly, once the employee was terminated, no gratuity at all was payable and secondly if any amount was payable the penal rent was adjustable. Operative porti
The court determined that gratuity can be withheld if an ex-employee fails to vacate company accommodation, constituting a breach of internal policies.
The court established that gratuity can be withheld for damage rent due to unauthorized occupation under the Railway Service (Pension) Rules, 1993.
An employer is entitled to withhold gratuity and adjust penal rent for unauthorized occupation of employer-allotted accommodation. Gratuity and vacation of premises are reciprocal obligations, and in....
Employer cannot withhold gratuity for unauthorized retention of quarters post-retirement; statutory interest of 10% applies for delayed payment.
The court ruled that administrative orders must provide reasons and notice to comply with natural justice principles, and failure to do so renders the order unsustainable.
Retired employees are entitled to gratuity and interest on delayed payments, with the court having no discretion to deny interest under the Payment of Gratuity Act.
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