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2013 Supreme(Mad) 795

High Court of Judicature at Madras
K. CHANDRU, J.
The Correspondent Kongu Arts & Science College, Nanjanapuram
Versus
The Assistant Commissioner of Labour Controlling Authority, Salem & Others
W.P. Nos. 3023 to 3029 of 2013 & M.P. Nos. 1 of 2013
Decided on : 07-02-2013

Advocates appeared:
For the Petitioner:N. Manokaran, Advocate.

The absence of limitation for filing the application in the Payment of Gratuity Act and the ultravires nature of the state government's rule making power.

Headnote:

Gratuity Act - Private College Management - The court upheld the decision of the Controlling Authority to condone the delay in filing gratuity applications, citing the absence of limitation for filing the application in the Payment of Gratuity Act and the ultravires nature of the state government's rule making power.

Fact of the Case:

The petitioner, a private College Management, filed Writ Petitions against the order of the Controlling Authority under the Payment of Gratuity Act, 1972, regarding delay in filing gratuity applications by teachers who had resigned.

Finding of the Court:

The court dismissed the Writ Petitions, upholding the Controlling Authority's decision to condone the delay and stating that the management should contest the case in the manner known to law if they believe the teachers are not entitled to be covered by the Act.

Issues: Delay in filing gratuity applications, contesting the applicability of the Act to teachers, and the maintainability of the application filed by the contesting respondent.

Ratio Decidendi: The court found that the Payment of Gratuity Act does not provide a limitation for filing the application, and the state government's rule making power to prescribe a limitation was held to be ultravires of the main Act.

Final Decision: The Writ Petitions were dismissed, and the court did not deal with the maintainability of the application filed by the contesting respondent.

Judgment

1. In these Writ Petitions, the petitioner is a private College Management. Aggrieved by the order of the 1st respondent Controlling Authority under the Payment of Gratuity Act, 1972 in I.A.Nos.39, 47, 42, 43, 44, 45 and 46 of 2012 in unnumbered P.G. Cases of 2012, dated 3.12.2012, the petitioner has filed these Writ Petitions.

2. The contesting 2nd respondents were all Teachers employed by the College and they left College on account of resignation in the year 2008 onwards. Taking advantage of the Notification issued by the Central Government bring the educational Institutions within the purview of Payment of Gratuity Act, the 2nd respondent filed a claim to pay gratuity from the management and thereafter approached the authority with Gratuity Application in terms of the Payment of Gratuity Act.

3. Since there was delay, the contesting respondents filed applications for condonation of delay. These applications were taken on file as I.A.Nos.39, 47, 42, 43, 44, 45 and 46 of 2012. After notice to the petitioner management, the delay was condoned on the ground that there was sufficient cause.

4. The management resisted the condonation of delay on the ground that the application for gratuity ought to have been presented within 30 days in terms of Rule 7 (1) of the Tamil Nadu Payment of Gratuity Rules and inasmuch as no such representation is filed and the long delay in filing the application ought not to have been condoned. The reason adduced by the contesting respondents will not constitute a sufficient cause.

5. In the affidavit filed in support of the application (though it is strongly contended that no such affidavit was filed or served on the management), it is stated that the contesting respondents were under the impression that the management will not settle the gratuity and thereafter they sent a letter a letter dated 14.9.2011 as well as reminder and subsequently sent Form-N to the Joint Commissioner erroneously and finally came before this authority. Though the learned counsel for the petitioner refuses the filing of affidavit, perusal of the order will clearly show that the authority referred to the affidavit having been filed by the contesting respondents. A ground has been raised. But, in the sense the authority has recorded that the affidavit was accompanied along with the petition, this Court is not inclined to accept the stand of the management.

6. The authority after hearing both sides came to the conclusion that the Notification covering educational institution was made by the Central Government on 3.4.1997 and subsequently the Act also has been amended by Amending Act 2009 by bringing private educational institution in which ten or more persons are employed, and the delay is excusable.

7. This Court is not inclined to interfere with the order merely condoning delay. As far as the question as to whether the Act itself provides for limitation for filing the application is concerned, Section 4 read with Section 7 is silent on the said aspect. On the other hand Section 7(1) merely enables that a person should send a written application to the employer and under Section 7(2), the obligation is on the employer to pay gratuity. Whether the application is received under Section 7(1) or not, Section 7(3) obliges the employer to pay gratuity from the date it becomes payable. It is only in case of dispute under Section 7(4), the aggrieved person will have to approach the authority for claiming gratuity. While Section 7(7) prescribes a limitation for filing the appeal against the Controlling Authority, Section 7(4) do not talk about any limitation and under Section 7, no power has also been delegated to the Rule Making authorities to frame rule regarding limitation.

8. In the absence of any power of delegation of the principal legislation in the case of rule making power, the State cannot make any limitation as it will amount to substantial legislative power, which is not conferred on them. It is only under the


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