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2022 Supreme(Ori) 792

IN THE HIGH COURT OF ORISSA AT CUTTACK
SANJAY KUMAR MISHRA, J.
Manager Director, Odisha Small Industries Corporation Ltd. – Appellant 
Versus
Abhay Kumar Samantray – Respondent
W.P. (C) No. 19346 of 2021
Decided On : 14-09-2022

Advocates Appeared:
For the Appellant : J.K. Mohapatra
For the Respondent: L.M. Nanda

The entire duration of an employee's service is considered for Gratuity entitlements, and non-deposit of awarded Gratuity prevents appellants from successfully appealing against such claims.

Headnote:(A) Payment of Gratuity Act, 1972 - Sections 4 and 7(3-A) - Orissa Payment of Gratuity Rules, 1974 - Non-payment of Gratuity - Employee claiming Gratuity post-retirement for a service period of 26 years, with the Controlling Authority determining the Gratuity amount and interest, upheld by the court - The corporation's argument on the applicability of the Gratuity Act based on the regularization of service time was found unconvincing. (Paras 3, 5, 14, 22, 24)

(B) Appellate Authority - The need for an employer to deposit the awarded amount as a prerequisite for a valid appeal is reinforced; failure to deposit results in appeal dismissal. (Paras 12, 24)

Facts of the case:
The employee, after retiring, claimed a Gratuity that was denied by the corporation due to non-filing rules limitation; the employee’s initial appointment was in 1991, and he retired in 2018.

Findings of Court:
The employee is entitled to the Gratuity sum and interest, calculated based on the total duration of employment regardless of service regularization timing.

Issues: The main issue was whether the duration of service for Gratuity claims should consider only the regularized period or the entire employment span.

Ratio Decidendi: The court determined that the entire duration of employment qualifies toward Gratuity calculations and upheld the interest rate awarded as statutory.

Result: Writ Petition dismissed.

Table of Content
1. filing of a writ petition due to non-payment of gratuity. (Para 1 , 2)
2. court's analysis of employment period and salary. (Para 9 , 14 , 15)
3. arguments regarding entitlement to gratuity. (Para 10 , 12 , 13)
4. definitions under the p.g. act related to gratuity. (Para 18 , 19 , 21 , 24)
5. writ petition dismissed without costs. (Para 25 , 26)

JUDGMENT :

SANJAY KUMAR MISHRA, J.

1. Being aggrieved by the judgment dated 14.08.2020 passed by the Controlling Authority under Payment of Gratuity Act-Cum-Divisional Labour Commissioner, Cuttack, in P.G. Case No. 06 of 2019, as at Annexure-4, so also Order dated 13.04.2021 passed by the Appellate Authority under Payment of Gratuity Act-Cum-Joint Labour Commissioner, Cuttack, in P.G. Appeal No.1 of 2021, as at Annexure-6, the Petitioner has preferred the present Writ Petition.

2. The factual matrix leading to filing of the present Writ Petition in brief is that Opposite Party No.1, after retirement from service w.e.f. 31.03.2018, because of non-payment of Gratuity by the Petitioner-Corporation, preferred application in Form ‘N’ in terms of Rule-10(1) of the Orissa Payment of Gratuity Rules , 1974 on 22.02.2019 claiming therein an amount of Rs.5,42,055/- towards Gratuity with accrued interest on the ground that his initial appointment being 14.11.1991 and date of superannuation being 31.03.2018, he is entitled to the said Gratuity amount in terms of the last wages drawn by him, i.e. Rs.36,137/-, for the total period of 26 years of service.

3. Being noticed, the Petitioner-Corporation appeared before the Controlling Authority and filed its Written Statement, as at Annexure-3, taking a plea therein that since Opposite Party was appointed in the regular establishment on 04.06.2015 and retired on 31.03.2018, after completion of 2 years 9 months and 27 days of regular service and in terms of Section-4 of the Payment of Gratuity Act, 1972, shortly, the P.G. Act, 1972, he has not filed any application for payment of Gratuity before 30 days of his superannuation i.e. on or before 01.03.2018, the said application in Form ‘N’ in terms of Rule-10(1) of the Orissa Payment of Gratuity Rules , 1974 filed on 22.02.2019 is not maintainable.

4. Based on the pleadings of the Parties, issues were framed and present Opposite Party examined himself as the sole witness and exhibited documents, as Exhibits 1 to 4, to prove his employment under the Petitioner-Corporation, whereas the Petitioner-Corporation did not examine any witness in the said proceeding, although it was accorded necessary opportunity to do so. Finally, based on the pleadings and evidence on record, the Controlling Authority under the P.G. Act, 1972 passed the judgment on 14.08.2020, as at Annexure-4.

5. Based on the said findings, the Controlling Authority, taking into consideration the last drawn wages of the present Opposite Party and his qualifying period of service as 26 years, determined Gratuity amount payable to the present Opposite Party to be Rs.5,42,055/-. That apart, in view of Provision enshrined under Section 7 (3-A) of the P.G. Act, 1972, so also based on the judgments of the apex Court, the Controlling Authority ordered that the Opposite Party is entitled to get Rs. 1,28,608/- towards interest and in toto, he is entitled to get Rs.6,70,663/-. Accordingly, a direction was given to make such payment to the present Opposite Party within 30 days from the date of pronouncement of the judgment, failing which simple interest @ 10% per annum would be charged further till the actual payment is made.

6. Being aggrieved by the said judgment dated 14.08.2020 passed in P.G. Case No.06 of 2019, the Petitioner approached this Court in W.P.(C) No.25919 of 2020, which was disposed of on 22.03.2021, giving opportunity to the Petitioner- Corporation to prefer an Appeal before the Appellate Authority. Accordingly, the Petitioner-Corporation preferred P.G. Appeal No.1 of 2021 before the Appellate Authority under P.G. Act- Cum-Joint Labou

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