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1977 Supreme(All) 232

IN THE HIGH COURT OF ALLAHABAD
N. D. Ojha, J.
ASHA DEVI JAUHARI - Appellant
Versus
SHARDA DEVI - Respondents
. . Of .
Decided On : 09/02/1977

The jurisdiction of the civil court to decide disputes between rival claimants to gratuity is not barred by the Payment of Gratuity Act, 1972.

Headnote:

PAYMENT OF GRATUITY ACT - SECTION 7(4) - JURISDICTION OF CONTROLLING AUTHORITY - DISPUTE BETWEEN RIVAL CLAIMANTS - CIVIL COURT JURISDICTION NOT BARRED - RULE 12 OF PAYMENT OF GRATUITY RULES, 1972 - ULTRA VIRES.

Fact of the Case:

Dispute arose between the widow of the deceased employee and his daughter, who was the nominee, over the entitlement to gratuity payable by the State Bank of Bikaner. The widow applied for a succession certificate in the civil court, including the gratuity amount. The daughter objected, claiming that the dispute could only be decided by the Controlling Authority under the Payment of Gratuity Act, 1972.

Finding of the Court:

The court held that the civil court had jurisdiction to decide the dispute between the rival claimants to the gratuity. The court interpreted Section 7(4) of the Payment of Gratuity Act and found that the Controlling Authority's jurisdiction was limited to determining the amount of gratuity payable and did not extend to deciding disputes regarding the right to receive the gratuity.

Issues: 1. Whether the civil court had jurisdiction to decide the dispute between the rival claimants to the gratuity. 2. Whether the Controlling Authority had jurisdiction to decide disputes regarding the right to receive the gratuity.

Ratio Decidendi: 1. The court held that the civil court had jurisdiction to decide the dispute because Section 7(4) of the Payment of Gratuity Act did not expressly or impliedly bar the jurisdiction of the civil court. 2. The court held that the Controlling Authority did not have jurisdiction to decide disputes regarding the right to receive the gratuity because Section 7(4) of the Payment of Gratuity Act did not confer such jurisdiction on the Controlling Authority.

Final Decision: The court dismissed the revision petition filed by the daughter, upholding the decision of the lower courts that the civil court had jurisdiction to decide the dispute.

N. D. OJHA, J.

( 1 ) ONE Krishna Prasad Jauhari was an employee in the State Bank of Bikaner, He died leaving assets including some amount of gratuity payable by the said Bank, His widow Smt. Sharda Devi, opposite party No. 1, made an application for succession certificate in the Court of civil Judge, Bareilly. In this application amongst the assets of the deceased the amount of gratuity was also mentioned. A preliminary objection was raised on behalf of the applicant who is one of the daughters of the deceased asserting that she was the nominee in respect of the gratuity and that the dispute in regard to the gratuity could be decided only by the Controlling Authority under the Payment of Gratuity Act, 1972. In other words the assertion of the applicant was that the civil Court did not have the jurisdiction to go into the question as to whether the opposite party No. 1 was entitled to the amount of gratuity in her capacity of being the widow of the deceased or the applicant was entitled to it as the nominee of the deceased. The preliminary objection did not find favour with the civil Judge and he overruled it. Against that order a revision was filed by the applicant before the District Judge. The revision was heard and dismissed by the 3rd Additional District Judge, Bareilly, on February 17, 1976. Aggrieved the applicant has preferred the present revision.

( 2 ) TWO submissions were made by counsel for the applicant (1) that the Courts below were wrong in taking the view that the State Bank of Bikaner was not an establishment within the meaning of Payment of Gratuity Act and (2) that the civil Courts did not have the jurisdiction to decide any dispute raised by rival claimants in regard to the right of receiving the amount of gratuity.

( 3 ) HAVING heard counsel for the applicant at some length I am of opinion that it is not necessary to decide the first question as to whether the State Bank, Bikaner is an establishment within the meaning of the Act or not for the decision can be disposed of on the second question It was urged by counsel for the applicant that Subsection (4) of Section 7 of Payment of Gratuity Act, which Act according to counsel for the applicant, was a self-contained enactment, conferred on the Controlling Authority exclusive jurisdiction to decide even disputes as to the right of a person to receive the amount of gratuity and consequently the jurisdiction of the civil Court was barred. In my opinion there is no substance in this submission. It is true that the heading cannot control the plain meaning of the section but in case of ambiguity assistance can be taken from even the heading. The heading of Section 7 is "determination of the amount of gratuity. " Sub-section (4) of Section 7 reads:

7. Determination of the amount of gratuity. . . . . . . (4) (a) If there is any dispute as to the amount of gratuity payable to an employee under this Act or as to the admissibility of any claim of, or in relation to, an employee for payment of gratuity, or as to the person entitled to reseive the gratuity the employer shall deposit with the controlling authority such amount as he admits to be payable by him as gratuity. Explanation.--Where there is a dispute with regard to any matter specified in this clause the employee may make an application to the control-ling authority for taking such action as is specified in Clause (b ).

(b) The controlling authority shall, after due inquiry and after giving the parties to the dispute a reasonable opportunity of being heard, deter-mine the amount of gratuity payable to an employee, and if as a result of such inquiry amount in excess of the amount deposited by the employer is found to be payable, the controlling authority shall direct the employer to pay such amount as is in excess of the amount deposited by him.

(c) The controlling authority shall pay the amount deposited including the excess amount, if any, deposited by the employer, to the person entitled thereto. (d) As soon as














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