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2025 Supreme(All) 2358

IN THE HIGH COURT OF ALLAHABAD AT LUCKNOW BENCH 
Shree Prakash Singh, J.
Ambrish Dwivedi and Others - Appellants
Versus
Anand Kumar Singh and Another - Respondents
Contempt Application (Civil) No. 3413 of 2023
Decided On : 24-04-2025


Advocates:
Advocate Appeared:
For the Appellant : Pradeep Kumar Tripathi
For the Respondent: Lalit Shukla

Misrepresentation in court proceedings constitutes fraud, allowing the recall of a contempt order if established.

Headnote:(A) Payment of Gratuity Act, 1972 - Section 7(3A) - Contempt of Court - Recall of order - The applicants sought recall of a contempt order dismissing their petition due to misrepresentation regarding compliance with a Writ Court order for delayed gratuity interest payment. The court held misrepresentation constitutes fraud, allowing the recall of the order. (Paras 3, 11, 24, 26)

(B) Contempt of Court - The court reaffirmed that a contempt application can be dismissed based on misrepresentation of facts, thereby allowing for a recall when such misrepresentation is established. (Paras 10, 24)

Facts of the case:
The applicants filed a contempt petition regarding delayed payment of gratuity and interest, claiming the opposite party misrepresented compliance with the Writ Court's order directing interest payment on delayed gratuity.

Findings of Court:
The court found that the order dismissing the contempt application was based on misrepresentation and thus allowed the recall of the order.

Issues: The main issues included whether misrepresentation occurred and if it warranted recalling the contempt order.

Ratio Decidendi: The court established that misrepresentation in court proceedings constitutes fraud, thereby allowing the court to recall its order if such fraud is proven.

Result: Recall application allowed, and the contempt petition restored.

ORDER :

Shree Prakash Singh, J.

Order on C.M. Application No. 04 of 2024-Recall

1. Heard Sri Pradeek Kumar Tripathi, counsel for the applicants and Sri Lalit Shukla, counsel for the opposite party.

2. The present application for recall of the order dated 20.2.2024 passed by this Court in Contempt Application (Civil) No. 3413 of 2023 has been moved and the order dated20.2.2024 is quoted hereinunder:-

"Case called out.

None present for the petitioners.

Sri Lalit Shukla, learned counsel for opposite party submits that the order passed by the writ court has been complied with. He further submits that the petitioners have certain objections with respect to calculation of amount on interest part.

Since the calculation with respect to gratuity is the disputed question of fact and that can be raised before the appropriate forum, at appropriate stage.

In view of the aforesaid, no contempt is made out at this stage.

The contempt petition is dismissed.

Notices are discharged.

Consigned to record."

3. Learned counsel appearing for the applicants submits that the Writ (A) No. 6142 of 2022 ( Ambrish Dwivedi And Others Vs. State of U.P. and Ors. ) was filed with a prayer of payment of interest on delayed payment of the gratuity as well as leave encashment to the petitioners therein. The Writ Court while passing the order dated 8.5.2023 in the aforesaid writ petition, has noted the submission of counsel for the petitioners therein, that the petitioners retired in the year 2014 to 2020 whereas, the gratuity was paid in the month of August, 2021 and therefore, considering the facts and circumstances of the case and particularly, the provision of section 7(3A) of payment of Gratuity Act 1972, directed the respondents to ensure the payment of interest @ 7% p.a. on the amount of delayed payment of gratuity, from the date of their retirement till the actual payment made to them, within period of three months. The Writ Court was conscious sufficiently and therefore, it was further provided that if amount is not paid within a period of three months, the same shall carry further interest @ 7% p.a. on the unpaid interest. He submits that this order was passed after hearing the parties and this has attend finality. The order dated 8.5.2023 passed in Writ A No. 6142 of 2022 is read as follows:-

"1. Present petition has been filed by the petitioners claiming interest on delay in payment of the gratuity as well as the leave encashment to the petitioners.

2. Submission of learned counsel for the petitioners is that the petitioners retired in the year 2014 to 2020 (as detailed in Annexure No.1) whereas the gratuity was paid in the month of August, 2021 as detailed in Para -18 of the writ petition.

3. Considering the fact that on payment of gratuity, the statutory interest is prescribed under Section 7(3A) of the Payment of Gratuity Act, the present petition is disposed off directing respondents to ensure payment of interest at the rate of 7% per annum on the amount of delay in payment of gratuity.

4. The amount of interest shall be paid from the date of retirement till the actual payment as indicated in Para - 18 of the writ petition.

5. The interest as directed to be awarded herein above, shall be paid to the petitioners positively within a period of three months from the date of production of a certified copy of this order.

6. In case, the amount is not paid within a period of three months as directed above, the same shall carry a further interest at the rate of 7% on the unpaid interest as directed above.

7. The writ petition is disposed off in above terms.

8. This order has been passed in the presence of Shri Shanker Lal, learned counsel appearing for respondent no. 2."

4. Referring the aforesaid, he submits that on some part of the delayed payment, the interest has been paid whereas, it has been misrepresented before the Court that the order passed by the Writ Court has been complied with. He has drawn attention towards the counter affidavit filed to the application for rec

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