The High Court emphasized the importance of the Controlling Authority's jurisdiction to condone delay in filing an application for gratuity and the Appellate Authority's duty to properly consider the evidence on record and reach a reasonable finding.

T.N. Singh, J.

1. The order passed in appeal under Section 7(7) of the Payment of the Gratuity Act, 1972, for short the Act, on 14.9.1982, is challenged by the employee whose application made under Section 7(4) of the Act to the "Controlling Authority", on 30.7.1976, stood rejected under the impugned order passed in appeal preferred by the employer.

2. By the impugned order the Appellate Authority has set aside the order passed on 2.7.1981 by the Controlling Authority holding the petitioner entitled to payment of gratuity in the sum of Rs. 10,836/- reckoning 40 years' service for the purpose of computation of the gratuity. In the appeal two new grounds were urged successfully resulting in the application of the petitioner being held in appeal as untenable in law. However, appellant/employer having made a deposit of a sum of Rs. 4,641/- with the "Controlling Authority" care was taken to hold that on the basis of admitted liability the petitioner/respondent could be entitled to payment of that sum. It was held in appeal, firstly, that under provisions of the Rules framed by the State Government under the Act the employee was required to make an application to claim gratuity within a period of 30 days of its becoming payable. But, he himself admitted that he had filed several applications on 13.3.1976, 11.6.1976 and 22.7.1976 and all of them were time barred. Secondly, when the employee complained on 13.3.1976 to the Controlling Authority against refusal of the employer to pay him gratuity pursuant to his application, he did not file along with his said claim petition (complaint) annexures as contemplated under the relevant Rules. The Controlling Authority had, therefore, no jurisdiction to entertain his claim petition and deal therewith in any manner despite the fact that default had been made up belatedly on 7.10.1978.

3. Section 4 of the Act creates liability of the employer for payment of gratuity of the employee, who had rendered not less than 5 years continuous services and that is made payable on his superannuation or retirement/resignation or his death or disablement due to accident or disease. Sub-section (2) contemplates that for every completed year of service or part thereof in excess of six months' gratuity to an employee shall be at the rate of fifteen days' wages based on the rate of wages last drawn by the employee. Sub-section (3) provides the ceiling of 20 months' wages. However, we extract below the relevant parts of Section 7 of material significance to the controversy agitated:

'"7. Determination of the amount of gratuity - (I) A person who is eligible for payment of gratuity under this Act or any person authorised, in writing, to act on his behalf shall send a written application to the employer, within such time and in such form as may be prescribed, for payment of such gratuity.

(2) As soon as gratuity becomes payable, the employer shall, whether an application referred to in Sub-section (1) has been made or not, determine the amount of gratuity and give notice in writing to the person to whom the gratuity is payable and also to the Controlling Authority specifying the amount of gratuity so determined.

(3) The employer shall arrange to pay the amount of gratuity, within such time as may be prescribed, to the person to whom the gratuity is payable.

(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 receive 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 Controlling 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 dispu