IN THE HIGH COURT AT CALCUTTA Constitutional Writ Jurisdiction Appellate Side Present:

The Hon’ble Justice Shampa Dutt (Paul)

WPA 20826 of 2019 M/s. Garden Reach Shipbuilders & Engineers Ltd.

Vs.

Deputy Chief Labour Commissioner (Central) & Ors. For the Petitioner : Mr. Ranjay De, Sr. Adv.

Mr. Basabjit Banerjee, Mr. Adityajit Abel Bose.

For the Respondent Nos. : Mr. Rajkumar Gaurisaria.

1, 2 & 3 Hearing concluded on : 27.02.2025 Judgment on : 21.03.2025 SHAMPA DUTT (PAUL), J. :

1. The present writ application has been preferred praying for setting aside of an order dated 31.07.2019 forwarded vide memo dated 26.09.2019 passed by the Respondent No.1/

Deputy Chief Labour Commissioner (Central), Kolkata and Appellate Authority under Payment of Gratuity Act, 1972.

2. The petitioner’s case is that it is a Government of India undertaking.

3. The Respondent No. 4 herein joined the petitioner company on

15.05.1981 and he retired from the service of the company with effect from 31.08.2017 on reaching the age of superannuation.

4. At the time of superannuation, his designation was Manager and he retired after serving the company for a period of 36 years 3 months 17 days.

5. As per Sub-Section 3 of Section 4 of the Payment of Gratuity Act, 1972 (hereinafter referred to as the said Act of 1972), the maximum statutory limit of gratuity at the relevant point of time was Rs. 10,00,000/- (Rupees ten lakhs) only. Accordingly, a sum of Rs. 10,00,000/- (Rupees ten lakhs) only was transferred to his account through NEFT.

6. The Government of India, Ministry of Heavy Industries and Public Enterprises, Department of Public Enterprises issued an Office Memorandum No. W-02/0028/2017-DPE(WC)-GL- XIII/17 dated 03.08.2017 for "Pay Revision of Board level and below Board level Executives and Non-Unionized Supervisors of Central Public Sector Enterprises (CPSEs) w.e.f. 01.01.2017".

7. In the 345^th Meeting of the Board of Directors of the Petitioner Company held on 14.11.2017, the approval was obtained for implementation of pay revision for the Officers in terms of the said Office Memorandum dated 03.08.2017.

8. By an order dated 09.01.2018, the Deputy Secretary to the Government of India, Ministry of Defense, Department of Defense Production informed the petitioner company that the Hon'ble President of India has been pleased to direct the implementation of the pay revision in accordance with the said Office Memorandum dated 03.08.2017 in connection with the petitioner company.

9. By a Circular being No. HR/P & RR/30/18 dated

30.01.2018, the management of the petitioner company announced the implementation of the pay revision for the payment with salary for the month of January, 2018. It was informed in the said Circular that the arrears would be disbursed subsequently with due notice.

10. It is further stated by the petitioner that although the pay revision as per the Office Memorandum dated 03.08.2017 as indicated hereinabove was to be implemented with effect from 01.01.2017 but there was no provision for paying interest on the arrears to be receivable by the beneficiaries on any account in any manner what so ever. Therefore, in the circular dated

30.01.2018, there was no provision for payment of interest on any amount to be received by the officers of the Petitioner Company.

11. After issuance of the said Circular dated 30.01.2018, the management of the petitioner company started giving effect to the pay revision from the month of January, 2018 but the arrear payments on any account were yet to be disbursed. In the mean time on 29.03.2018 Ministry of Law and Justice, Government of India published that the Payment of Gratuity (Amendment) Act, 2018 (No. 12 of 2018), being an Act of Parliament which received the assent of the President of India on 28.03.2018.

12. The Ministry of Labour & Employment by a Gazette Notification being No. S.O.1419(E) dated 29.03.2018 made it known to the Citizen of India that the Central Government had appointed 29.03.2018 as the date on which the s