Court permitted a petitioner to set aside an ex parte decision subject to partial payment of admitted dues, ensuring procedural fairness under the Payment of Gratuity Act.

JUDGMENT

The petitioner has approached this Court challenging Ext.P1 order of the Controlling Authority under the Payment of Gratuity Act , 1972 (herein after referred to as ‘the Act’) determining that the petitioner is liable to pay a sum of Rs.1,10,769/- [Rupees One lakh ten thousand seven hundred and sixty nine only] to the 3^rd respondent together with simple interest at the rate of 10% per annum from 26.07.2024. 2. Learned counsel appearing for the petitioner submits that the matter was decided ex parte. It is submitted that though the petitioner filed Ext.P2 petition for setting aside the ex parte order, the petitioner received the notice of hearing of Ext.P2 petition, only after the date initially fixed for hearing, which was on 21.05.2025. It is submitted that, without further notice, the matter was again taken up on 25.06.2025, on which date, the said application was dismissed as there was no representation for the petitioner. It is submitted that the petitioner is admitting the liability to pay gratuity to the 3^rd respondent to the extent of Rs.74,850/- (Rupees Seventy four thousand eight hundred and fifty only) and is willing to pay that amount to the 3^rd respondent immediately.

3. Heard the learned Government Pleader appearing for respondent Nos.1 and 2 also.

4. Having heard the learned counsel appearing for the petitioner and the learned Government Pleader appearing for respondent Nos.1 and 2, I am of the view that this writ petition can be disposed of without notice to the 3^rd respondent as a substantial portion of the liability fixed in Ext.P1 has been admitted by the petitioner.

5. Though, I find no substantial ground made out for setting aside the ex parte award, since the petitioner is admitting liability to the tune of Rs.74,850/- and since the determination in Ext.P1 is only to the extent of Rs.1,10,769/- together with simple interest at the rate of 10% per annum from 26.07.2024, I am of the view that Ext.P1 order can be set aside and the petitioner can be given an opportunity to file objections before the Controlling Authority subject to the condition that the admitted amount of Rs.74,850/- is paid to the

3^rd respondent.

Accordingly, the writ petition is allowed. Ext.P1 order is set aside subject to the condition that the petitioner pays to the 3^rd respondent a sum of Rs.74,850/- (Rupees Seventy four thousand eight hundred and fifty only) within a period of one week from today. The petitioner shall appear before the 2^nd respondent at 11.00 a.m on 01.12.2025 and if the petitioner produces proof of having paid the amount of Rs.74,850/- to the 3^rd respondent, the 2^nd respondent shall re-adjudicate the matter, in accordance with the law, with notice to the 3^rd respondent. If the petitioner fails to pay the amount of Rs.74,850/- to the 3^rd respondent within the time speci Ext.P1 order will continue to operate.

Writ petition is ordered accordingly.