HIGH COURT OF MADRAS
Honourable Ms Justice R.N.MANJULA
Annamalai University – Appellant
Versus
The Additional Commissioner Of Labour – Respondent
W.P.No.24406 of 2024 and W.M.P.Nos.26682 & 26683 of 2024
Gratuity - Writ Petition - Payment of Gratuity Act, 1972 - Sections 4, 7 - The court examined the provisions of the Payment of Gratuity Act, emphasizing the necessity for compliance with statutory obligations regarding gratuity payments and the implications of audit objections on disbursement.
Fact of the Case:
The petitioner challenged an order regarding the disbursement of retirement benefits, including gratuity, to a third respondent, which had been allowed by the second respondent. The petitioner previously filed a writ petition against this order, which was dismissed for not exhausting alternative remedies.
Finding of the Court:
The court noted that the petitioner could not disburse the benefits due to audit objections and highlighted the need for the petitioner to address these objections with the government, referencing prior judicial decisions that quashed related government orders.
Issues: Whether the petitioner can disburse gratuity payments in light of audit objections and the implications of previous judicial decisions on the matter.
Ratio Decidendi: The court established that compliance with the Payment of Gratuity Act is mandatory and that audit objections must be resolved before disbursement can occur, reinforcing the importance of following statutory procedures.
Final Decision: The Writ Petition is disposed of with no costs.
O R D E R
The Writ Petition has been filed challenging the order of the first respondent made in P.G.A.No.15 of 2023 etc. batch dated 22.09.2023. 2. Heard M/s.S.Sithirai Anandam, learned counsel for the petitioner and Ms.M.Jayanthy, learned Additional Government Pleader for the respondents 1 and 2 and perused the materials available on record. 3. The third respondent has filed P.G.Case No.18 of 2021 before the second respondent for claiming her retirement benefits, including the gratuity payable to her and the same was allowed on 08.03.2021. However, the petitioner’s University has challenged the same by way of preferring W.P.No.20368 of 2021 etc. batch, which is inclusive of the third respondent's payment of gratuity order. But the said batch of writ petitions have been disposed on the observation that the petitioner, without exhausting the alternative remedy of filing an appeal, has filed the writ petition. Subsequent to that, the petitioner preferred an appeal before the appropriate authority and the appeal was also dismissed by confirming the order of the second respondent.
4. M/s.S.Sithirai Anandam, learned counsel for the petitioner submitted that the petitioner is not able to disburse the terminal benefits as allowed by the respondents 1 and 2, in view of the audit objections already raised in this regard.
5. In fact, the very purpose of filing the Payment of Gratuity Petition by the individuals is only due to the local fund audit objections raised in this regard. It has been dealt with by the second respondent in his order dated 08.03.2021 by observing that the audit objection has been raised in accordance with G.O.(Ms)No.402, Higher Education (H2) Department, dated 13.12.2006 which intended to bring uniformity in the service condition of all University employees on par with the Government servants. In fact, the matter has been challenged as early as in the year 2007 itself in W.P.No.49 of 2007 and an order has been passed on 04.04.2012 by quashing the above Government Order in G.O.(Ms)No.402, Higher Education (H2) Department, dated 13.12.2006.
6. However, it is learnt that in pursuance of the orders passed, the matter is said to be under the consideration of the Government. In such a case, the petitioner is at liberty to bring it to the notice of the Government about the earlier Government Order passed in this regard and the judicial pronouncements made in setting aside the same and see the objections are removed and processed further.
7. With the above observation, this Writ Petition is disposed. No costs. Consequently, connected Miscellaneous Petitions are closed.
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