Allowed

The District Cooperative Central Bank Ltd., v. The Assistant Commissioner of Labour

Andhra Pradesh HC21 Feb 2024WA/98/2024

Case brief

AI extract

What is this about?

The High Court of Andhra Pradesh allowed a writ appeal maintaining that claims for gratuity must be made before the controlling authority under Section 7 of the Payment of Gratuity Act, 1972, and set aside the Single Judge's order on interest.

What did the court decide?

The Writ Appeal is allowed; the order of the Learned Single Judge regarding payment of interest at 12% p.a. is set aside.

The District Cooperative Central Bank… — Pension and Retirement Benefits | Andhra Pradesh HC (2024)

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IN THE HIGH COURT OF ANDHRA PRADESH :: AMARAVATI

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THURSDAY, THE TWENTY SECOND DAY OF FEBRUARY TWO THOUSAND AND TWENTY FOUR

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PRESENT

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THE HON’BLE SRI JUSTICE G.NARENDAR AND THE HON’BLE SRI JUSTICE NYAPATHY VIJAY

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WRIT APPEAL NO: 98 OF 2024

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Writ Appeal under clause 15 of the Letters Patent Appeal preferred against the order dated 20.12.2023 in W.P.No.23218 of 2014, on the file of the High Court.

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Between:

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The District Cooperative Central Bank Ltd., Kakinada, rep. by its Chief Executive Officer (CEO), Nagimalithota, Kakinada, East Godavari District, Andhra Pradesh.

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...APPELLANT/WRIT PETITIONER

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AND

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The Assistant Commissioner of Labour, The Authority^{underSection3ofthe} Payment of Gratuity Act, 1972, Kakinada, East Godavari District, Andhra Pradesh.

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Sri Battula Appa Rao, S/o. Satyanarayana, Retd. Branch Manager DCCB Ltd., R/o. C/o. Gandham Balaram, Ho.No.2-51/1, Old Syndicate Bank Street, Veeravaram, Kirlampudi Mandal, East Godavari District,^A.P.

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...RESPONDENTS/ RESPONDENTS

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lA NO: 1 OF 2024

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Petition under Section 151 CPC praying that in the^{circumstancesstated} in the affidavit filed in support of the petition, the High Court may be pleased to suspend the operation of the order dated 20.12.2023 made in W.P.No.23218 of 2014 pending disposal of the above Writ Appeal.

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Counsel for the Appellant: SRI SRINIVAS BASAVA

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Counsel for the Respondent No.1 : GP FOR LABOUR

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Counsel for the Respondent No.2 : SRI ARVIND KUMAR^KATA

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The Court made the following; ORDER

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^ y

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THE HONOURABLE SRI JUSTICE G. NARENDAR AND JHE HONOURABLE SRI JUSTICE NYAPATHY VIJAY W.A.No.98 of 2024

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JUDGMENT: ('Per Hon tile Sri Justice G.Narendar)

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Heard Sri Srinivas Basava, Learned Counsel for the Appellant and Learned Government Pleader for Labour for respondent and Sri Arvind Kumar Kata, Learned Counsel for respondent No.2/private respondent.

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Section 7 of the Payment of Gratuity Act, 1972 (for short 'the Act") deals with Payment, Determination^oftheAmount of Gratuity due and the consequences of failure and^{aselfcontained} provision, providing for a remedy in the afore mentioned instances. Section 7 including sub-section (3A) of the Act read^asunder:-

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Section: 7 Determination of the amount of gratuity.

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(1) 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.

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(2) As soon as gratuity becomes payable, the employer shall, whether an application referred to in sub-section (1) has been^{madeornot,determine} ttie 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 gratuity so determined.

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(3) The employer shall arrange to pay the amount of gratuity within thirty days from the date it becomes payable to the person to whom the gratuity is payable.

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3A) If the amount of gratuity payable under sub-section (3) is not paid by the employer within the period specified in sub-section (3), the employer shall pay, from the date on which the gratuity becomes payable to the date on which it is paid, simple interest at such rate, not exceeding the rate notified by the Central Government from time to time for repayment of long-term deposits, as that Government may, by notification specify:

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Provided that no such interest shall be payable if the delay in the payment is due to the fault of the employee and the employer has obtained permission in writing from the controlling authority for the delayed payment on this ground.

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The provisions of sub-section (4) of Section 7 of the Act provide the mechanism for determination of gratuity amount.^Inviewofthe statutory provisions providing an alternative & efficacious remedy, the claim could not have been entertained by the Learned Single Judge and the Petitioner ought to have been relegated to approach the Competent Authority.

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The Provisions of Section 7 of the Act would make it clear that any claim petitions for payment are to be made before the jurisdictional authority i.e., controlling authority.

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In that view of the matter, the Writ Appeal requires to be allowed. Accordingly the Writ Appeal is allowed^{andtheOrderof} the Learned Single Judge with regard to payment of^{interestattherate} of 12% p.a. is set aside. This order shall not be construed as, a pronouncement on the merits of the claims and it is open to the controlling authority before whom a claim petition is pending in terms of Section 7(3A) of the Act to consider the same independently. The Controlling Authority shall hear and dispose off the same strictly in accordance with Law and within an outer limit of six (6) months from the date of receipt of a copy of this order.

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There shall be no order as to costs. As a sequel, pending

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applications, if any, shall stand closed.

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//TRUE COPY//

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Sd/-. P.VENKATA RAMANA JOIN^EGISTRAR SECTION OFFICER

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To,

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The Assistant Commissioner of Labour, The Authority^{underSection3ofthe} Payment of Gratuity Act, 1972, Kakinada, East Godavari District, Andhra Pradesh.(BY RPAD)

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One CC to Sri Srinivas Basava, Advocate [OPUC] 3. Two CCs to GP for Labour, High Court of Andhra Pradesh. [OUT] 4. One CC to Sri Arvind Kumar Kata, Advocate (OPUC) 5. Three C.D. Copies. Cnr gl

HIGH COURT

DATED:22/02/2024

V' »

ORDER

WA.No.98 of 2024

ALLOWING THE WRIT APPEAL WITHOUT COSTS

The District Cooperative Central Bank Ltd., v. The Assistant Commissioner of Labour

Case brief

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The District Cooperative Central Bank Ltd., v. The Assistant Commissioner of Labour

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