Dismissed¶27

M/S. Eastern Coalfields Ltd. v. Sabra Khatun and Ors.

Calcutta HC13 Jun 2024APOT/210/2023

Case brief

AI extract

What is this about?

Gratuity paid late following employee's death in harness (June 14, 2021); Calcutta High Court upholds Single Judge's award of 6% interest for delay (June 15, 2021 to February 23, 2023) against employer's appeal; appellant's plea that a suit blocked terminal-benefit payment rejected; compassionate appointment to deceased's daughter held of no consequence for terminal benefits; filing delay condoned; APOT dismissed without costs. Keywords: gratuity, death in harness, terminal benefits, compassionate appointment, interest on delayed payment, condonation of delay, Eastern Coalfields Limited, Sabra Khatun, WPO/3147/2022.

What did the court decide?

Condonation of the delay in making and filing the appeal (IA No. GA/1/2023 allowed); appeal dismissed without any order as to costs. ¶27

M/S. Eastern Coalfields Ltd. Vs Sabra Khatun and Ors. — Calcutta HC (2024) — LawSathi Research

What the court decided

AI extract

Outcome

Condonation of the delay in making and filing the appeal (IA No. GA/1/2023 allowed); appeal dismissed without any order as to costs.

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Issue for consideration

Whether the delay in making and filing the appeal (APOT/210/2023) should be condoned under application IA No. GA/1/2023. +2 more

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Court's answer

No material was placed before this Court suggesting that there was a legal impediment to payment of the gratuity contemporaneously or of the terminal benefits.

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Ratio / Principle

The Court condoned the delay in making and filing the appeal, deeming it necessary for the ends of justice.

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Key takeaways

Application IA No. GA/1/2023 seeking condonation was allowed.ratio¶13
Receipt of the compassionate appointment by the daughter of the writ petitioner/appellant is of no consequence so far as the disbursal of the terminal benefits of the deceased employee is concerned, such appointment flowing out of the service conditions of a deceased employee.ratio¶21
The learned Judge rightly allowed interest at the rate of 6% per annum for the delay in disbursement of the gratuity amount for the period from June 15, 2021 till February 23, 2023.ratio

Detailed headnote1 paragraphs

High Court at Calcutta (Civil Appellate Jurisdiction, Original Side), APOT/210/2023 with IA No. GA/1/2023, decision dated June 13, 2024 (Justice Debangsu Basak and Justice Shabbar Rashidi). The appeal by M/S. Eastern Coalfields Limited & Ors. challenged a Single Judge's order of March 24, 2023 passed in WPO/3147/2022, which had taken note that the writ petitioner's husband died in harness on June 14, 2021, was entitled to gratuity, and had been paid on February 7, 2023, and accordingly awarded 6% interest for the delay from June 15, 2021 till February 23, 2023, payable within eight weeks. Counsel for the respondents/petitioners contended that a suit had prevented the appellant from paying the terminal benefits and that the interest direction was harsh, noting the compassionate appointment granted to the petitioner's daughter. The Court held that receipt of a compassionate appointment flows out of the service conditions of a deceased employee and is of no consequence for disbursal of his terminal benefits; that no material before it suggested any legal impediment to contemporaneous payment; and that the learned Judge rightly allowed interest at 6% per annum for June 15, 2021 to February 23, 2023, the appellant having disbursed the gratuity on February 23, 2023 during the pendency of the writ petition. Finding no merit in the appeal, the Court condoned the filing delay (allowing GA/1/2023) and dismissed APOT No. 210 of 2023 without any order as to costs.

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ORDER SHEET

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APOT/210/2023 IA No. GA/1/2023 IN THE HIGH COURT AT CALCUTTA CIVIL APPELLATE JURISDICTION ORIGINAL SIDE

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M/S. EASTERN COALFIELDS LIMITED & ORS. VERSUS SABRA KHATUN & ORS.

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BEFORE:

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The Hon'ble JUSTICE DEBANGSU BASAK AND

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The Hon’ble JUSTICE SHABBAR RASHIDI

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Date : June 13, 2024.

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Appearance: Syed Nurul Arefin, Adv. Syed Moyeenul Arefin, Adv. For the Appellants.

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Mr. Partha Ghosh, Adv. Ms. Simran Sureka, Adv. Mr. Debashis Das, Adv. For the respondents/petitioners.

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The Court :- For the ends of justice, the delay in making and

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filing the appeal is condoned.

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IA No. GA/1/2023 is allowed.

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The appeal is directed against an order dated March 24, 2023

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passed in WPO/3147/2022.

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By the impugned order, learned judge took note of the fact that

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the husband of the writ petitioner died in harness on June 14, 2021. The husband of the petitioner was entitled to gratuity. Such gratuity was paid

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on February 7, 2023. The learned Judge, therefore, awarded 6% interest for the delay in payment for the period from June 15, 2021, being the next date subsequent to the date of death of the husband of the writ petitioner, till the date of payment of being February 23, 2023. Learned Single Judge further directed that, the interest be paid within eight weeks from the date of the order.

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Learned advocate appearing for the respondents/petitioners submits that, the appellant was prevented by a suit from making payment of the terminal benefits. He submits that the direction for payment of interest is harsh. The daughter of the writ petitioner was granted compassionate appointment.

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Receipt of the compassionate appointment is right which flows out of the service conditions of a deceased employee. Therefore, the receipt of such compassionate appointment by the daughter of the writ petitioner/appellant is of no consequence so far as the disbursal of the terminal benefits of the deceased employee.

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The appellant disbursed the gratuity on February 23, 2023 during the pendency of the writ petition. No other material is placed before this Court to suggest that there was a legal impediment on payment of the gratuity contemporaneously or the terminal benefits.

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Learned Judge rightly allowed interest at the rate of 6% per annum for the delay in disbursement of the gratuity amount for the period from June 15, 2021 till February 23, 2023.

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In such circumstances, we find no merit in the present

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appeal.

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APOT No. 210 of 2023 is dismissed without any order as to

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costs.

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(DEBANGSU BASAK, J.)

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