K.Thangaraj v. the District Collector

Madras HC3 Jun 2025WP/17097/2025

Case brief

AI extract

What is this about?

Gratuity recovery mandamus; Payment of Gratuity Act, 1972, Section 8 recovery certificate; Revenue Recovery Act recovery proceedings; differential gratuity Rs.3,13,848/- with 10% p.a. interest; order dated 28.12.2021 in PG.Case.No.205/2021 unappealed and final; employer Salem Co-operative Sugar Mills Ltd. in default; show cause notice dated 23.02.2022; District Collector, Namakkal directed to recover within 8 weeks; Writ Petition allowed.

What did the court decide?

Mandamus to the 1st respondent (District Collector, Namakkal) to recover the gratuity amount payable to the petitioner, with interest at 10% p.a. from the date it became payable, as per the certificate issued by the 3rd respondent dated 31.03.2023 pursuant to the order dated 28.12.2021, within 8 weeks of receipt of a copy of the order; no costs. ¶¶50

K.Thangaraj Vs the District Collector — Writ and Judicial Review | Madras HC (2025)

What the court decided

AI extract

Outcome

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Issue for consideration

Whether a Writ of Mandamus should be issued directing the 1st respondent (District Collector, Namakkal) to recover from the 2nd respondent the gratuity amount payable to the petitioner, with interest at 10%, as per the recovery certificate issued by the 3rd respondent pursuant to the order dated 28.12.2021 in PG Case No.205/2021.

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Court's answer

The 2nd respondent management admittedly has not complied with the order of the 3rd respondent; consequently the petitioner obtained a recovery certificate from the 3rd respondent, issued in the year 2022, and to date has not received anything towards his gratuity.

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Ratio / Principle

The Writ Petition is allowed: a mandamus is issued to the 1st respondent to recover the gratuity amount with interest at 10% p.a. from the date when it became payable, as per the certificate issued by the 3rd respondent dated 31.03.2023 pursuant to the order dated 28.12.2021, within a period of 8 weeks from receipt of a copy of the order; no costs.

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Detailed headnote1 paragraphs

Madras High Court single-judge order (P.T. Asha, J.) allowing a writ petition by K. Thangaraj, a former Non Muster Roll Employee of the 2nd respondent, Salem Co-operative Sugar Mills Ltd. The Controlling Authority under the Payment of Gratuity Act, 1972 (3rd respondent), by order dated 28.12.2021 in PG.Case.No.205/2021, held the petitioner entitled to differential gratuity and determined Rs.3,13,848/- as payable by the management, with interest at 10% p.a. from the date the amount became payable till payment; the management did not appeal and the order attained finality. On continued non-payment despite a representation and a show cause notice dated 23.02.2022 regarding recovery under the provisions of the Revenue Recovery Act, the 3rd respondent issued a recovery certificate (recorded as dated 31.03.2022 in the prayer; recited as dated 31.03.2023 in the operative order) in keeping with Section 8 of the Payment of Gratuity Act, 1972. Finding the management admittedly in default and the petitioner unpaid to date, the Court issued a mandamus to the District Collector, Namakkal (1st respondent) to recover the gratuity amount with 10% p.a. interest pursuant to the certificate and the order dated 28.12.2021, within 8 weeks. No costs.

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W.P.No.17097 of 2025

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IN THE HIGH COURT OF JUDICATURE AT MADRAS

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Dated : 03.06.2025

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CORAM

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THE HONOURABLE Ms. JUSTICE P.T. ASHA

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W.P.No. 17097 of 2025

K.Thangaraj

...Petitioner

Vs.

1.The District Collector, Namakkal District, Trichy Road, Namakkal – 637 001.

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2.The Management of Salem Co.Operative Sugar Mills ltd., Rep. by its Special Officer, Moganur, Namakkal – 637 015.

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3.The Controlling Authority under the Payment of Gratuity Act, 1972 and the Deputy Commissioner of Labour, O/o.Joint Commissioner of Labour, Yercaud Main Road, Salem – 636 008. ...Respondents

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https://www.mhc.tn.gov.in/judis

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Prayer: Writ Petition is filed under Article 226 of the Constitution of India to issue a Writ of Mandamus, directing the 1^st respondent to recover the gratuity amount payable to the petitioner along with interest at 10 % from the date it became payable to the petitioner as per the certificate issued by the 3^rd respondent dated 31.03.2022 pursuant to the order dated 28.12.2021 in PG Case No.205/2021 passed by him from the 2^nd respondent within a time frame.

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For Petitioner : Mr. K.M.Ramesh Senior Counsel For Mr. V.Subramani For Respondent : Mr. A.N.Purushothaman 1 & 3 Special Government Pleader For Respondent 2: Mr. M.Murali

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O R D E R

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The above Writ Petition is filed for a mandamus directing the 1^st

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respondent to recover gratuity amount payable to the petitioner with

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the 3

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interest from the date it had become payable as per certificate issued by

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the 3^rd respondent dated 31.03.2022 pursuant to the order dated 28.12.2021 in PG Case No.205/2021 from the 2^nd respondent within the

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time frame.

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The brief facts which has culminated in the filing of the Writ Petition is herein below set out.

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The petitioner would submit that he had joined the services of the 2^nd respondent management as a Non Muster Roll Employee (NMR) and he was thereafter regularised in services on 30.09.2020. He had attained superannuation and was relieved from the services. Since he was not paid gratuity amount as per the provisions of Payment of Gratuity Act, the petitioner filed Form - N before the Controlling Authority claiming differential gratuity amount. This application was numbered as PG.Case.No.205/2021 on the file of the 3^rd respondent. By order dated 28.12.2021 the 3^rd respondent had held that the petitioner was entitled to differential amount of gratuity and a sum of

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Rs.3,13,848/- was determined as the amount payable to the petitioner by the 2^nd respondent management and the 3^rd respondent had directed the 2^nd respondent management to pay the aforesaid sum together with interest at 10 % p.a., from the date on which the amount became payable till the date of the payment.

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As against the said order the 2^nd respondent had not preferred

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any appeal and therefore the order had attained finality.

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Despite receiving the order, the 2^nd respondent did not make the payment within 30 days from the date of order. Therefore, the petitioner had sent a representation to the 2^nd respondent management requesting them to comply with the orders to which there is no response. Thereafter, the petitioner had approached the 3^rd respondent to issue a certificate for recovering the said amount in keeping with the provisions of Section 8 of the Payment of Gratuity Act, 1972.

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In response to the above request the 3^rd respondent had also

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issued show cause notice dated 23.02.2022 to the 2^nd respondent as to why the gratuity amount should not be recovered under the provisions

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of Revenue Recovery Act, to which there is no response.

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The petitioner would submit that originally the 2^nd respondent management came within the jurisdiction of the District Collector, Erode. However, after the bifurcation of the districts the 2^nd respondent came under the jurisdiction of the District Collector, Namakkal. Since no action had been taken the petitioner is before this Court seeking the above mandamus.

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Heard the learned counsels and perused the records.

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Admittedly, the 2^nd respondent management has not complied

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with the order of the 3^rd respondent. Therefore, the petitioner had obtained the recovery certificate from the 3^rd respondent. The recovery certificate has been issued in the year 2022 and to date the petitioner has not got a penny towards his gratuity.

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Therefore, the Writ Petition is allowed and a mandamus is issued to the 1^st respondent to recover the gratuity amount with interest at 10% p.a. from the date when it became payable as per the certificate issued by the 3^rd respondent dated 31.03.2023 and pursuant to the order dated 28.12.2021, within a period of 8 weeks from the date of receipt of a copy of this order. No costs.

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03.06.2025

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Index : Yes/No Internet : Yes/No

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kan

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1.The District Collector, Namakkal District, Trichy Road, Namakkal – 637 001.

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2.The Management of Salem Co.Operative Sugar Mills ltd., Rep. by its Special Officer, Moganur, Namakkal – 637 015.

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3.The Controlling Authority under the Payment of Gratuity Act, 1972 and the Deputy Commissioner of Labour, O/o.Joint Commissioner of Labour, Yercaud Main Road, Salem – 636 008.

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P.T. ASHA, J,

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kan

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