{"id":68109,"date":"2010-09-08T00:00:00","date_gmt":"2010-09-07T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/the-arumuganeri-salt-workers-vs-a-rajan-on-8-september-2010"},"modified":"2017-11-11T11:54:38","modified_gmt":"2017-11-11T06:24:38","slug":"the-arumuganeri-salt-workers-vs-a-rajan-on-8-september-2010","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/the-arumuganeri-salt-workers-vs-a-rajan-on-8-september-2010","title":{"rendered":"The Arumuganeri Salt Workers vs A.Rajan on 8 September, 2010"},"content":{"rendered":"<div class=\"docsource_main\">Madras High Court<\/div>\n<div class=\"doc_title\">The Arumuganeri Salt Workers vs A.Rajan on 8 September, 2010<\/div>\n<pre>       \n\n  \n\n  \n\n \n \n BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT\n\nDATED: 08\/09\/2010\n\nCORAM\nTHE HONOURABLE MR.JUSTICE K.CHANDRU\n\nW.P.(MD)No.2922 of 2009\nand\nM.P.(MD)No.1 of 2009\n\n\nThe Arumuganeri Salt Workers\nCo-operative Production and Sale\nSociety Ltd., No.01291 Arumuganeri\nArumuganeri Post, Thoothukudi District,\nrepresented by through its\nSpecial Officer.\t\t\t\t... Petitioner\n\nvs\n\n1.A.Rajan\n2.The Appellate Authority,\n   (Under the Payment of Gratuity Act)\n   Indira Nagar, Anna Nagar,\n   Madurai-625 020.\t\t\t\t... Respondents\n\n\nPRAYER\n\nWrit Petition filed under Article 226 of the Constitution of India praying for\nthe issuance of a Writ of Certiorari, to call for the records on the file of the\nrespondents relating to the order passed by the second respondent in P.G.Appeal\nNo.47\/2008, dated 27.01.2009 and quash the same.\n\n!For  Petitioner  ... Mr.V.O.S.Kalaiselvam\n^For  Respondents ... No Appearance\n\t\t\t\t\t\t\n\t     ******\n\n\n:ORDER\n<\/pre>\n<p>*******<br \/>\n\t\tThe petitioner is a Salt Workers Co-operative Production and Sale<br \/>\nSociety Limited at Arumuganeri. They have come forward to challenge the order<br \/>\npassed by the second respondent, who is the appellate authority under the<br \/>\nPayment of Gratuity Act, 1972.\n<\/p>\n<p>\t\t2. The first respondent in this Writ Petition, who was employed as a<br \/>\nworker in the Society, on daily wages basis, filed an application for payment of<br \/>\ngratuity, on his having resigned his employment on 01.06.2003.  Notwithstanding<br \/>\nhis resignation, the petitioner Society did not pay gratuity, which forced the<br \/>\nfirst respondent to move the controlling authority under the Payment of Gratuity<br \/>\nAct, 1972. His complaint was taken on file as P.G.No.337 of 2003 and notice was<br \/>\nissued to the writ petitioner. Before the controlling authority, the petitioner<br \/>\ntook up the contention that the first respondent was daily rated employee and<br \/>\nwas not appointed in a regular manner, inasmuch as he was not sponsored through<br \/>\nEmployment Exchange and his appointment was the irregular appointment and the<br \/>\naction of regularizing him with effect from 01.03.1999 was itself is illegal<br \/>\nand, therefore, the audit department has objected for making any payment to the<br \/>\nfirst respondent. These contentions were rejected rightly so by the controlling<br \/>\nauthority. The controlling authority, by referring to Section 14 of the Payment<br \/>\nof Gratuity Act, 1972, which has overriding effect over the other enactments,<br \/>\nfound that the first respondent was eligible for gratuity for the period of<br \/>\nservice from 30.12.1996 to 01.06.2003 in terms of Section 4(1) of the Payment of<br \/>\nGratuity Act, 1972. Therefore, for the six years service rendered by him and on<br \/>\nthe basis of his last drawn pay of Rs.2,800\/-, the total gratuity was worked out<br \/>\nto Rs.9,692\/-. The authority, without reference to Sections 7(3) and 7(3A) of<br \/>\nthe Payment of Gratuity Act, 1972, had directed interest payment to be made, if<br \/>\nthe gratuity is not paid within 30 days from the date of his order.\n<\/p>\n<p>\t\t3. It is the stand of the petitioner Society that they have paid the<br \/>\ngratuity within 30 days. The matter did not end therein. The first respondent<br \/>\nfiled an appeal under Section 7(7) of the Payment of Gratuity Act, 1972, before<br \/>\nthe second respondent stating that the controlling authority did not grant<br \/>\ninterest on the delayed payment of gratuity. The appeal filed by the first<br \/>\nrespondent was taken on file as P.G.A.No.47 of 2008 by the second respondent and<br \/>\nnotice was issued to the petitioner Management.\n<\/p>\n<p>\t\t4. The short question that arose before the second respondent was<br \/>\nwhether the first respondent is entitled for interest on the delayed payment of<br \/>\ngratuity. The second respondent, by its order dated 27.01.2009, found that the<br \/>\nfirst respondent is entitled for interest on the gratuity in terms of Section<br \/>\n7(3) and 7(3A) of the Payment of Gratuity Act, 1972 and, therefore, he directed<br \/>\n10% interest to be paid from the date on which the gratuity becomes due till the<br \/>\ndate on which it was paid by the petitioner Management. Aggrieved by the said<br \/>\norder, the present Writ Petition has been filed.\n<\/p>\n<p>\t\t5. Mr.V.O.S.Kalaiselvam, learned counsel appearing for the<br \/>\npetitioner contended that the payment of interest will arise only when there is<br \/>\na delayed payment and in this case, there is no delay, since they have paid<br \/>\ngratuity as ordered by the controlling authority and hence, the question of<br \/>\npayment of interest will not arise.\n<\/p>\n<p>\t\t6. This Court is unable to accept the said statement, since the<br \/>\nentire controversy relevance legal provision. It is necessary to extract Section<br \/>\n7(3) and Section 7(3A) of the Payment of Gratuity Act, 1972, which read as<br \/>\nfollows:-\n<\/p>\n<p>\t&#8220;(3) The employer shall arrange to pay the amount of gratuity within<br \/>\nthirty days from the date it becomes payable to the person to whom the gratuity<br \/>\nis payable.\n<\/p>\n<p>\t(3A) If the amount of gratuity payable under sub-section (3) is not paid<br \/>\nby the employer within the period specified in sub-section (3), the employer<br \/>\nshall pay, from the date on which the gratuity becomes payable to the date on<br \/>\nwhich it is paid, simple interest at such rate not exceeding the rate notified<br \/>\nby the Central Government from time to time for repayment of long-term deposits,<br \/>\nas that Government may, by notification specify:\n<\/p>\n<p>\tProvided that no such interest shall be payable if the delay in the<br \/>\npayment is due to the fault of the employee and the employer has obtained<br \/>\npermission in writing from the controlling authority for the delayed payment on<br \/>\nthis ground.&#8221;\n<\/p>\n<p>\t\t7. When Section 7(3A) talks about the gratuity becomes payable, it<br \/>\nis useful to refer to Section 4(1) of the Payment of Gratuity Act, 1972, which<br \/>\nreads as follows:-\n<\/p>\n<p>\t&#8220;4.Payment of gratuity,- (1) Gratuity shall be payable to an employee on<br \/>\nthe termination of his employment after he has rendered continuos service for<br \/>\nnot less than five years,-\n<\/p>\n<p>\t(a) on his superannuation, or\n<\/p>\n<p>\t(b) on his retirement or resignation, or\n<\/p>\n<p>\t(c) on his death or disablement due to accident or disease:<br \/>\n\tProvided that the completion of continuous service of five years shall not<br \/>\nbe necessary where the termination of the employment of any employee is due to<br \/>\ndeath or disablement.&#8221;\n<\/p>\n<p>\t\t8. Therefore, the date i.e., relevant for determination of interest<br \/>\nis the date on which the gratuity becomes payable, which in the present case,<br \/>\nwhen the first respondent resigned his employment on 01.06.2003. Thereafter,<br \/>\nwhen the first respondent issued notice for payment of gratuity, the petitioner<br \/>\nemployer did not honour the notice, nor deposit the amount with the controlling<br \/>\nauthority raising whatever disputes that they want to raise.  On the contrary,<br \/>\nit is only when the workman instituted a claim before the controlling authority,<br \/>\nthey contended about the irregular nature of his employment and his alleged<br \/>\ndisqualification from receiving gratuity. Therefore, from the beginning, it is<br \/>\nthe stand of the petitioner society that the first respondent is not eligible<br \/>\nfor gratuity. Therefore, there is no gain saying that they have paid gratuity,<br \/>\npursuant to the order passed by the controlling authority. If Section 7(3) and<br \/>\nSection 7(3A) of the Payment of Gratuity Act, 1972, are read together, then<br \/>\nthere is no difficulty in understanding the eligibility for receiving interest.<br \/>\nIn the present case, the appellate authority has correctly construed the legal<br \/>\nprovisions and there is no case made out to interfere with the interpretation<br \/>\nplaced by the authority.\n<\/p>\n<p>\t\t9. Under the said circumstances, the Writ Petition stands dismissed.<br \/>\nThe petitioner Society shall pay the amount due pursuant to the impugned order,<br \/>\nwithin a period of 30 days from the date of receipt of a copy of this order,<br \/>\nwithout further driving the first respondent to any other forum. Consequently,<br \/>\nthe connected miscellaneous petition is closed. However, there will be no order<br \/>\nas to costs.\n<\/p>\n<p>SML<\/p>\n<p>To<\/p>\n<p>The Appellate Authority,<br \/>\n(Under the Payment of Gratuity Act)<br \/>\nIndira Nagar, Anna Nagar,<br \/>\nMadurai-625 020.\t<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Madras High Court The Arumuganeri Salt Workers vs A.Rajan on 8 September, 2010 BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT DATED: 08\/09\/2010 CORAM THE HONOURABLE MR.JUSTICE K.CHANDRU W.P.(MD)No.2922 of 2009 and M.P.(MD)No.1 of 2009 The Arumuganeri Salt Workers Co-operative Production and Sale Society Ltd., No.01291 Arumuganeri Arumuganeri Post, Thoothukudi District, represented by through its [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[8,13],"tags":[],"class_list":["post-68109","post","type-post","status-publish","format-standard","hentry","category-high-court","category-madras-high-court"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>The Arumuganeri Salt Workers vs A.Rajan on 8 September, 2010 - Free Judgements of Supreme Court &amp; 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