CANARA BANK Vs. MYSORE COFFEE CURING WORKS LTD

JUDGEMENT

(1.) The petitioner has challenged the order dated 25.11.2015 passed by the respondent No.3 and the endorsement dated 6.6.2016 issued by the respondent No.4 at Annexures Y and Z respectively whereby the respondent No.3-Controlling Authority has directed the petitioner-Bank to disburse the amount of Rs.14,86,788/- (Rupees Fourteen lakhs eighty six thousand seven hundred eighty eight only) to the respondent-workmen and the Appellate Authority has rejected the appeal filed by the petitioner on the ground of delay.

(2.) The petitioner-Bank was impleaded as respondent No.2 before the Controlling Authority in the proceedings relating to the claim of the workmen seeking for the gratuity amount payable to them by their employer. The petitioner-Bank being a secured creditor has alienated the properties of the employer under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2012 (SARFAESI Act for short). Considering the same, the Controlling Authority has saddled the liability on the petitioner-Bank. The Appellate Authority having considered the appeal filed belatedly, beyond he statutory period of limitation prescribed under the provisions of the Payment of Gratuity Act, 1972 (Act for short), dismissed the same. Hence, the writ petition.

(3.) Learned counsel for the petitioner argued that the Controlling Authority had no jurisdiction to fix the liability on the petitioner-Bank to disburse the gratuity amount which is liable to be paid by the employer under the provisions of the Act. The Controlling Authority erroneously placed reliance on Sections 529, 529-A of the Companies Act, 1956 in arriving at a decision that the dues of the workmen has to be settled by the secured creditor albeit there being no winding up proceedings pending against the employer Company. Reliance is placed on Section 13(9) of the SARFAESI Act to contend that the provisions of Section 529-A of the Companies Act, 1956 are not applicable to the facts of the present case. Learned counsel has referred to host of judgments in support of the aforesaid submissions.