KARNATAKA STATE ROAD TRANSPORT Vs. DEPUTY LABOUR COMMISSIONER

JUDGEMENT

(1.) THE Road Transport Corporation aggrieved by the order dated 31.3.2009 in PGA/SR-97/2004-05, Annexure-A of the Assistant Labour Commissioner and Controlling Authority under the Payment of Gratuity Act, 1972 (for short 'the Act') filed appeal registered as PGA/SR-19/2009-10 before the Deputy Labour Commissioner and Appellate Authority which when rejected by order dated 7.8.2009, Annexure-C has filed this petition invoking Article 227 of Constitution of India.

(2.) LEARNED counsel for the petitioner submits that the 3rd respondent while in service of the Corporation with raised loans with financial institutions, which when not repaid at the time of his dismissal from service, the Corporation being obliged in terms of an agreement with the financing institutions paid the following amounts due: (a) KSRTC Society Loan, Hassan - ? 20,013/- (b) KSRTC Society Loan, Bangalore - ? 14,184/- (c) SBM, Arasikere - ? 33,884/- Total - ? 68,081/-

(3.) LEARNED counsel for the petitioner is unable to point out to any provision of the Act, permitting an employee to enter into a contract with the employer, to pay out of his gratuity sums of money due and payable to financiers of the employee. In the absence of a specific provision in the Act, while regard being had to Section 13 of the Act, providing protection of gratuity in the event of execution of any decree or order in any Civil Court or Revenue or Criminal Court, it is too far fetched for the petitioner to contend that the employer has a right to deduct the said amounts due by the employee from out of the employee's gratuity and pay the financial institutions.