MOHAN JUTE MILLS LTD. Vs. SMT. SABILA KHATUN

JUDGEMENT

(1.) THE indisputable facts in this case are that the husband of Respondent No. 1, namely, Allahuddin, retired on 20 -9 -1998 on attaining the age of superannuation from the Petitioner - Jute Mill. Respondent No. 1 filed an application claiming gratuity to the tune of Rs. 36,702/ - before the Controlling Authority under the Payment of Gratuity Act, 1972 (henceforth 'the Act, 1972') at Raigarh. The question before the Controlling Authority, as raised by the present Petitioner, was as to whether the employee, i.e., the husband of Respondent No. 1 was entitled to gratuity for the period which Respondent No. 1 has claimed after a lapse of almost 1 1/2 years. The Controlling Authority, rejecting the objection of the Petitioner, directed the Petitioner herein to pay a sum of Rs. 36,702/ - as gratuity to the widow of the employee, i.e., Respondent No. 1 herein, within a period of 30 days, vide order dated 27 -6 -2005 (Annexure P -III). Being aggrieved, the Petitioner - Jute Mill filed an appeal before the Appellate Authority under Section 7 of the Act, 1972, wherein the Petitioner specifically raised the dispute in ground No. 2 of the appeal.

(2.) SECOND proviso to Sub -section (7) of Section 7 of the Act, 1972 provides for deposit of an amount equal to the amount of gratuity required to be deposited under Sub -section (4) of Section 7 of the Act, 1972. Sub -section (4) of Section 7 of the Act, 1972 provides that in case of any dispute with regard the amount of gratuity, the employer shall deposit with the Controlling Authority such amount as the employer admits to be payable by it as gratuity. Sub -section (4) and Sub -section (7) of Section 7 of the Act, 1972 read as under:

(3.) PROVIDED further that no appeal by an employer shall be admitted unless at the time of preferring the appeal, the Appellant either produces a certificate of the controlling authority to the effect that the Appellant has deposited with him an amount equal to the amount of gratuity required to be deposited under Sub -section (4), or deposits with the appellate authority such amount. A bare reading of the above provisions makes it clear that if the amount of gratuity payable is in dispute, the employer is required to deposit such amount as the employer admits to be payable by it as gratuity. In the facts of the case, the Petitioner herein, i.e., the employer has already disputed the gratuity amount and has paid the amount which the Petitioner admits to be payable by it as gratuity on 26 -12 -1998. In view of the clear provisions of law and the facts of the case, the appeal of the Petitioner Jute Mill should not have been dismissed by the Appellate Authority on the ground of non -deposit of the required amount as per Sub -section (7) of Section 7 of the Act, 1972.