STANDARD STONEWARES AND TILES Vs. APPEELLATE AUTHORITY

JUDGEMENT

(1.) The question for consideration was whether the deposit of the entire amount directed to be paid under S.7(4)(c) of the Payment of Gratuity Act (hereinafter referred to as "the Act"), was a condition precedent for admitting an appeal under S.7(7) of the Act.

(2.) The petitioner establishment, Standard Stonewares and Tiles, Thaikkattukara, Aluva, was a unit of Sudarsan Clay and Ceramics Ltd., Aluva. Respondents 2 to 15 were employees of the petitioner and they had retired from service. They were paid gratuity. Respondents 2, 3 and 8 to 12 preferred claim before the Authority under the Payment of Gratuity Act, (for short, "the Authority"), claiming interest on the gratuity amount alleging delayed payment. Respondents 4 to 7 and 13 to 15 filed claim for arrears of gratuity with interest and also interest on the amount already paid on the ground of delay. The Authority allowed the claim made by R2 to R15 by Ext. P2 order. The petitioner filed an appeal before the Appellate Authority challenging the above order. They deposited the arrears of gratuity amount ordered to be paid by the Authority, but did not remit the amount ordered to be paid towards interest on the delayed payment of gratuity. The Appellate Authority rejected the appeal by Ext. P9 order on the ground that the entire amount ordered to be paid by the Authority was not deposited as stipulated by the 2nd proviso to S.7(7) of the Act. The above order, Ext. P9, is under challenge.

(3.) Heard the learned counsel for the petitioner, learned counsel for the employees and the learned Government Pleader.