COMMISSIONER COIMBATORE CITY MUNICIPAL CORPORATION COIMBATORE Vs. APPELLATE AUTHORITY JOINT COMMISSIONER OF LABOUR COIMBATORE

JUDGEMENT

(1.) THE petitioner is the Coimbatore Corporation represented by its Commissioner. In this Writ Petition, the petitioner Corporation challenges the order of the Appellate Authority under the Payment of Gratuity Act, 1972, namely, the 1st respondent in AGA.26/2004 wherein and by which he confirmed the order passed by the 2nd respondent Controlling Authority made in G.A.No.184/2003.

(2.) IN the present case, there is no dispute regarding the facts. The admitted facts were that the 3rd respondent was an employee working under the petitioner Corporation and was allotted to the Coimbatore Electricity Distribution Wing of the Corporation. Subsequently, after serving the Corporation, he resigned from the services of the Corporation on 12.4.1993.

(3.) HOWEVER, the authority found that in the present case the liability to pay gratuity only vests with the petitioner Corporation as his resignation was accepted only by the Corporation. The moment, his resignation was accepted, then under Section 7(3) of the Payment of Gratuity Act, the employer shall arrange to pay the amount of Gratuity within 30 days. It is also stated that in the absence of any statutory transfer of the service of the employees and also fixing the liability on transfer for all the past liabilities, the petitioner who is the employer alone is bound to pay. Any private arrangement in such matters will be hit by Section 14 of the Payment of Gratuity Act. Aggrieved by the order passed by the 2nd respondent dated 11.11.2003, the petitioner Corporation preferred an appeal under Section 7(7) of the Act.