SAILEN SETH Vs. DEPUTY LABOUR COMMISSIONER

JUDGEMENT

(1.) The subject-matter of challenge in this writ petition is an order dated 13th December 2005 passed by the Appellate Authority under the Payment of Gratuity Act 1972 and also a notice dated 30th December 2005 issued by the Controlling Authority under the Payment of Gratuity Act 1972 directing the petitioner to pay a sum of Rs.8,80,499.87 paisa together with admissible interest to Shri Ajit Kumar Roy and 115 others namely the respondents Nos.6-121 herein. The respondents Nos.3 and 4 are the Steel Authority of India Limited and its Assistant General Manager. The respondent No.5 is the State of West Bengal and the respondents Nos.1 and 2 are the authorities under the Payment of Gratuity Act 1972.

(2.) The case of the petitioner briefly stated is as follows:- The petitioner Sailen Seth, carrying on business under the name and style of Seth & Associates, undertook the job of handling of iron and steel materials at the home sales stockyards of the Steel Authority of India Limited at Durgapur for the period between 14th May 1984 and 31st December 1986. A further contract for a period of 5 years commencing from 1st January 1987 was entered into between the parties the duration whereof was extended by mutual consent upto 31st March 1992. Further case of the petitioner is that although the handling contractors were changed from time to time the labour force working under different contractors continued to remain same. After the contract between the petitioner and the Steel Authority of India Limited came to an end the labourers raised their grievance as regards nonpayment of gratuity. The petitioners consistent case has been and still is that he is not liable to make any payment on account of gratuity. The Steel Authority of India Limited withheld a sum of Rs.3,16,858.50 paisa from out of the money payable to the petitioner because of the pendency of the aforesaid claim. A certificate for recovery of the aforesaid sum of Rs.8,80,499.87 paisa was issued against the petitioner which was challenged in this Court by a writ petition which was registered as C.O.14303 (W) of 1995. On 12th September 1995 a conditional interim relief was granted to the petitioner subject to his furnishing a bank guarantee for a sum of Rs.4 lakhs which the writ petitioner duly furnished. On 9th October 2001 the writ petition was dismissed on the ground that the impugned order was appellable under section 7(7) of the Payment of Gratuity Act. The petitioner applied for recalling the order which culminated in an order dated 13th March 2003 by which the petitioner was directed to deposit the balance amount in cash. Aggrieved by the aforesaid order the petitioner preferred an appeal. The Appellate Court disposed of the appeal by an order dated 3rd September 2003 by which the Steel Authority of India was directed to release the amount to the petitioner which had been withheld by them. The petitioner duly recovered the amount from the Steel Authority and furnished a further bank guarantee for Rs.4,80,500/- in addition to the one for Rs.4 lakhs already furnished in favour of the Controlling Authority, Durgapur. The appeal was thereafter heard by the Appellate Authority and the impugned order was passed on 13th December 2005. The sum and substance of the submissions made by Mr. Gupta, learned Senior Advocate appearing for the petitioner is that the there is no employer-employee relationship between the petitioner on the one hand and the respondents Nos.6-121 and therefore the petitioner is not liable to make payment of any gratuity. Mr. Das, learned Advocate appearing for the respondents Nos.6-121 has disputed this submission. So did Mr. Bhattacharya, learned Advocate appearing for the Steel Authority of India Limited. It is not the contention of Mr. Gupta that no gratuity is payable. His contention is that the gratuity is not payable by the petitioner and same is payable by the Steel Authority of India Limited which the latter has disputed.

(3.) Mr. Gupta drew my attention to sub-section 3 of Section 1 of the Payment of Gratuity Act which provides as follows:-