CUTTACK CENTRAL CO-OPERATIVE BANK LTD Vs. JOINT LABOUR COMMISSIONER, BHUBANESWAR-CUM-APPELLATE AUTHORITY

JUDGEMENT

(1.) The instant writ appeal arises from a judgment dtd. 8/11/2024 passed in WP(C) No.9493 of 2022 by the Single Bench, wherein the writ petition filed by the appellant challenging the judgment and order dtd. 28/3/2022 passed by the Appellate Authority under the Payment of Gratuity Act, 1972 was dismissed.

(2.) Undeniably, respondent no.4 was employed as Deputy Manager in the appellant-Bank and attained the age of superannuation with effect from 31/7/2010. Despite having allowed to retire from service without any blemish or disciplinary proceeding having initiated while in employment, the retiral benefit was withheld by the appellant which constrained the respondent no.4 to move to the authority under the Payment of Gratuity Act, 1972 for release of the gratuity amount. The appellant took a plea that said respondent no.4 stood as a guarantor to a loan disbursed to the principal borrower, who failed and neglected to pay the loan amount and, therefore, the liability to pay the amount is coextensive. The recovery thus can be made from her and for such reason, the amount of gratuity was not disbursed to the respondent no.4. The authority did not find any conditions, stipulation and/or powers conferred under the statute upon the appellant to withhold the gratuity amount and directed the payment to be made. The order was assailed before the Appellate Authority under the said Act, but the appellant could not emerge successful therefrom. Ultimately, the writ petition was filed assailing the order of the Appellate Authority reiterating and restating the factual grounds as taken before the original authority, but the writ Court did not find any power conferred upon the appellant to deny the disbursement of the gratuity amount to the respondent no.4 after she attained the age of superannuation.

(3.) Learned counsel for the appellant vociferously submits that since respondent no.4 stood as guarantor to a loan disbursed to principal borrower, any default or the liability is also imposed upon her and unless the entire loan amount is liquidated, the gratuity amount cannot be released in favour of the respondent no.4.