CIMMCO LTD Vs. STATE OF RAJASTHAN

JUDGEMENT

(1.) The issue in the present writ petitions, which are being disposed of by this common order, is fundamentally the illegality of proceedings taken under the Payment of Gratuity Act, 1972 (hereinafter 'the Act of 1972') for recovery of gratuity amount determined by the Controlling Authority under its order dated 4.11.2006 in spite of the fact that subsequent to the aforesaid order, the workers/employees of the petitioner-Company through their authorized representative and the management of the petitioner-Company have entered into a settlement dated 5.3.2008 referable to section 18 of the Industrial Disputes Act, 1947 (hereinafter 'the Act of 1947') which has thereafter been incorporated in a sanctioned scheme on 11.3.2010 under section 18 of the Sick Industrial Companies (Special Provisions) Act, 1985 (hereinafter 'the Act of 1985') by the Board for Industrial and Financial Reconstruction (hereinafter 'BIFR'). The facts of the case are that the petitioner-Company declared lockout on 13.11.2000. On a proper application being made as mandated under the provisions of the Act of 1985, the petitioner-Company was declared a sick company by the BIFR on 21.8.2002. Subsequently, an operating agency was appointed by BIFR and the prospects of the petitioner-Company being revived were under consideration of the BIFR.

(2.) In the meantime, the workers/employees of the petitioner-Company aggrieved of the non-payment of their gratuity in terms of the Act of 1972 approached the Controlling Authority for payment of due gratuity under section 4 of the Act of 1972 and interest thereon under section 7(3-A) thereof. Vide order dated 04.11.2006, the Controlling Authority under the Act of 1972 was pleased to pass an order directing that the gratuity amount of the workers/employees of the petitioner-Company as computed by it be paid along with interest @ 9% per annum thereon. No appeal against the order dated 4.11.2006 appears to have been filed by the petitioner-Company under the Act of 1972 consequent to which the order dated 4.11.2006 attained finality. Subsequently, owing to non-payment of gratuity amount in spite of the finality of the order dated 4.11.2006, the workers/employees of the petitioner-Company took steps for the recovery of the amount determined by the Controlling Authority.

(3.) For this purpose, the Controlling Authority appears to have remitted the matter to the District Collector, Bharatpur, who in turn forwarded the requisition to the Sub-Divisional Officer, Bharatpur. The SDO, Bharatpur consequent to the final order dated 4.11.2006 by the Controlling Authority sought to make recoveries of the gratuity amount determined qua each of the workers/ employees along with interest @ 9% per annum thereon.