CENTRAL COALFIELDS LIMITED Vs. REGIONAL LABOUR COMMISSIONER

JUDGEMENT

(1.) THIS writ application filed by M/s Central Coalfields Limited, a Government Company incorporated and registered under the Companies Act, 1956 is directed against the order dated 22.9.2003 passed by Regional Labour Commissioner(C), Dhanbad, respondent no. 1 whereby and whereunder the appellate authority upheld the order dated 27.2.2003 passed by the controlling authority under the Payment of Gratuity Act -cum -Assistant Labour Commissioner(C) holding therein that the respondent no. 3 is entitled to receive the gratuity amount to the tune of Rs. 3.50 lacs with interest @ 10% per annum for the period from 11.6.2002 to 22.4.2003.

(2.) THE facts giving rise this application are that a departmental proceeding was initiated against the respondent no. 3, Sri Gupteshwar Nath, while he was posted as Area Finance Manager, Argada Area of M/s Central Coalfields Limited under Rule 29 of the Conduct, Discipline and Appeal Rules of Coal India Limited on the charges of committing financial irregularities putting loss to the Central Coalfields Limited to the extent of Rs. 52,00,353/ -. However, during the pendency of the said departmental proceeding, respondent no. 3 superannuated on 31.1.2002, still proceeding stood continued in terms of clause 34.2 of the Conduct, Discipline and Appeal Rules, 1978 arid also in terms of Rule 34.3 stipulating therein that disciplinary authority may withhold payment of gratuity, during the pendency of the departmental proceeding and may also pass an appropriate order for recovery of the amount from the gratuity, if found guilty of offence/misconduct as mentioned in Section 4(6) of the Payment of Gratuity Act, or have caused pecuniary loss to the Company by misconduct or negligence. However, respondent no. 3 on 7.6.2002 filed an application In 'Form N' before the controlling authority under the provisions of Payment of Gratuity Act for release of gratuity amount.

(3.) SUBSEQUENTLY , keeping in view the decision rendered by the Division Bench of this Court in L.P.A. No. 309 of 2002 holding therein that the controlling authority does not have any authority to hold an enquiry in terms of Section 7(4)(c) of the Payment of Gratuity Act where a departmental proceeding in respect to an employee is pending, this writ application seems to have been filed but the decision rendered by this Court in L.P.A No. 309 of 2002 on being challenged before the Hon'ble Supreme Court in a case of Jaswant Singh Gill vs. Bharat Coking Coal Limited and Others [(2007)1 SCC (L&S) 584] was set aside holding therein that Rule 27 of the Coal India Executives' Conduct, Discipline and Appeal Rules, 1978 making stipulation for recovery from pay or gratuity of the whole or part of any pecuniary loss caused to the Company by negligence or breach of order and also Rule 34.2 prescribing continuance of the proceeding even after retirement of an employee and also Rule 34.3 prescribing for withholding payment of gratuity or recovery from gratuity of the whole or part of any pecuniary loss caused to the Company would never prevail over statutory provision of Section 4(6)(a) of the Payment of Gratuity Act which not only creates right to payment of gratuity but also lays down certain condition disqualifying from getting benefit under the Payment of Gratuity Act. According to which forfeiture of whole amount of gratuity or part can be enforced in the event his services being terminated for his disorderly conduct or any other act of violence on his part or if he has been convicted for an offence involving moral turpitude.