Payment of gratuity Act – Sick Industrial Company – suspension of legal proceedings – payment of gratuity – Appeal from controlling authority – pre-requisite condition of deposit of gratuity amount – whether appeal can be accepted without depositing the gratuity amount – Held, No.
The Petitioner Company declared sick and a scheme for revival had been framed. The employee of the Petitioner’s contractors had filed applications before the controlling authority seeking gratuity from the Petitioner and the Authority had directed payment of gratuity. Petitioner preferred appeal against the order of the controlling authority, seeking waiver of the pre-requisite condition of deposit of gratuity amount determined by the controlling authority.
Decision: The application was rejected and the Petitioner was directed to deposit the amount which was a condition precedent for preferring an appeal under section 7(7) of the 1972 Act.
Section 7(7) of the Payment of Gratuity Act, 1972, is mandatory in nature and the provisions of sections 22(3) and (4) of the Sick Industrial Companies (Special Provisions) Act, 1985, will not have any effect. The Payment of Gratuity Act, 1972 and Sick Industrial Companies (Special Provisions) Act, 1985 are Independent Acts operating in different fields. To entertain appeal under section 7(7) of the 1972, Act the Appellant is required to deposit the gratuity amount.
[Cement Corporation of India Ltd V Regional Labour Commissioner (Central), Karnataka High Court]
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