Ramsingh Somabhai Baria and Others vs Collector and Another

K.A. Puj, J.—The Petitioners have filed this petition under Article 226 of the Constitution of India praying for the directions to the Respondent No. 1 Collector, Vadodara to immediately recover the gratuity amount as per the certificates pending with him as shown in Annexure-''E'' and to proceed with the auction sale of the Respondent No. 2''s properties attached by him, forthwith without any further delay and to make payment of the same to the individual workman as per its record.

This Court issued notice on 6th October 2010. Further orders were passed on 15th and 23rd November 2010. Ms. Megha Jani, the learned advocate appeared for the Respondent No. 2 and filed affidavit-in-reply on 20th December 2010. Ms. Monali Bhatt, the learned AGP appearing for the Respondent No. 1 has produced on record the details regarding the amount collected from the Respondent No. 2 Company and the amount disbursed to the respective workman.

The claim of the Petitioners in the present petition is that, around 150 employees of the Respondent No. 2 Company including the Petitioner Nos. 1 and 2 have been retired from service but no amount of gratuity has been paid to them. Hence, all of them approached the Controlling Authority under the Payment of Gratuity Act, 1972 by separate application and the authority, after hearing the parties, passed separate orders directing the Respondent No. 2 employer to pay gratuity. Despite these orders and despite the agreement by the Respondent No. 2 employer with the Petitioner No. 3 Union with regard to the amount of gratuity, immediately after retirement, the amount has not been paid and hence the properties of the Company were sought to be attached. It is averred in the petition that around Rs. 1.5 crores are to be paid to the employees of the Respondent No. 2 Company by way of gratuity.

Pursuant to the notices issued by the Respondent No. 1, till this date the Respondent No. 2 employer has deposited amount of Rs. 1,53,44,702=00. The said amount was disbursed and/or to be disbursed by the Mamlatdar in favour of the respective employees. The detailed statements are produced before the Court showing as to how much amount has been disbursed. As per Annexure-''A'', around 24 employees have already been paid the gratuity amount with interest. As per Annexure-''B'', 69 employees were paid only the principal amount. As per Annexure-''C'', 19 cheques are ready, however, except two employees 17 employees have still not collected their cheques. From these details, it clearly appears that so far as the principal amount is concerned, the Respondent No. 2 - employer has deposited the said amount with the Collector. The question now is only with regard to the interest; that too, 24 employees have already received their amount with interest. The remaining employees are yet to receive the interest amount. The Respondent No. 2 is, therefore, required to deposit the interest amount with the Collector. If that amount is computed @ 10; on the principal amount already deposited, it cannot be more than Rs. 15 lakhs.

Ms. Megha Jani, the learned advocate for the Respondent No. 2 states that the Respondent No. 2 would pay the said amount on or before 31st January 2011.

If this amount is deposited with the Collector, nothing remains in this petition.

In the above view of the matter, the Court hereby directs the Respondent No. 2 to deposit the interest amount to be calculated at the rate of 10% per annum on the aforesaid amount, with the Collector on or before 31st January 2011. On receipt of the said amount from the Respondent No. 2 employer, the Mamlatdar shall disburse the said amount amongst the employees in whose favour the principal amount is already disbursed or the cheques for such disbursement are kept ready.

With this directions and since the amount stated in the recovery certificates has already been paid by the employer, nothing remains in this petition and hence, it is accordingly disposed of.

Liberty is, however, reserved to the Petitioners to revive the petition in case the Respondent No. 2 will not deposit the interest amount on or before 31st January 2011.