Punjab Water Resources Management and Development Corporation Ltd v. The Controlling Authority Under the Payment of Gratuity Act, 1972, Chandigarh and Others

o o INoTHEoHIGHoCOURToOFoPUNJABoANDoHARYANAoATo CHANDIGARHo o o o o o o o CWP-19196-2023o(O&M)o o o o o o o o Dateoofodecisiono:12.12.2023o o PUNJABoWATERoRESOURCESoMANAGEMENToANDo DEVELOPMENToCORPORATIONoLIMITEDoTHROUGHo ITSoMANAGINGoDIRECTOR.o o o o o o o o o o …Petitionero o Versuso o THEoCONTROLLINGoAUTHORITYoUNDERoTHEoPAYMENTo OFoGRATUITYoACT,o1972,oCHANDIGARHoANDoOTHERSo o o o o o o o o o o …Respondentso o CORAM:oo HON'BLEoMR.oJUSTICEoHARSHoBUNGERo Presento:o Mr.oRahuloVerma,oAdvocateo o o forotheopetitioner.o o HARSHoBUNGER,oJ.o(ORAL)o o oPetitionero (Punjabo Watero Resourceso Managemento ando DevelopmentoCorporationoLimited)ohasofiledotheoinstantowritopetitionoundero Articleso226/227oofotheoConstitutionoofoIndiaoforoissuanceoofoaowritoinotheo natureoofocertiorarioforoquashingotheoorderodatedo03.02.2023o(AnnexureoP-6)o passedo byo theo Controllingo Authorityo undero theo Paymento ofo Gratuityo Act,o 1972o(foroshorto`theo1972oAct');owhereby,oanoapplicationofiledobyorespondento No.3,ohereino(JaswantoSinghoRawat)oclaimingogratuityounderotheo1972oActo hadobeenoallowedoandotheopetitioner-Corporationowasodirectedotoomakeotheo paymentoofobalanceoamountoofogratuity.oo o o Petitionerohasoalsoolaidochallengeotootheoorderodatedo01.08.2023o (Annexureo P-7)o passedo byo theo Appellateo Authorityo undero theo 1972o Act,o whereby,o theo appealo filedo byo theo petitioner-Corporationo againsto theo ordero (AnnexureoP-6)opassedobyotheoControllingoAuthority,ohasobeenodismissed.o

2.o o Briefly,otheoorespondentoNo.3,oohereinofiledoanoapplicationoundero theo 1972o Act,o claimingo theo amounto ofo gratuityo ono theo pleao thato heo waso appointedo aso ao Senioro Assistanto ono 06.03.1978o ando heo remainedo ino continuousoemploymentowithotheopetitioner-Corporationofromowhereoheogoto retiredouponoattainingotheoageoofosuperannuationoono30.11.2018.oRespondento no.3oclaimedothatoatotheotimeoofohisoretirement,oheowasodrawingoaosalaryoofo Rs.53,056/-o p.m.o ando heo waso entitledo foro gratuityo amountingo too Rs.12,54,978/-;ohowever,otheopetitioner-Corporationohadomadeopaymentoofo gratuityoamountoofoonlyoRs.10,00,000/-oandothatotoo,oafteroaodelayoofomoreo thanothreeomonths.oTherefore,orespondentoNo.3oprayedothatoanoappropriateo directionsobeoissuedotootheopetitioner-Corporationotoopayotheobalanceoamounto ofogratuityoofoRs.2,54,978/-oalongowithointerestotillotheodateoofopaymentoasopero theoprovisionsoofotheo1972oAct.o

3.o o Theoafore-saidoclaimooforespondentoNo.3owasocontestedobyotheo petitioner-Corporation;owherein,oaopreliminaryoobjectionoregardingoterritorialo jurisdictionowasoraised.oItowasotheofurtherostandoofotheopetitioner-Corporationo thatoitoisoaonon-profitomakingoGovernmentoUndertaking,ohavingonoosourceoofo revenueoofoitsoownoandowasofullyodependentouponotheoGovernmentoofoPunjabo foro releaseo ofo fundso eveno foro theo purposeso ofo paymento ofo salaryo too itso employeesoandoalsootheoretiralobenefitsoi.e.ogratuity,oleaveoencashmentoetc.otoo theoretiredoemployees.oOnomerits,otheopetitioner-Corporationodeniedoallotheo avermentsomadeobyorespondentoNo.3oinohisopetition.o

4.o o Fromootheoopleadingsooofootheooparties,ootheoControllingoAuthorityoo o framedotheofollowingoissueso:-o "(1)o Whetherotheoapplicantoisoentitledoforotheoamountoofo gratuityoasoclaimedooronoto?o

(2)o Relief,oifoany?"oo

5.o o Theo partieso ledo theiro evidenceo ino supporto ofo theiro respectiveo claims.o

6.o o Theo Controllingo Authority,o video ordero datedo 03.02.2023o (AnnexureoP-6)oallowedotheoapplicationooforespondentoNo.3,obyoholdingoaso undero:-o o o "IssueoNo.01o&o02:o o o Theseoissuesoareoco-related,ohence,otheosameoshallo beodecidedotogether.oFromotheoperusaloofotheorecordoando evidenceo placeo ono file,o ito iso concludedo thato theo respondent/corporationo haso releasedo theo amounto ofo gratuityoofoRs.10olacsotootheoapplicantoono03-04-2019obuto withoutoanyointerestoonotheodelayedopaymentoofogratuityoaso perotheoprovisionsoofotheoPaymentoofoGratuityoAct,o1972.o Further,otheowitnessoofotheorespondentohasoadmittedothato theyohaveopaidotheoamountoofogratuity.oMoreover,oasopero theonotificationodatedo29-03-2018oissuedobyotheoGovt.oofo IndiaoregardingoceilingocapoofogratuityoamountofromoRs.10o lacso too Rs.20o lacs,o therefore,o aso pero theo presento claimo application,oitoisodecidedothatosinceoasoperotheocalculationo ofo theo lengtho ofo serviceo ando lasto wageso drawno byo theo applicant,ohisototaloamountoofogratuityowasoRs.12,54,978/-o whereasoheohasopaidodisbursedoanoamountoofoRs.10olacsoono 03-04-2019oafterotheoenhancementoofotheoceilingocapobyotheo Govt.oofoIndiaounderotheoPGoAct,o1972owhichoisoapplicableo uponotheorespondent/management.oNow,oitoisodecidedothato theo respondent/managemento iso directedo too deposito theo balanceoamountoofoRs.2,54,978/-oasoaopartoofogratuityoando theointeresto@o9%othereuponofromotheodueodateo01-01-2019o GURPREET KAUR tillotheoactualorealizationoofotheoamount.o o o Ito iso alsoo decidedo thato theo applicanto iso entitledooooooooooooooooo foro interesto @o 6%o upono theo amounto ofo Rs.10o lacso fromooooooooooooooooo 01-01-2019o too 02-04-2019o aso pero theo provisionso ofo theo PaymentoofoGratuityoAct,o1972.o o o Inoviewoofotheoabove,otheorespondent/corporationoiso accordinglyo directedo too deposito theo balanceo amounto ofo gratuityo ofo Rs.2,54,978/-o witho interesto @o 9%o thereupono fromodueodateo01-01-2019otillotheoactualorealizationoofotheo amountoofointeresto@o6%ouponotheoamountoofoRs.10olacso fromo 01-01-2019o too 02-04-2019o ino thiso courto withino ao periodoofo20odaysofromotheodateoofothisoorder,ofailingowhicho theosaidoamountoshallobeorecoveredoalongowithoaofurthero penalointeresto@o12%op.a.ofromotheodateoofothisoorderoupotoo theodateoofoactualopayment."o

7.o o Beingo dissatisfiedo witho theo afore-saido award,o theo petitioner-CorporationofiledoanoappealobeforeotheoAppellateoAuthorityounderotheo1972o Act;ohowever,otheosameowasoalsoodismissedovideoitsoorderodatedo01.08.2023o (AnnexureoP-7)obyoholdingoasoundero:-o o o "12.o Aftero hearingo argumentso advancedo byo learnedocounseloforotheopartiesoandoperusingotheorecordoofo thisocase,oitoisonotodisputedothatotheoclaimantowasoappointedo aso Senioro Assistanto ono 06.03.1978o witho theo Appellanto Corporationo ando heo retiredo ono 30.11.2018o fromo serviceo uponoattainingotheoageoofosuperannuation.oItoisoalsoonoto disputedothatoheowasodrawingoaosalaryoofoRs.53,056/-opero montho ato theo timeo ofo retirement.o Further,o ito iso alsoo noto disputedothatotheoappellantohasoalreadyomadeopaymentoofo gratuityoamountoofoRs.10olacsoono03.04.2019.oTheoclaimanto whileo filingo theo applicationo beforeo Learnedo Controllingo Authorityo haso statedo thato theo gratuityo amounto aftero calculationo goeso too Rs.12,54,978/-o ando thato ao sumo ofo Rs.2,54,978/-o yeto too beo paid.o Theo learnedo Controllingo Authorityo haso orderedo too payo theo remainingo amounto ofo gratuityo i.e.o Rs.2,54,978/-o alongo witho theo interesto aso detailedoinotheoorderodatedo03.02.2023.o o o 13.o Ito iso submittedo ono behalfo ofo theo Appellanto Corporationothatotheonotificationodatedo29.03.2018oissuedo byo theo Govt.o ofo Indiao video whicho theo limito ofo Gratuityo amountohasobeenoincreasedofromoRs.10olacsotoo20olacsoiso notoapplicableouponotheoappellantocorporation.oItoisofurthero submittedothatotheoGovt.oofoPunjab,oDepartmentoofoFinanceo issuedoaoletteroono13.09.2019ovideowhichotheoenhancemento ofo paymento ofo Gratuityo hado alreadyo beeno withdrawn.o Hence,otheolearnedoControllingo Authorityo haso committedo errorowhileograntingogratuityoinoexcessoofoRs.10oLacs.oOno theootherohand,oitoisosubmittedoonobehalfoofoclaimantothatonoo sucho pleao waso takeno byo theo Appellanto beforeo theo Controllingo Authority.o Ito iso furthero submittedo thato theo notificationodatedo 29.03.2018o wasoissuedo byo theoCentralo Govt.o regardingo enhancemento ofo limito ofo Gratuityo fromo Rs.10oLacsotoo20oLacsoandosameoisoapplicableofromotheo dateoofonotificationoi.e.o29.03.2018oandonooseparateoordero waso requiredo foro itso applicability/implementation.o Aftero hearingotheocontentionoonotheoaforesaidopointoonobehalfoofo botho theo learnedo counsels,o Io amo ofo theo viewo thato theo contentionosooraisedobyotheoappellantoisonototenableoinotheo eyeso ofo law.o Firstlyo noo sucho pleao waso takeno byo theo appellantobeforeolearnedoControllingoAuthority.oSecondly,o theonotificationodatedo29.03.2018oisoissuedobyotheoCentralo Govt.o ando ito iso applicableo aso sucho withouto itso formalo adoptiono byo anyo state.o Moreover,o theo lettero datedo

13.09.2019o allegedlyo issuedo byo Govt.o ofo Punjab,o DepartmentoofoFinance,ocannotohaveooverridingoeffectoovero theo notificationo datedo 29.03.2018.o Eveno otherwise,o theo lettero datedo13.09.2019oallegedlyoissuedobyo theo Govt.o ofo Punjab,oDepartmentoofoFinance,owasoissuedoafterotheodateo ofo retiremento ofo theo Respondento No.2.o Hence,o byo anyo stretchoofoimagination,otheosaidoletterohasonooapplicabilityo whileodeterminingotheoamountoofoGratuityotoobeopaidotootheo claimant.o o o 14.o Theoappellantohasoalsootakenoaopleaothatotheo claimantodoesonotofallowithinotheodefinitionoofoemployeeoaso perotheoGratuityoActoandothatopaymentoofoGratuityoActohaso nooapplicabilityo ono theo Appellanto Corporation.o Theo saido pleao iso alsoodevoidoofo merito aso theo witnessoofoappellanto corporationo beforeo learnedo Controllingo Authorityo categoricallyo admittedo ino hiso crosso examinationo thato employeeoofotheoappellantocorporationoareogovernedobyotheo ruleso ofo Paymento ofo Gratuityo Act,o 1972.o Moreover,o theo amountoofoGratuityoofoRs.10oLacsohasoalreadyobeenopaidotoo theo claimanto aso pero theo Paymento ofo Gratuityo Ruleso applicableotootheoappellantocorporation.oHence,onowotheo appellantocannototakeoaostandocontraryotootheorecord.o o o 15.o Pleaohasoalsoobeenotakenoonobehalfoofotheoo AppellantoCorporationothatolearnedoControllingoAuthorityo hado noo jurisdictiono too entertaino theo applicationo filedo ono behalfoofoclaimant.oPerusaloofotheofileotranspiresothatotheo saido pleao waso alsoo raisedo beforeo learnedo Controllingo Authorityo upono whicho additionalo issueo waso alsoo framedo ando video ordero datedo 13.07.2022,o theo saido issueo waso decidedo ino favouro ofo theo claimanto ando ito waso heldo thato learnedoControllingoAuthorityohasojurisdictionotooentertaino theo saido application.o Further,o perusalo ofo theo fileo alsoo transpiresothatowhenotheoclaimantoretiredofromohisoserviceo i.e.o ono 30.11.2018,o theo Appellanto Corporationo hado theiro headoofficeoinoChandigarhoitself.oThus,otheocauseoofoactiono regardingo non-paymento ofo gratuityo aroseo withino theo jurisdictiono ofo Chandigarh.o Thus,o mereo facto thato subsequentlyo theo heado officeo haso beeno changedo fromo Chandigarho too Mohalio doeso noto divesto theo Controllingo AuthorityoatoChandigarhotooentertainotheoapplicationofiledo byotheoclaimant.oThus,otheosaidocontentionoisoalsoodevoidoofo o o 16.o Ito iso alsoo submittedo ono behalfo ofo theo appellanto thato learnedo Controllingo Authorityo haso alsoo grantedointeresto@o12%operoannumoonotheoawardoamounto whichoisoalsoonotoasoperotheoprovisionsoofotheoAct.oWhereas,o itoisosubmittedoonobehalfoofotheoclaimantothatotheointeresto hasobeenoawardedoasoperotheoprovisionsoofotheoAct.oPerusalo ofotheofileoshowsothatolearnedo Controllingo Authorityohaso awardedo interesto ono theo amounto ofo Rs.2,54,978/-o @o 9%o fromo 01.01.2019o tillo itso realization.o Theo learnedo Controllingo Authorityo haso alsoo orderedo foro paymento ofo interesto @o 6%o upono theo amounto ofo Rs.10o lacso fromo

01.01.2019otoo02.04.2019oforoaoperiodoofo30odaysofromotheo dateoofoorderofailingowhichoaopenalointeresto@o12%opero annumo haso beeno orderedo tillo theo actualo payment.o Theo awardingoofopenalointeresto@o12%operoannumoonotheodelayo inopaymentocannotobeosaidotoobeobeyondotheoprovisionsoofo theoAct.oHence,otheoamountoofointerestohasobeenoorderedoaso pero theo provisionso ofo theo Acto ando learnedo Controllingo Authorityo waso wello withino hiso discretiono too granto penalo interesto@o12%operoannumoinocaseoofonon-paymentowithino theostipulatedotime.oHence,oitocannotobeosaidothatolearnedo ControllingoAuthorityohasonotocompliedowithotheoprovisionso ofotheoAct.o o o 17.o Inoviewoofotheoaboveodiscussion,othisoCourtoiso ofo theo consideredo opiniono thato ordero passedo byo learnedo ControllingoAuthorityoisolegaloandojustifiedoandothereoisonoo illegalityooroirregularityoinotheosame.o o o 18.o Inoviewoofotheoabove,ofindingonoomerits,otheo presentoappealofiledobyotheoAppellantoCorporationostandso dismissed.o However,o noo ordero aso too costs.o Partieso beo informedo accordingly.o Presento caseo fileo beo consignedo too recordoafterodueocompliance."o

8.o o Ino theo afore-mentionedo circumstances,o theo petitioner-CorporationohasofiledotheoinstantowritopetitionobeforeothisoCourt.o

9.o o Learnedo counselo foro theo petitionero submitso thato theo learnedo authoritieso belowo haveo erredo ino lawo ando factso ino passingo theo impugnedo orders.o Ito iso submittedo thato theo learnedo authoritieso belowo haveo wronglyo appliedotheonotificationodatedo29.03.2018ouponotheopetitioner-Corporationoaso theosameowasonotoapplicableoasotheoPunjaboGovernmentohasoalreadyoissuedoao lettero withdrawingo theo enhancemento ino paymento ofo gratuity.o Ito iso furthero submittedothatotheoauthoritiesobelowohaveowronglyoassumedojurisdictionoaso regardso theo claimo ofo gratuityo byo respondento No.3o iso concernedo aso theo petitioner-Corporationo hado shiftedo itso officeo ino Mohali;o therefore,o theo ControllingoAuthorityoatoChandigarhohadonoojurisdictionoinotheomatter.oItoiso alsoo submittedo byo learnedo counselo foro theo petitioner-Corporationo thato respondentoNo.3ohadonotoapproachedotheoauthoritiesounderotheo1972oActowitho cleano handso aso heo hado suppressedo theo materialo facto thato heo hado alreadyo receivedoanoamountoofoRs.10,00,000/-oonoaccountoofogratuityoandonothingo wasodueofromotheopetitioner-Corporation.o

10.o o Withotheoafore-saidosubmissions,oitoisoprayedothatotheoimpugnedo ordersobeosetoaside/quashed.o

11.o o Iohaveoheardolearnedocounseloforotheopetitioneroandoperusedotheo paper-bookowithohisoableoassistance.o

12.o o Ino Allahabado Banko v.o Allo Indiao Allahabado Banko Retiredo Emps.oAssn.,o2010(1)oSCTo531,oHon'bleoSupremeoCourtowhileoconsideringo theoprovisionsoofotheoPaymentoofoGratuityoAct,o1972;ohasoheldoasounder:-o

(a)k Thereoisonooescapeofromopaymentoofogratuityounderotheo provisionsoofotheoActounlessotheoestablishmentoisograntedo exemptionofromotheooperationoofotheoprovisionsoofotheoActo byotheoappropriateoGovernment.o

(b)k Gratuityopayableotooanoemployeeoonotheoterminationoofo GURPREET KAUR hiso employmento aftero renderingo continuouso serviceo foro

not less than 5 years and on superannuation or retirement or resignation etc. being a statutory right cannot be taken away except in accordance with the provisions of the Act whereunder an exemption from such payment may be granted only by the appropriate Government under Section 5 of the Act which itself is a conditional power. No exemption could be granted by any Government unless it is established that the employees are in receipt of gratuity or pension benefits which are more favourable than the benefits conferred under the Act.

(c) In view of the overriding provisions contained in Section 14 of the Payment of Gratuity Act, the provision for gratuity under the Pension Rules will have no effect. Possibly for this reason, Section 5 of the Payment of Gratuity Act has conferred authority on the appropriate Government to exempt any establishment from the operation of the provisions of the Act, if in its opinion the employees of such establishment are in receipt of gratuity or pensionary benefits not less favourable than the benefits conferred under this Act. [Municipal Corporation Delhi v. Dharam Prakash Sharma & Ors., 1999(2) SCT 297]

(d) An establishment is under the statutory obligation to pay gratuity as provided for under Section 4 of the Act which is required to be read along with Section 14 of the Act which says that the provisions of the Act shall have effect notwithstanding anything inconsistent therein contained in any enactment or in any instrument or contract having effect by virtue of any enactment other than this Act.

(e) The provisions of the Act prevail over all other enactment or instrument or contract so far as the payment of gratuity is concerned. The right to receive gratuity under the provisions of the Act cannot be defeated by any

(f) In Hindustan Lever and Anr. v. State of Maharashtra & Anr., (2004)9 SCC 438 relying upon the decision in Purshottam H. Judye v. V.B. Poddar, (1966)2 SCR 353, it was held that the word 'instrument' would include award made by the Industrial Tribunal.

(g) Section 2(d) of the Act defines Controlling Authority as an authority appointed by the appropriate Government under Section 3 of the Act. Under Section 3 the Controlling Authority is made responsible for the administration of the Act and it further provides for appointment of different authorities for different areas. Section 7 deals with for determination of the amount of gratuity. Every person who is eligible for payment of gratuity under the Act is required to send a written application to the employer in the prescribed form for payment of such gratuity. Sub-section (2) of Section 7 provides once the gratuity becomes payable, the employer shall, whether an application has been made or not, determine the amount of gratuity and give notice in writing to the person to whom the gratuity is payable and also to the Controlling Authority specifying the amount of gratuity so determined and arrange to pay the amount of gratuity to the person to whom the gratuity is payable. The Scheme envisaged under Section 7 of the Act, is that in case of any dispute to the amount of gratuity payable to an employee under the Act or as to the admissibility of any claim of, or in relation to, an employee payable to gratuity etc. the employer is required to deposit with the Controlling Authority the admitted amount payable as gratuity. In case of any dispute parties may make an application to the Controlling Authority for deciding the dispute who after due inquiry and after giving the parties to the dispute, a reasonable opportunity of being heard, determine the matter or matters in dispute and if, as result of such

inquiry any amount is found to be payable to the employee, the Controlling Authority shall direct the employer to pay such amount to the employee. Sub-section (7) of Section 7, provides for an appeal against the order of the Controlling Authority. The Act, nowhere confers any jurisdiction upon the Controlling Authority to deal with any issue under sub-section (5) of Section 4 as to whether the terms of gratuity payable under any Award or agreement or contract is more beneficial to employees than the one provided for payment of gratuity under the Act. This Court's order could not have conferred any such jurisdiction upon the Controlling Authority to decide any matter under sub-section (5) of Section 4, since the Parliament in its wisdom had chosen to confer such jurisdiction only upon the appropriate Government and that too for the purposes of considering to grant exemption from the operation of the provisions of the Act.

13.

Coming to the case in hand, there is no dispute about the fact that the respondent No. 3 (Jaswant Singh Rawat) has remained in continuous employment of petitioner-Corporation w.e.f. 06.03.1978 upto 30.11.2018, when he retired upon attaining the age of superannuation. The applicability of 1972 Act upon the petitioner-corporation also stands admitted by the petitioner's witnesses appearing before the controlling authority.

14.

Sub-section (1) of Section 4 of 1972 Act provides that the gratuity shall be payable to an employee on termination of his employment after he has rendered continuous service for not less than five years, on his superannuation or retirement or resignation or death or disablement due to accident or disease.

Sub-section (2) of Section 4 provides that for every completed year of service or part thereof in excess of six months the employer shall pay

gratuity to an employee at the rate of 15 (fifteen) days wages based on the rate of wages last drawn by the concerned employee.

Sub-section (3) of Section 4 which is of importance reads as under: "(3) The amount of gratuity payable to an employee shall not exceed such amount as may be notified by the Central Government from time to time."

As per above extracted provision, the amount of gratuity payable to an employee would not exceed such amount as may be notified by the Central Government from time to time. Thus, the ceiling limit for payment of gratuity is provided in sub-section (3) of Section 4.

15.

In exercise of such delegated powers of legislation, the Central Government has issued a notification dated 29.03.2018 which reads as under: "S.O. 1420 (E).-In exercise of the powers conferred by sub-section (3) of section 4 of the Payment of Gratuity Act, 1972 (39 of 1972), the Central Government hereby specifies that the amount of gratuity payable to an employee under the said Act shall not exceed twenty lakh rupees."

It is thus evident that this revised ceiling would apply to all establishments irrespective of whether they are controlled or governed by the State or the Central Government.

16.

In the light of the legal position indicated in foregoing paras that the provisions of 1972 Act prevail over all other enactment or instrument or contract so far as the payment of gratuity is concerned and also in terms of express provisions contained in sub-section (3) of Section 4 of 1972 Act, there is no force in the contention of the petitioner that the Notification dated 29.03.2018 issued by the Central Government has no

applicability to the petitioner-corporation or that the Punjab Government has issued a letter whereby enhancement of payment of gratuity has been withdrawn.

17.

As regards the contention of the petitioner that the Authorities under the 1972 Act have wrongly assumed jurisdiction as the Petitioner-Corporation has its office at Mohali, it is observed that the said contention was duly considered and rejected by the Appellate Authority below by holding that at the time of retirement of petitioner from service on

30.11.2018, the Petitioner-Corporation had its office at Chandigarh itself, thus the cause of action regarding non-payment of gratuity arose within the jurisdiction of Chandigarh and merely because subsequently the Petitioner-Corporation has shifted its office to Mohali, would not divest the Controlling Authority at Chandigarh to entertain the application filed by respondent No. 3 (Jaswant Singh Rawat). I am in full agreement with the aforesaid finding returned by the Appellate Authority below.

In terms of Section 7(2) of 1972 Act, as soon as gratuity becomes payable, the employer, whether any application has been made or not, is obliged to determine the amount of gratuity and give notice in writing to the person to whom the gratuity is payable and also to the controlling authority specifying the amount of gratuity. Under Section 7(3) of 1972 Act, the employer shall arrange to pay the amount of gratuity within 30 days from the date it becomes payable.

It is not disputed that the day when the petitioner retired from service, the office of the Petitioner-Corporation was at Chandigarh itself, thus the cause of action regarding non-payment of gratuity arose within the jurisdiction of Chandigarh. Therefore, no fault can be found with the

impugned orders on the ground of jurisdiction, as contended on behalf of Petitioner-Corporation.

18.

No other argument has been raised.

19.

Considering the totality of circumstances, there is no scope for any interference in the impugned order dated 03.02.2023 (Annexure P-6) and order dated 01.08.2023 (Annexure P-7), resultantly, the instant petition fails and the same is accordingly dismissed.

20.

All pending applications (if any) shall stand disposed of.

December 12, 2023

(HARSH BUNGER) gurpreet

JUDGE