Safiya Malik

The Calcutta High Court has dismissed a writ petition challenging an order passed by the Deputy Chief Labour Commissioner (Central), Kolkata, which had allowed the appeal of a retired employee for the payment of gratuity. The court upheld the decision to condone the delay in filing the gratuity claim and directed the employer to pay all legitimate dues along with statutory interest within 30 days.

The present writ petition was filed by M/s. Orion Security Solutions Pvt. Ltd. against an order dated October 15, 2024, passed by the Deputy Chief Labour Commissioner (Central), Kolkata, who was acting as the Appellate Authority under the Payment of Gratuity Act, 1972.

The matter arose from an appeal filed under Section 7(7) of the Payment of Gratuity Act by the respondent, Sarjit Kumar Ganguly, challenging an earlier order of the Assistant Labour Commissioner (Central)-I, Kolkata. The Assistant Labour Commissioner had dismissed his claim for gratuity on the ground of delay in making an application before the Controlling Authority.

According to the records, the respondent was appointed in the company on April 19, 2011, and resigned from service on August 21, 2021. The respondent filed Form-I with the company on May 4, 2022, and Form-N with the Controlling Authority on June 17, 2022. After multiple hearings, the Controlling Authority dismissed the claim due to the delay in submission.

The respondent then appealed before the Deputy Chief Labour Commissioner, who allowed the condonation of delay and referred the matter back to the Controlling Authority for a proper hearing and settlement of the claim. The appellate order stated: "The payment of gratuity is a social welfare legislation, but at the end of the day, not many people can understand the procedure and nuances of the same, irrespective of the fact that the claimant may be a well-read person. The option of condonation of delay has been provided so that no deserving workman is deprived of their statutory dues, which has happened in this matter."

The employer, M/s. Orion Security Solutions Pvt. Ltd., challenged this decision before the High Court, arguing that the delay should not have been condoned.

The High Court examined the order under challenge and examined the materials on record. The court referred to various judgments of the Supreme Court, including Esha Bhattacharjee v. Managing Committee of Raghunathpur Nafar Academy & Ors. (2013) 12 SCC 649, Pathapati Subba Reddy (Died) by L.Rs. & Ors. v. The Special Deputy Collector (LA) (2024) 4 SCR 241, and Banda Development Authority, Banda v. Moti Lal Agarwal & Ors. (AIR 2011 SC (CIVIL) 1288).

The court found that the appellate order condoning the delay was justified. It noted that the Payment of Gratuity Act is a beneficial legislation aimed at ensuring financial security for employees. The court recorded: "The option of condonation of delay has been provided so that no deserving workman is deprived of their statutory dues. The reasons for dismissing the claim on the ground of delay appear to be superfluous."

The court observed that the company had subsequently agreed in a meeting held on December 16, 2024, to settle the gratuity claim along with statutory interest, provided no adverse or stay order was passed by the High Court. The meeting minutes stated: "Based on discussion with the parties, it is understood that the respondent is willing to pay the gratuity claim amount along with statutory interest to the claimant. The respondent submits that they have filed a writ petition before the Hon’ble High Court of Calcutta against the order of the Appellate Authority dated 15.10.2024 for condonation of delay."

The High Court noted that the employer had already agreed to comply with the gratuity payment subject to the outcome of the writ petition and that there was no substantive ground for interference with the appellate order.

Based on its findings, the Calcutta High Court issued the following directions:

1. The writ petition was dismissed, and the order of the Deputy Chief Labour Commissioner (Central), Kolkata, dated October 15, 2024, was upheld.

2. The petitioner, M/s. Orion Security Solutions Pvt. Ltd., was directed to pay all legitimate dues to the respondent, including gratuity, along with statutory interest at the applicable rate.

3. The payment must be made within 30 days from the date of the order.

4. If the petitioner fails to comply within the stipulated time, the respondent shall be entitled to seek execution proceedings in accordance with the Payment of Gratuity Act, 1972.

5. All connected applications, if any, were disposed of.

6. Any interim orders, if granted, were vacated.

The court directed that an urgent certified copy of the judgment be supplied to the parties expeditiously after completion of necessary formalities.

Case Title: M/s. Orion Security Solutions Pvt. Ltd. v. Union of India & Ors.
Case Number: WPA 30543 of 2024
Bench: Justice Shampa Dutt (Paul)

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