Supreme Court Allows Appeal Regarding Attachment of Gratuity Payable to Dock Worker — Gratuity is Immune from Attachment. Citing legislative intent, the Court held that gratuity under the Payment of Gratuity Act, 1972 is not attachable.

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Case Note & Summary

The dispute arose from a suit filed by a respondent seeking recovery of money against the widow and son of Md. Safiur Rehman, a dock worker whose gratuity was under consideration for attachment. The Court of Small Causes at Calcutta initially ordered the Calcutta Dock Labour Board to withhold payment of the gratuity, which the Board contested, asserting that gratuity was not attachable. The Chief Judge of the Small Causes Court overruled the Board's objection, leading to an appeal in the Calcutta High Court. The High Court upheld the Chief Judge's decision, stating that the gratuity was not protected under the Payment of Gratuity Act due to the specific provisions of the Code of Civil Procedure applicable to the Presidency Small Causes Court. The Supreme Court, upon appeal, examined the legislative intent of the Payment of Gratuity Act, 1972, particularly sections 13 and 14, which provide immunity from attachment. The Court noted that the gratuity payable to Md. Safiur Rehman was indeed covered under the Act, and no notification exempting it from the Act had been issued. The Court concluded that the gratuity was immune from attachment, thereby allowing the appeal and reversing the lower court's decision. The parties were directed to bear their own costs.

Headnote

A) Labour Law - Gratuity Attachment - Immunity from Attachment - Payment of Gratuity Act, 1972, Sections 13, 14 - The gratuity payable under the Act is immune from attachment in execution of any decree or order of any court. The court held that the gratuity payable to Md. Safiur Rehman was covered under the Act and thus entitled to immunity from attachment as per section 13, overriding any contrary provisions (Paras 830-831).

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Issue of Consideration

Whether gratuity payable to a workman employed under the Calcutta Dock Labour Board is attachable for satisfaction of a decree of the Court.

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Final Decision

The Supreme Court allowed the appeal, holding that the gratuity payable to Md. Safiur Rehman was immune from attachment under section 13 of the Payment of Gratuity Act, 1972. The Court directed that the parties bear their own costs.

Law Points

  • Gratuity attachment
  • Payment of Gratuity Act
  • 1972
  • Code of Civil Procedure
  • 1908
  • statutory exemptions
  • legislative intent
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Case Details

1985 LawText (SC) (02) 28

Civil Appeal No. 345 of 1985

1985-02-11

Ranganath Misra

1985 AIR 996, 1985 SCR (2) 826, 1985 SCC (2) 1, 1985 SCALE (1) 213

D. N. Mukherjee, Mahabir Singh

Calcutta Dock Labour Board and Anr.

Smt. Sandhya Mitra and Ors.

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Nature of Litigation

Dispute over attachment of gratuity payable to a deceased dock worker.

Remedy Sought

Respondent sought attachment of gratuity for recovery of money.

Filing Reason

Suit filed for recovery against the widow and son of Md. Safiur Rehman.

Previous Decisions

The Chief Judge of the Small Causes Court and the Calcutta High Court ruled against the Board's objection to attachment.

Issues

Whether gratuity is attachable under the Payment of Gratuity Act, 1972 Interpretation of statutory exemptions under the Code of Civil Procedure

Submissions/Arguments

Appellants argued gratuity is not attachable under the Act. Respondents contended that the gratuity was not protected under the Act.

Ratio Decidendi

The gratuity payable under the Payment of Gratuity Act, 1972 is immune from attachment in execution of any decree or order of any court, as per section 13 of the Act.

Judgment Excerpts

The gratuity which was payable to him squarely came within the purview of the Act and, therefore, became entitled to immunity under section 18 thereof. No gratuity payable under this Act shall be liable to attachment in execution of any decree or order of any civil, revenue or criminal court.

Procedural History

The case originated in the Court of Small Causes at Calcutta, where an order was made to withhold gratuity payment. The Chief Judge overruled the Board's objection, leading to an appeal in the Calcutta High Court, which upheld the lower court's decision. The Supreme Court granted special leave to appeal and ultimately allowed the appeal.

Acts & Sections

  • Payment of Gratuity Act, 1972: 1(3), 2(n), 4, 5, 13, 14
  • Code of Civil Procedure, 1908: 6(g), 8, 60
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