Bombay High Court Allows Petition of Employee in Gratuity Case — Delay Beyond 120 Days Cannot Be Condoned Under Payment of Gratuity Act, 1972. Industrial Court's Order Allowing Condonation of Delay Set Aside as Appeal Was Filed Beyond the Maximum Period of 120 Days Prescribed Under Section 7(7) First Proviso.

High Court: Bombay High Court Bench: AURANGABAD In Favour of Accused
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Case Note & Summary

The petitioner, Changunabai Sambhaji Gaware, an employee, was aggrieved by the judgment and order dated 18.11.2014 passed by the Industrial Court under Section 7(7) of the Payment of Gratuity Act, 1972, allowing Misc. PGA Delay No. 3 of 2013 filed by the respondents (employer). The Controlling Authority had earlier allowed the petitioner's application for gratuity on 25.2.2013. The petitioner supplied a copy of that judgment to the respondents on 13.3.2013, which was received by them on 15.3.2013 as per their inward stamp. The respondents filed an appeal on 15.10.2013 along with an application for condonation of delay. The Industrial Court allowed the delay application, condoning the delay. The petitioner challenged this order. The legal issue was whether the Industrial Court could condone delay beyond the maximum period of 120 days prescribed under the first proviso to Section 7(7) of the Act. The petitioner argued that there is a clear prohibition under Section 7(7) read with the first proviso for entertaining any appeal beyond 120 days from the date of receipt of the judgment. The respondents supported the impugned order. The court analyzed the provisions and held that the first proviso to Section 7(7) does not confer any power to condone delay beyond 120 days. The appeal was filed on 15.10.2013, which is beyond 120 days from 15.3.2013. The Industrial Court failed to consider the evidence of receipt (Exhibit U-9) and the petitioner's say. The court set aside the impugned order and dismissed the delay application, restoring the order of the Controlling Authority.

Headnote

A) Gratuity Law - Appeal - Condonation of Delay - Section 7(7) Payment of Gratuity Act, 1972 - First Proviso - The first proviso to Section 7(7) of the Payment of Gratuity Act, 1972 prescribes a maximum period of 120 days for filing an appeal from the date of receipt of the order of the Controlling Authority. The proviso does not confer any power on the appellate authority to condone delay beyond 120 days. The Industrial Court erred in allowing the delay application and entertaining the appeal filed beyond 120 days. Held that the appeal was barred by limitation and the order condoning delay is liable to be set aside. (Paras 7-10)

B) Gratuity Law - Limitation - Computation of Period - Section 7(7) Payment of Gratuity Act, 1972 - The period of 120 days for filing an appeal under Section 7(7) is to be computed from the date of receipt of the order of the Controlling Authority. In the present case, the respondent received the order on 15.3.2013, and the appeal was filed on 15.10.2013, which is beyond 120 days. The Industrial Court failed to consider the evidence of receipt (Exhibit U-9) and the petitioner's say. Held that the appeal was filed beyond the prescribed period and could not be entertained. (Paras 5-8)

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Issue of Consideration

Whether the Industrial Court could condone delay in filing an appeal under Section 7(7) of the Payment of Gratuity Act, 1972 beyond the maximum period of 120 days prescribed under the first proviso to that section.

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Final Decision

The writ petition is allowed. The impugned judgment and order dated 18.11.2014 passed by the Industrial Court in Misc. PGA Delay No. 3 of 2013 is quashed and set aside. The delay application stands dismissed. The appeal filed by the respondents is dismissed as barred by limitation. The order of the Controlling Authority dated 25.2.2013 is restored. Rule is made absolute accordingly.

Law Points

  • Section 7(7) of Payment of Gratuity Act
  • 1972
  • first proviso imposes absolute bar on appeal beyond 120 days
  • delay beyond 120 days cannot be condoned
  • Industrial Court cannot entertain appeal beyond 120 days
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Case Details

2015 LawText (BOM) (10) 52

Writ Petition No. 1237 of 2015

2015-10-05

Ravindra V. Ghuge

Shri Shelke Avishkar S. for Petitioner, Shri Navandar Manish N. for Respondents

Changunabai Sambhaji Gaware

Kapus Visheshadnya, Kapus Sanshodhan Kendra, Nanded and The Principal, Krishi Tantra Vidyalaya, Nanded

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Nature of Litigation

Writ petition challenging the order of the Industrial Court condoning delay in filing an appeal under Section 7(7) of the Payment of Gratuity Act, 1972.

Remedy Sought

Petitioner sought quashing of the Industrial Court's order dated 18.11.2014 allowing the delay application and dismissing the appeal as barred by limitation.

Filing Reason

The respondents filed an appeal beyond the prescribed 120-day period under Section 7(7) of the Payment of Gratuity Act, 1972, and the Industrial Court erroneously condoned the delay.

Previous Decisions

The Controlling Authority allowed the petitioner's gratuity application on 25.2.2013. The respondents filed an appeal on 15.10.2013 along with a delay application. The Industrial Court allowed the delay application on 18.11.2014.

Issues

Whether the Industrial Court could condone delay in filing an appeal under Section 7(7) of the Payment of Gratuity Act, 1972 beyond the maximum period of 120 days prescribed under the first proviso.

Submissions/Arguments

Petitioner argued that Section 7(7) read with the first proviso prohibits entertaining any appeal beyond 120 days from the date of receipt of the judgment of the Controlling Authority. The appeal was filed on 15.10.2013, which is beyond 120 days from 15.3.2013. The Industrial Court failed to consider the evidence of receipt (Exhibit U-9) and the petitioner's say. Respondents supported the impugned order, arguing that the Industrial Court had discretion to condone delay.

Ratio Decidendi

The first proviso to Section 7(7) of the Payment of Gratuity Act, 1972 prescribes a maximum period of 120 days for filing an appeal from the date of receipt of the order of the Controlling Authority. The proviso does not confer any power on the appellate authority to condone delay beyond 120 days. Therefore, any appeal filed beyond 120 days is barred by limitation and cannot be entertained.

Judgment Excerpts

There is a clear prohibition under Section 7(7) read with the first proviso for entertaining any appeal beyond 120 days from the date of the receipt of the judgment of the Controlling Authority. The first proviso to Section 7(7) of the Act of 1972 does not confer any power on the appellate authority to condone delay beyond 120 days.

Procedural History

The Controlling Authority allowed the petitioner's gratuity application on 25.2.2013. The respondents received the order on 15.3.2013. They filed an appeal on 15.10.2013 along with a delay application (Misc. PGA Delay No. 3 of 2013). The Industrial Court allowed the delay application on 18.11.2014. The petitioner filed the present writ petition challenging that order.

Acts & Sections

  • Payment of Gratuity Act, 1972: Section 7(7)
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