Case Note & Summary
The petitioner, Adarsh Films and TV Institute, challenged an order dated 26.12.2017 passed by the Assistant Labour Commissioner cum Authority under the Payment of Gratuity Act, 1972, and the subsequent dismissal of its appeal by the appellate authority on the ground of limitation. The respondent, B.N. Kodandaramaiah, had filed a claim for gratuity which was allowed by the controlling authority. The petitioner preferred an appeal before the appellate authority, which was filed on the 178th day from the date of receipt of the order. The appellate authority dismissed the appeal holding that under Section 7(7) of the Act, the appeal must be filed within 60 days, and the authority could condone delay only for a further period of 60 days, i.e., up to 120 days total. Since the appeal was filed after 178 days, it was beyond the condonable period. The petitioner then filed a writ petition under Articles 226 and 227 of the Constitution of India. The High Court examined the proviso to Section 7(7) and found that the appellate authority had misconstrued its powers. The proviso clearly states that the appellate authority may condone delay for a further period of 60 days if satisfied that the appellant was prevented by sufficient cause. The court held that the appellate authority's view that it had no power to condone delay beyond 60 days was erroneous. The court set aside the appellate authority's order and remitted the matter back for fresh consideration on merits, directing the authority to consider the application for condonation of delay on its own merits and then decide the appeal accordingly.
Headnote
A) Gratuity - Appeal - Limitation - Condonation of Delay - Section 7(7) Payment of Gratuity Act, 1972 - The appellate authority dismissed the appeal as barred by limitation, holding it had no power to condone delay beyond 60 days. The High Court held that the proviso to Section 7(7) empowers the appellate authority to condone delay for a further period of 60 days if sufficient cause is shown, making the total permissible delay 120 days. The order dismissing the appeal solely on the ground of delay was set aside and the matter remitted for fresh consideration on merits. (Paras 2-5)
Issue of Consideration
Whether the appellate authority was right in dismissing the appeal on the ground of being belated by holding that the appellate authority is not vested with the power to condone the delay beyond 60 days as provided under the proviso to sub-section (7) of Section 7 of the Payment of Gratuity Act, 1972.
Final Decision
The writ petition is allowed. The order of the appellate authority dated 26.12.2017 is set aside. The matter is remitted back to the appellate authority to consider the application for condonation of delay on its own merits and thereafter decide the appeal on merits.
Law Points
- Appellate authority has power to condone delay beyond 60 days under proviso to Section 7(7) of Payment of Gratuity Act
- 1972
- Limitation for appeal is 60 days extendable by another 60 days on sufficient cause
- Dismissal of appeal solely on ground of delay beyond 60 days without considering merits is erroneous
