Case Note & Summary
The present writ petition was filed under Article 227 of the Constitution of India challenging the order dated 03.06.2021 passed by the Principal Civil Judge and JMFC, Bhadravathi in Execution Case No.70/2019. The dispute arose from a decree obtained by respondent No.1 against the deceased Babu in O.S.No.109/2016 for recovery of money. Following the decree, respondent No.1 filed execution proceedings against the legal representatives of the deceased, including the petitioner (widow) and respondent Nos.2 and 3 (sons). The Executing Court, by the impugned order, attached the gratuity amount payable on the death of Babu and directed release of Rs.3,00,000/- to the decree holder, overruling the objections of the judgment debtors. The petitioner contended that the attachment was impermissible under Section 13 of the Payment of Gratuity Act, 1972, which grants total immunity to gratuity from attachment in execution of any decree. The petitioner relied on the decision of this Court in G. Narayana Rao v. V.R. Nagmani, ILR 1996 KAR 3246. The respondent No.1 argued that after the death of the employee, the gratuity amount becomes part of the family estate and is therefore attachable, citing decisions of the Delhi High Court and Madras High Court. The Court examined Sections 4(1) and 13 of the Payment of Gratuity Act, 1972, and the binding precedents. It noted that Section 4(1) provides for payment of gratuity on death to nominees or heirs, and Section 13 explicitly prohibits attachment of any gratuity payable under the Act. The Court relied on the decision of the Andhra Pradesh High Court in D. Vimala v. Canara Bank, 1997 (6) ALT 62, which held that gratuity does not lose its exempt character even after the employee's death when it becomes payable to legal representatives. The Court also followed its own decision in G. Narayana Rao, which reinforced the overriding effect of Section 13. Consequently, the Court allowed the writ petition, set aside the order of the Executing Court, and held that the gratuity amount of the deceased employee cannot be attached in execution proceedings.
Headnote
A) Execution - Attachment of Gratuity - Section 13, Payment of Gratuity Act, 1972 - Exemption from Attachment - The Executing Court ordered attachment of gratuity amount payable on death of the employee, but Section 13 of the Payment of Gratuity Act, 1972 provides total immunity from attachment in execution of any decree - Held that gratuity amount retains its exempt character even after employee's death when it becomes payable to legal representatives, and such attachment is impermissible (Paras 7-11)
Issue of Consideration
Whether the gratuity amount of the deceased employee can be attached in the execution proceedings?
Final Decision
Writ petition allowed. The impugned order dated 03.06.2021 passed in Ex.Case No.70/2019 by the Principal Civil Judge and JMFC, Bhadravathi is set aside. The gratuity amount of the deceased employee cannot be attached in execution proceedings in view of the protection under Section 13 of the Payment of Gratuity Act, 1972.
Law Points
- Gratuity amount payable under Payment of Gratuity Act
- 1972 is exempt from attachment in execution of any decree
- Section 13 provides total immunity to gratuity from attachment
- gratuity retains exempt character even after employee's death when payable to legal representatives
- Section 4(1) of Payment of Gratuity Act
- 1972 provides for payment of gratuity on termination
- death
- etc.
