JUDGEMENT
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(1.) The writ petition has been filed against purported proceedings initiated
by the 'Controlling Authority' under the Payment of Gratuity Act, 1972, without
having any jurisdiction to initiate the same and also against the purported
recovery proceeding initiated by the Certificate Officer against the petitioners
for realisation of the amount, so calculated and determined by the said
'Controlling Authority'. It has been stated in the writ petition that the petitioner
No. 1 is a public limited company incorporated under the Companies Act,
1956. As the said Company sustained continuous loss and financial crisis
since 1990; so it was referred to BIFR. The production of the Company
came to a halt in May, 2000. As such, salary and wages of the employees
could be paid only up to June, 2000. So, the management decided to make
some ad-hoc payments to the employees in lieu of wages and salaries, as a
measure to mitigate-the hardship. The Company was registered as a sick
Company with the BIFR. The petitioner Nos. 2 and 3 are the officials of the
petitioner No. 1/Company. But they are not the persons in control over the
ultimate affairs of the said company which has several branches all over
India, i.e. in Delhi, Kanpur, Ludhiana, Mumbai, Chennai, Coimbatore, Kochi
and Bangalore. The respondent No. 4 was officiating as an Assistant
Manager, Accounts for a considerable time in the petitioner/Company. On
25.9.2000 he submitted resignation letter stating therein that he would not
attend office from 26.9.2000. Consequently, he stopped attending the office
from that date without handing over the charge to anybody. The respondent
No. 4 did not serve the notice, which is required for submitting a resignation
letter. Said resignation was never accepted by the management of the
petitioner/Company and no formal release order was issued in favour of the
respondent No. 4. Subsequently, on 17.10.2000, the respondent No. 4 filed
an application before the 'Controlling Authority' under the Payment of Gratuity
Act, West Bengal i.e. respondent No. 2. Said application was forwarded to
the petitioner/Company by the respondent No. 2. Ultimately, the respondent
No. 2 passed an ex parte order in respect of the application for payment of
gratuity, as filed by the respondent No. 4, wherein it. was held that the
respondent No. 4 was entitled to a sum of Rs. 23,076/- towards gratuity
along with interest @ 10% per annum from the date'when the said gratuity
amount became due. Said order was forwarded to the petitioner/Company
by the respondent No. 2. Subsequently, respondent No. 3 took steps for
recovery of the said amount of gratuity, as purportedly determined by the
respondent No. 2 and issued a certificate of public demand under the
provisions of Sections 4 and 6 of the Bengal Public Demands Recovery
Act, 1913. By a letter dated 5.3.2000, the Advocate of the petitioner No. 1
informed the Certificate Officer that since the Company was declared sick,
so no execution proceeding could be initiated against the petitioner/Company
as per provisions of Section 22(1) of the Sick Industrial Companies (Special
Provisions) Act, 1985. A scheme was prepared by the BIFR under Section
17 of the Act in respect of the petitioner/Company for implementation.
Although, those notices were issued in the name of the petitioner No. 1/
Company, suddenly on 16.7.2002 the Certificate Officer issued notices in
the names of petitioner Nos. 2 and 3. According to the petitioner Nos. 2 and
3, no notice was ever issued in their names for the purpose of determining
the amount of gratuity, allegedly payable to the respondent No. 4. As the
petitioner Nos. 2 and 3 are not the persons in control over the affairs of the
petitioner/Company, so the notices that were issued in the names of the
petitioner Nos. 2 and 3 are liable to be set aside. According to the petitioners,
as per provisions of Payment of Gratuity Act, 1972, an 'appropriate
Government' in relation of an establishment having branches in more than
one State, is the Central Government. As the petitioner/Company has its
branches in several States of India, so in respect of the said Company, the
'appropriate Government' in respect of the establishment in question, is the
Central Government and as such the respondent No. 2 being an authority
under the control of the West Bengal Government cannot have any
jurisdiction to entertain the application filed by the respondent No. 4 claiming
gratuity and as such the entire proceedings before the respondent No. 2
and the consequent certificate proceedings which were started therefrom,
suffers from inherent and patent lack of jurisdiction. As the entire
proceedings, which were started by the respondent Nos. 2 and 3 are
thoroughly illegal and without jurisdiction, so the petitioners have filed this
writ petition praying for setting aside the notices, which were issued in the
names of the petitioners by the respondent Nos. 2 and 3.
(2.) In addition to the writ petition, the petitioners have filed one
supplementary affidavit wherein it has been clearly mentioned about the
names and addresses of the branches of the petitioner/Company which are
situated outside West Bengal. In the said supplementary affidavit copies of
the letters, which were written from time to time on behalf of the petitioner/
Company to the respondent Nos. 2 and 3 have also been annexed.
(3.) The respondent No. 4 Dilip Kumar Dey, the concerned workman,
contested the matter by filing an affidavit in opposition wherein he has denied
the allegations of the petitioners on material points. According to him, as
the petitioners did not pay the amount of gratuity which was due to him,
consequent upon his submission of resignation to the petitioner/Company,
so the respondent No. 2 was perfectly justified in determining the said amount
and directing the respondent No. 3 to realise the same as per provisions of
Public Demands Recovery Act. The respondent No. 4 further claimed that
the respondent No. 3 rightly issued the notice to the petitioners for realisation
of the said amount. Against the supplementary affidavit of the petitioners,
the respondent No. 4 also filed an affidavit-in-opposition whereby, as it
appears that an attempt has been made to deny the claims of the petitioners.;