Calcutta High Court (Appellete Side)
Shiv Murat Bari vs State Of West Bengal & Ors on 24 April, 2013
Author: Jayanta Kumar Biswas
Bench: Jayanta Kumar Biswas
In The High Court At Calcutta
Constitutional Writ Jurisdiction
Appellate Side
Present : The Hon'ble Mr Justice Jayanta Kumar Biswas
W.P.No.11439(W) of 2013
Shiv Murat Bari
-vs-
State of West Bengal & Ors.
Mr. Manas Kumar Ghosh
Ms. Susmita Dey (Basu) ...for the petitioner
Ms. Sukla Das Chandra ...for the State
Mr. Pantu Deb Roy
Mr. S. Guha Biswas ...for the Corporation
Heard on : April 24, 2013
Judgment on : April 24, 2013
The Court : The allegation in this WP is that for undisclosed reasons the
respondents have withheld payment of terminal benefits.
Mr Deb Roy appearing for the employer has submitted that certain benefits could not be paid for acute financial crisis; and that for gratuity a remedy under s.8 of the Payment of Gratuity Act, 1972 was available. He has relied on an unreported Division Bench decision dated March 27, 2012 in an MAT No.112 of 2012.
In my opinion, financial crisis, if any, of the employer is no ground to say that it is entitled to withhold payment of terminal benefits of its employees. In this case it incurred the obligation to pay the benefits in question on August 1, 2011. By withholding the payment it caused loss and harassment. This is a litigation it has generated without any valid reason.
The plea that for gratuity a remedy under s.8 of the Payment of Gratuity Act, 1972 was available is without any merit. Availability of a statutory remedy such as the one under s.8 of the Payment of Gratuity Act, 1972 is not a bar to seek the art.226 remedy, if the entitlement to gratuity and liability to pay gratuity both are undisputed. And that is the case here.
In my opinion, the employer should be ordered to pay all the payable terminal benefits. The relied on Division Bench decision does not entitle it to withhold payment of the benefits or pay them in the manner it wishes. It is liable to pay interest. I think interest, if ordered at the rate of 7% p.a., will be fair and reasonable.
For these reasons, I dispose of the WP directing the employer to pay all the payable terminal benefits with 7% p.a. interest from August 1, 2011, within four weeks from the date this order is served. No costs. Certified xerox.
(Jayanta Kumar Biswas, J) sb