IN THE HIGH COURT OF JUDICATURE, ANDHRA PRADESH AT HYDERABAD (Special Original Jurisdiction) WEDNESDAY, THE SECOND DAY OF JULY TWO THOUSAND AND EIGHT PRESENT THE HON'BLE MR JUSTICE L.NARASIMHA REDDY WRIT PETITION Nos. 4089 and 4101 of 2008 and 14010 and 14382 of 2007 WRIT PETITION NO : 4089 of 2008 Between: The Hindustan Cables Limited, Rep by its Chief General Manager, PO : Hindustan Cables, Moula-ali Hyderabad - 500 051 ..... PETITIONER AND 1 The Regional Labour Commissioner (Central and Appellate Authority under the payment of Gratuity Act 1972), A.T.I. Campus, Vidyanagar, Hyderabad. 2 The Asst. Commissioner of Labour (Central and ControllingAuthorityunder the payment of Gratuity Act 1972), A.T.I. Campus, Vidyanagar, Hyderabad. 3 V. Jaganmohan Rao, S/o. V. Nageswar Rao, Hindustan Cables Limited, R/o. Plot No. 79, Madhava Nagar, Saidabad, Hyderabad. 4 K. Subba Rao, S/o. Bhushaiah, Deputy Manager (Retd.) Hindustan Cables Limited, R/o. H.No. 1- 7-9/1, Chaitanyapuri, Near Dilsukhnagar, Hyderabad - 60. 5 S. Raghavendra Rao, s/o. S. Venkata Rao, Hindustan Cables Limited, R/o. Plot No. 29, H.No. 8-143/1, Malkajgiri, Hyderabad. 6 U. Ramachidambaram Reddy, S/o. U. Pera Reddy, Hindustan Cables Limited, R/o. H.No. 12-05, 4, Maruthinagar, Moosapet, Sanathnagar, Hyderabad - 18.\ 7 U.V.K. Sudarshan, S/o. U. Sanjeeva Raju, R/o. H.No. 42-440, Gayatrinagar, Moula Ali, Hyderabad - 76. 8 P. Prasada Rao, S/o.P. Prakasa Rao, Hindustan Cables Limited, R/o. H.No. 42-440, Gayatri Nagar, Moula Ali, Hyderabad - 40. 9 D. Rajendra Rao, S/o. D,Y. Yadagiri Rao, Hindustan Cables Limited, R/o. Plot No. B-7, New Asha Officer's Colony, R.K. Puram, Secunderabad - 500 050. 10 K.Mallikarjuna Rao, S/o. K. Ramaiah, Hindustan Cables Limited, R/o. H.No. 1-1-419/F8, Swagruha Apartments, Gandhi Nagar, Hyderabad - 080. 11 P. Manikyam, S/o. Satyanarayana, Hindustan Cables Limited, R/o. H.No. 201/3 RT, Near Football Play Ground, Vijayanagar Colony, Hyderabad - 57. .....RESPONDENTS Petition under Article 226 of the constitution of India praying that in the circumstances stated in the Affidavit filed herein the High Court will be pleased to to issue a writ, order or direction more particularly one in the nature of Writ of Mandamus declaring the action of the 1st respondent herein in not entertaining the statutory appeals under Section 7(7) of the payment of Gratuity Act, 1972 against the orders passed by the 2nd respondent on several dates, directing the petitioner company to pay the difference of gratuity amount as referred to in the order to the unofficial respondents herein, on the ground that the petitioner company approached the appellate authority after statutory period of limitation had expired as provided under the Act, as arbitrary, illegal and seeking a consequential direction to the 1st respondent without reference to delay subject to pre-deposit of amount and pass Counsel for the Petitioner:MR.ANDAPALLI SANJEEV KUMAR Counsel for the Respondents: MR.M.SUDHIR KUMAR FOR R18.03.08,VAK-3-11 MRS.H.SEETHA DEVI FOR RMAPP W.P.No.4101 of 2008 Between: The Hindustan Cables Limitred, Rep. by its Chief General Manager, P.O. Hindustan Cables, Moula-Ali, Hyderabad-500 051 ..... PETITIONER AND 1 The Regional Labour Commissioner (Central and Appellate Authority under the Payment of Gratuity Act, 1972) A.T.I. Campus, Vidyanagar, Hyderabad. 2 The Asst. Commissioner (Central and Controlling Authoritya under the payment of Gratuity Act A.T.I. Campus, Vidyanagar, Hyderabad. 3 K. Papayamma W/o.K. Laxman Rao Hindustan Cables Limited, R/o. 8-3-903/4, Nagarjuna Nagar, Ameerpet, Hyderabad. 4 K. Koteswara Rao S./o. K. Ramaseshayya Hindustan Cables Limited, R/ao. Kanthi Shikhara Apartments, Janata-85 Punjagutta, Hyderabad-500 082 5 S. Prabhakara Raju, S/o. Changal Raju, R/o. Plot No. 154, Mamthanagar, Dr. A.S. Rao Nagar, Hyderabad - 500 062. 6 B. Rajya Lakshmi, W/o. B. Sreenivasa Rao, Hindustan Cables Limited, R/o. Flat No. 301, Siddartha Mayuri Apartments, Panjagutta Colony, Hyderabad - 16. 7 N. Madusudhana Reddy, S/o. Narayana Reddy, Hindustan Cables Limited, R/o. 5-11-233, Venkateswara Nagar, Meerpet, Moulali, Hyderabad. 8 B. Visweswara Rao, S/o. B. Venkateswaa Rao, Hindustan Cables Limited, R/o. H.No. 1-7-2/1, Kamalanagar, ECIL Post, Hyderabad - 500 062. 9 E. Venkata Raman Goud, S/o. Edanna, Hindustan Cables Limited, R/o. Plot No. 253, B.N. Reddy Colony, Vanasthalipuram, Hyderabad 500 720. 10 M.P. Radhya, S/o. late M. Pandithiah, Hindustan Cables Limited, R/o. F.No. 418, Lakshmi Apartments, 6-1-1, Padmaraonagar, Secunderabad - 500 025. 11 A.V.K. Veni, D/o. late A. Venkateswalu, Hindustan Cables Limited, R/o. H.No. 6-1-283, Float No. 302, Dharani Surya Sai Apts., Padmaraonagar, Secunderabad - 500 025. 12 O. Muniswamy Reddy, S/o. O.P. Muni Reddy, R/o. 5-11-229, Venkateswara Nagar, Meerpet, Moulali, Hyderabad - 500 040. 13 B. Nirmala Devi, W/o. Krishna Kumar, Hindustan Cables Limited, R/o. H.No. 6-1-281, Gharundaperumal Flat No. 504, Padmaraonagar, Secunderabad - 500 025. 14 N. Krishna Reddy, S/o. Obul Reddy, Hindustan Cables Limited, R/o. H.No. 5-80, Street No.4, Krishna Nagar Colony, Moulali, Hyderabad. 15 R. Srirama Murthy, S/o. Sitaramaiah, Hindustan Cables Limited, R/o. Plot No. 40, Venkateswara Nagar, Union Corbide Road, Moulali, Hyderabad. 16 R. Jyothi, W/o. S.R. Murthy, Hindustan Cables Limited, R/o. Plot No. 40, Venkateswara Nagar, Union Corbide Road, Moulali, Hyderabad. 17 J. Rama Krishna Rao, S/o. Hanumantha Rao, Hindustan Cables Limited, R/o. MIG-7, APIIC Clolony, Opp : to Union Corbide, Moulali, Hyderabad - 500 040. 18 K. Veeraswamy, S/o. K. Bapayya, Hindustan Cable Limited,, RR/o. 1-8-10/3, Suryanagar, Chikkadapalli, Hyderabad - 500 020. 19 K. Sri Rama Sharma, S/o. K.R. Sharma, Hindustan Cables Limited, R/o. H.No. 3-6-494/101, Kondamudi Mansion, Himayatnagar, Hyderabad - 500 029. 20 R. Radha Krishna Murthy, S/o. late R. Rataiah, Hindustan Cables Limited, R/o. H.No. 3-6-494/101, Kondamudi Mansion, Himayatnagar, Hyderabad - 500 029. 21 T. Mohan Rao, S/o. T. Ammi Reddy, Hindustan Cables Limited, R/o. 584, Vaidehinagar, Vanasthalipuram, Hyderabad - 500070. 22 N. Srinivasa Rao, S/o. late N. Brahmayya, Hindustan Cables Limited, R/o. 5-11-222, Venkateswara Nagar, Moulali Housing Boad, Hyderabad. 23 H.B.S. Rao, S/o. Venkateswalu, Hindustan Cables Limited, R/o. Plot No. 302/A, Defence Colony, Hyderabad. .....RESPONDENTS Petition under Article 226 of the constitution of India praying that in the circumstances stated in the Affidavit filed herein the High Court will be pleased to issue a Writ, order or direction more particularly one in the nature of Writ of Mandamus declaring the action of the 1st respondent herein in not entertaining the statutory appeals under Section 7(7) of the Payment of Gratuity Act, 1972 against the orders passed by the 2nd respondent on several dates, directing the petitioner company to pay the difference of gratuity amount as referred to in the order to the unofficial respondent herein, on the ground that the petitioner company approached the appellate authority after statutory period of limitation had expired as provided under the Act as arbitrary illegal, and seeking a consequential direction to the 1st respondent to entertain the appeals against the orders passed by the 2nd respondent without reference to delay subject to pre-deposit of amount . Counsel for the Petitioner:MR.ANDAPALLI SANJEEV KUMAR Counsel for the Respondents: MRS.H.SEETHA DEVI WRIT PETITION NO : 14010 of 2007 Between: 1 K. Papayamma, W/o.K. Lakshmana Rao, Hindusthan Cables Limited, R/o.H.No. 8-3-903/4, Nagarjunanagar, Ameerpet, Hyderabad - 500 073. 2 K. Koteswara Rao, S/o.K. Ramaseshayya, Hindusthan Cables Limited, R/o. Kanthi Shikara Apartments, Janata-85, Panjagutta, Hyderabad - 500 082. 3 S. Prabhakar Raju, S/o. Chengal Raju, Hindusthan Cables Limited, R/o. Plot No. 154, Mamthanagar, Dr. A.S. Rao Nagar, Hyderabad - 500 062,. 4 B. Rajya Lakshmi, W/o. B. Sreenivasa Rao, Hindusthan Cables Limited, R/o. Flat No. 301, Siddartha Mayuri Apartments, Panjagutta Colony, Hyderabad - 16. 5 N. Madhsusudan Reddy, S/o. Narayana Reddy, Hindusthan Cables Limited, H.No. 5-11-233, V. Nagar Colony, Meerpet,Moulali, Hyderabad - 500 040 6 B. Visweswara Rao, S/o. B. Venkateswara Rao, Hindusthan Cables Limited, R/o. H.No. 1-7-2/1, Kamalanagar, ECIL Post, Hyderabad - 500 062. 7 E. Venkata Raman Goud, S/o. Edanna, Hindusthan Cables Limited, R/o. Plot No. 253, B.N. Reddy Colony, Vanasthalipuram,. Hyderabad - 500 070. 8 M.P. Radhya, S/o. Late M. Pandithiah, Hindusthan Cables Limited, R/o. 418, Lakshmi Apartments, 6-1- 1, Padmarao Nagar, Secunderabad - 500 025. 9 A.V.KI. Veni, D/o. Late A. Venkateswarlu, Hindusthan Cables Limited, R/o. H.NO. 6-1-283, Flat No. 302, Dharani Surya in Sai Apart Padmaraonagar, Secunderabad 500 025 10 O. Muniswamy Reddy, S/o. O.P. Muni Reddy, Hindusthan Cables Limited, R/o. H.No. 5-11-229, Venkateswara Nagar, Meerpet, Moulali, Hyderabad 500 040 11 B. Nirmala Devi, W/o. Krishbna Kumr, Hindusthan Cables Limited, R/o. H.No. 6-1-281, Gharundaperumal, Flat No. 504, padmarao nagar., Secunderabad 500 025. 12 N. Krishna Reddy, S/o. Obul Reddy, Hindusthan Cables Limited, R/o. H.No. 5-80, Street No. 4, Krishna Nagar Colony, Moulali, Hyderabad - 500 040 13 R. Srirama Murthy, S/o. Sitaramaiah, Hindusthan Cables Limited, R/o. Plot No. 40, Venkateswaranagar Colony, Union Corbide Road, Moula Ali, Hyderabad 500 040. 14 R. Jyothi, W/o. R. Sri Rama Murthy, Hindusthan Cables Limited, R/o. Plot No. 40, Venkateswaranagar Colony, Union Corbide Road, Moulali, Hyderabad 500 040 15 J. Ramakrishna Rao. S/o. J. Hanumantha Rao, Hindusthan Cables Limited, R/o. MIG-7, APIIC Colony, Opp: Union Corbide, Moula Ali, Hyderabad - 500 040. 16 K. Veera Swamy, \S/o. Babaiah, Hindusthan Cables Limited, R/o.H.No. 1-8-10/3, Suryanagar, Chikkadpally, Hyderabad - 500 020. 17 K. Sri Rama Sharma, S/o. K. R. Sharma, Hindusthan Cables Limited, R/o. H.No. 3-6-494/101, Kondamudi Manstion, Himayathnagar, Hyderabad - 500 029 18 R. Radha Krishna Murthy, S/o. Late R. Rataiah, Hindusthan Cables Limited, R/o. H.No. 3-9-320, Saraswatinagar, Old Checkpost, Chintalkunta, Hyderabad - 500 074. 19 T. Mohan Rao, S/o. T. Ammi Reddy, Hindusthan Cables Limited, R/o. 584, Vaidehinagar, Vanasthalipuram, Hyderabad - 70 20 H. Srinivas Rao, S/o. Late N. Brahmmaiah, Hindusthan Cables Limited, R/o. H.No. 5-11-222, Venkateswara Colony, Moulali, Housing Board. 21 H.B.S. Rao, S/o. Venkateswarlu, Hindusthan Cables Limited, R/o. Plot No. 302/A, Defence Colony, Hyderabad. ..... PETITIONERS AND 1 The Hindustan Cables Limited, Rep. by its Chief General Manager, Hindustan Cables Post, Hyderabad - 500 051. 2 The District Collector, Ranga Reddy District, Hyderabad. 3 The Mandal Revenue Officer, Uppal Mandal, Ranga Reddy District, Uppal, Hyderabad, 4 Assistant Labour Commissioner (Central) & Controlling Authority Under P.G. Act, 1972, A.T.I.. Campus, Vidyanagar, Hyderabad - 500 007. .....RESPONDENTS Petition under Article 226 of the constitution of India praying that in the circumstances stated in the Affidavit filed herein the High Court will be pleased to issue a Writ, order or direction more in the nature of Writof Mandamus declaring the action of the 1st respondent in not paying the amounts due to the petitioner under the lawful and final orders of the Controlling Authority under the Payment of Gratuity Act, 1972 as illegal, arbitrary, violative of Art. 14, 16 and 21 of the Constitution of India and consequentially to direct the 1st respondent to make payment of the amount due to the petitioners under the respect orders of the Controlling Authority under the payment of Gratuity Act, 1972, forthwith or alternatively to direct the respondents 2 and 3 to recover the amounts due to the petitioner from the 1st respondent within a time frame and to pay the same to the petitioners and to pass such other order or orders as this Hon'ble Court may deem fit and proper in the circumstances of the case. Counsel for the Petitioner:MR.M.SUDHIR KUMAR Counsel for the Respondents: GP FOR REVENUE WRIT PETITION NO : 14382 of 2007 Between: 1 V. Jagan Mohan Rao S/o.V. Nageswara Rao Hindusthan Cables Ltd., R/o. Plot No. 79, Madhava Nagar Colony, Saidabad, Hyderabad. 2 K. Subba RaoS/o.Bhushaiah 58 Hindusthan Cables Ltd., R/o. H,.No.1-7-9/1, Chaitanyapuri, Near Dilsukhnagar, Hyderabad. 3 S. Raghavendra Rao S/o. S. Venkoba Rao Hindusthan Cables Ltd., R/o. Pdlot No. 29, H.No. 8-143/1, Malkajgiri, Hyderabad. 4 U. Ramachidambaram Reddy S/o. U. Pera Reddy Hindusthan Cables Ltd., R/o. H.No. 12-05-4, Marutinagar, Moosapet, Sanathnagar, Hyderabad. 5 U.V.K. Sudarshan S/o.U. Sajeeva Raju Hindusthan Cables Ltd., R/o.H.No. 3-11-9, K.L. Reddy Nagar, Hyderabad. 6 P. Prasada Rao S/o.P. Prakasa Rao Hindusthan Cables Ltd., R/o. H.No. 42-440, Gayatrinagar, Moula Ali, Hyderabad. 7 D. Rajender Rao S/o. D.Y. Yadagiri Rao Hindusthan Cables Ltd., R/o. Plot No. B-7, New Asha Officers Colony, R.K. Puram, Secunderabad. 8 K. Mallikarjuna Rao S?o.K. Ramaiah Hindusthan Cables Ltd., R/o. H.No. 1-1-419/F8, Swagruha Apartments, Gandhinagar, Hyderabad. 9 P.Manikyam S/o.Satyanarayana Hindusthan Cables Ltd., R/o. H.No.201/3RT, Near Foot Ball play Ground Vijayanagar Colony, Hyderabad. ..... PETITIONERS AND 1 Hindusthan Cables Ltd., Rep. by its Chief General Manager, Hindusthan Cables Post, Hyderabad. 2 The District Collector, Ranga Reddy District, Hyderabad. 3 The Mandal Revenue Officer, Uppal Mandal, Ranga Reddy District. Uppal. 4 Assistant Labour Commissioner (Central) & Controlling Authority under P.G. Act 1972 A.T.I. Campus, Vidyanagar, Hyderabad-07 .....RESPONDENTS Petition under Article 226 of the constitution of India praying that in the circumstances stated in the Affidavit filed herein the High Court will be pleased to issue a writ, order or direction more in the nature of writ of Mandamus declaring the action of the 1st respondent in not paying the amounts due to the petitioner under the lawful and final orders of the controlling Authority under the payment of Gratuity Act 1972 as illegal, arbitrary violative of Art. 14, 16 and 21 of the Constitution of India and consequentially to direct the 1st respondent to make payment of the amounts due to the petitioners under the respective orders of the controlling authority under the payment of Gratuity Act, 1972 forthwith or alternatively to direct the respondents 2 and 3 to recover the amounts due to the petitioner from the 1st respondent within a time frame and to pay the same to the petitioners and to pass such other order or orders as this Hon'ble Court may deem fit and proper in the circumstances of the case. Counsel for the Petitioner:MR.M.SUDHIR KUMAR Counsel for the Respondents: GP FOR LABOUR The Court made the following : COMMON ORDER: The subject matter in all these writ petitions is one and the same. Hence, they are being disposed of by this common order. The parties herein are referred to as arrayed in W.P.No.4101 of 2008, for the purpose of convenience. The petitioner is a Public Sector Undertaking, which has since become sick. Respondents 3 to 23 are its former employees. On account of its having become sick, proceedings were initiated before the BIFR. A scheme of voluntary retirement was also introduced. Respondents 3 to 23 (for short “the employees”) and other employees opted for it and accordingly were retired, duly extending the monetary benefits. The employees approached the second respondent with individual applications under sub-sections (2) and (3) of Section 7 of the Payment of Gratuity Act, 1972 (for short “the Act”), with a prayer to grant them the relief of gratuity, payable on the difference of pay, in view of the orders passed by the Central Government on 31.05.2001, extending the benefit of revised pay scales to the employees of the petitioner. The claim was opposed by the petitioner. Through separate orders, dated 06.10.2003, the second respondent passed orders upholding the claim and directing the petitioner to extend the gratuity payable on the difference of pay, on the basis of the application of the revised pay scales. Interest at 10% per annum was also awarded. The petitioner presented appeals before the first respondent- Regional Labour Commissioner, after expiry of limitation. The appeals were not entertained. The petitioner feels aggrieved by the action of the first respondent and filed W.P.Nos.4089 and 4101 of 2008. It is urged that the very entitlement of the employees to be extended the benefit of revised pay scales is in doubt and not certain. It is represented that the employees filed W.P.No.24197 of 2002, claiming the benefit of revised pay scales and other reliefs and that the same was allowed. In W.A.No.919 of 2004, the judgment in the writ petition is said to have been stayed. On behalf of the employees, a vacate stay petition is filed. It is stated that even according to the petitioner, the appeals are time barred and sub-section (7) of Section 7 of the Act bars the appeals, after expiry of 120 days under any circumstances. It is urged that there are no bona fides on the part of the petitioner. W.P.Nos.14010 and 14382 of 2007 are filed by the employees for implementation of the orders passed by the second respondent. Heard Sri A.Sanjeev Kumar, learned counsel for the petitioner, Smt.H.Seetha Devi, learned counsel for respondents 1 and 2 and Sri M.Sudheer Kumar, learned counsel for the employees. The facts, in these writ petitions present a peculiar situation. The employees took voluntary retirement and it is not in dispute that the benefits calculated at the relevant point of time were extended to them. The retirement took place in 2000 and 2001. After the employees stood retired under VRS, the President of India issued proceedings, dated 31.05.2001, extending the benefit of revised pay scales to the employees in public sector undertakings. Many employees, who retired under VRS, approached this Court by filing W.P.No.24197 of 2002, claiming the benefit of revised pay scales vis- à-vis retirement benefits. In short, they wanted their benefits to be calculated on the basis of the revised pay scales. The writ petition was allowed by this Court on 11.11.2003. The petitioner filed W.A.No.919 of 2004. A Division Bench of this Court passed an interim order in W.A.M.P.No.1668 of 2004 suspending the judgment in the writ petition. The consequence is that the employees, who retired from the service of the petitioner under VRS, were not entitled for the benefit of revised pay scales, pending disposal of the writ appeal. The claims before the second respondent were made at a time when the interim order passed by a Division Bench of this Court was operating. The second respondent, however, tried to make a distinction by observing that the subject matter of the writ petition in writ appeal is only benefit of pay scales and not the gratuity. He appears to have lost sight of the fact that the question of paying the gratuity to an employee would arise, if only there does not exist any dispute as to the payment of the corresponding salary. When the employees were incapacitated from claiming the benefit of revised pay scales, the question of granting gratuity, based thereon, does not arise. What is claimed by the employees is difference of gratuity and not gratuity, as such. It is true that the orders of the second respondent, as such, are not challenged in W.P.Nos.4089 and 4101 of 2008. However, being a Court of record, this Court cannot remain oblivious, if something happens before any authority contrary to the specific orders passed by a Division Bench of this Court. Hence, W.P.Nos.4101 and 4089 of 2008 are allowed and the corresponding orders passed by the second respondent granting the relief of difference of gratuity, on the basis of the revised pay scales are set aside. The applications shall, however, remain on the file of the second respondent and they shall be taken up for hearing, after the disposal of W.A.No.919 of 2004. Consequently, W.P.Nos.14010 and 14382 of 2007 are dismissed. There shall be no order as to costs. ____________________ L.NARASIMHA REDDY, J. Dated:02.07.2008 GJ