IN THE HIGH COURT OF JUDICATURE, ANDHRA PRADESH AT HYDERABAD (Special Original Jurisdiction) WEDNESDAY, THE EIGHTH DAY OF APRIL TWO THOUSAND AND NINE PRESENT THE HON'BLE SRI JUSTICE C.V.NAGARJUNA REDDY WRIT PETITION Nos.17806, 19765 and 20201 of 2008 WRIT PETITION NO : 17806 of 2008 Between: 1 M/s. Hindustan Machine Tools Ltd., 59, Bellary Road, Bangalore Rep. by its Chairman and Managing Director 2 The Deputy General Manager, M/s. Hindustan Machine Tools Ltd., Narasapur Road, Balanagar, Hyderabad. ..... PETITIONERS AND 1 The Regional Labour Commiossioner (Central) A.T.I. Campus, Vidya Nagar, Hyderabad. 2 The Assistant Labour Commiossioner (Central) A.T.I. Campus, Vidya Nagar, Hyderabad. 3 H. Brahma Chary S/o. Ramachary Srikrishna Nagar West, Safilguda Kupra Complex, Naredmet, Secunderabad. 4 T. Raghuveera Chary S/o. Late VenkataChary Laxmi Mansion, Pragathi Nagar, Yellareddyguda Hyderabad. 5 T. Suresh S/o. Anjaiah R/o. 3-4-770 & 136 Legend Apartments, Barkathpura, Hyderabad. 6 G.V. Raghavulu S/o. Braimaiah H.No. 8-247A, Vani Nagar, Chinthal, Hyderabad. 7 G. Narayana S/o. Late G. Jaggaiah 11-119, Sanjay Gandhi Nagar, Near Shapoornagar, Jeedimetla, Hyderabad. 8 Mohammed Quasim S/o. Shai Ramzan No. 20-6-332/1, Quadripura, Shalibunda, Hyderabad. 9 M.A. Mobin S/o. M.A. Monasi H.No. 16-8-851 New Malkapet, Hyderabad. 10 L. Megharaj S/o. Sitaramulu Plot No. 283/A, East Chandragiri Colony Neredmet, Secunderabad. 11 S. Chandraiah S/o. Teekiya H.No. 7-1-632/101/2, Bapunagar, S.R. Nagar Hyderabad. 12 K. Rajeswar Rao S/o. K. Shankaraiah Old Vani Nagar, Kharkhana, Secunderabad. 13 S. Narender S/o. S. Krishna Murthy North Lalaguda, Secunderabad. 14 Gulam Yaseen S/o. Late Gulam Dastagir H.No. 18-11-303/A, T.V. Tower , Moosarambagh Hyderabad. 15 G. Hanumanth Rao S/o. G. Jaggaiah H.No. 17-7-823, Yakutpura, Bramanwadi, Hyderabad-53 16 S. Padmaiah S/o. S. Viswanatham H.No. 18-4-258/4, Aliabad, Hyderabad. 17 K. Prabhakar K. Adavaiah H.No. 22-1-223, Kalikhabar, Chaderghat Hyderabad. 18 Wahed Ullaha Khan S/o. Asadullah Khan H.No. 22-1-336, Sulthapura, Hyderabad. 19 K. Lalitha Wo. Rajender, Flat NO. 320, Meghamata Classics Hyderabad. 20 K. Venkat Rao S/o. Badraiah H./No. 1-8-154, Temple Alwal, Bolaram, Secunderabad. ...RESPONDENTS WRIT PETITION NO : 19765 of 2008 Between: 1 M/s Hindustan Machine Tools Limited, 59, Bellary Road, Bangalore, rep by its Chairman and Managing Director. 2 The Assistant General Manager[HRW], M/s.Hindustan Machine Tools Limited, Narasapur road, Balanagar, Hyderabad. .. PETITIONERS AND 1 The Regional Labour Commissioner, (Central) A.T.L. Campus, Vidya Nagar, Hyderabad. 2 The Assistant Labour Commissioner, (Central) A.T.I.Campus, Vidya Nagar, Hyderabad. 3 K.Laxmi, W/o. K.bhaskar Rao, Plot No.582, HMT HIlls, Kukatpaly, Hyderabad-72 4 D.Sathaiah S/o. Narsimha, H.No.2-124/1, Dundigul village and Post, Near A.F.A., Ranga Reddy district. 5 B.Venkatesham, S/o. Mangaiah, Plot No.186, Saipuri Colony, Behind Sairam threatre, Malkajgiri, Hyderabad. 6 T.swatantra Kumar, s/o. T.Kishan Kumar, H.No.12.11.1390/61, Buddha Nagar, Sanjay Gandhi Nagar, Secunderabad-81 7 A.Rajesham, S/o. Venkatramulu, H.No.18-78/A/1, Kamala Nagar, road No.3, Dilsukh Nagat, Hyderabad. 8 M. Pradeep Singh S/o. Pratap Singh H.No.2-8-39/1/A, Surya Colony, Behind Cantonment Hospital, Bollaram, Secunderabad-10. 9 Cecilia D. Souza R/o. C/o. T. Balreddy Advocate, Flat No.102, Raghava Deluxe Apts., 6-1-363, New Boiguda, Secunderabad. 10 K. Vijaya Vani H.NO.1-2-607/A, Near Vartha Office, Lower Tank Bund, Hyderabad. 11 V. Prabhavathi W/o. Rajagopala Rao MIG-180, Bharatnagar Colony, Sanathnagar, Hyderabad-18. 12 B. Rajendra Kumar R/o. Plot No.33, Harshavardhana Enclave, Old Bowenpally, Secunderabad. 13 R. Laxmaiah S/o. Narayana H.No.29-1503/6/3, West Kakatiya Nagar, Secunderabad. 14 P. Ramachandra Reddy R/o. Plot No.6, Shanthi Nagar Colony, Risala Bazar, Secunderabad 15 P. Laxmi Samrajyam W/o. Rajababu 4-32/357, Shapoor Nagar, Hyderabad-55. 16 B.Jalandhar Reddy, R/o. 49-344/1, Bal Reddy Nagar, H.M.T. Post, Chinthal, Hyderabad 17 G.Seshagiri Rao, H.No.1-8-724/34, Padma Colony, Nallakunta, Hyderabad-44 18 Smt. T.Pochamma, R/o. C/o. T.Balreddy, Flat No.102, Raghava Deluxe Apts., 6-1-363, New Boiguda, Secunderabad. 19 M.K.Prasad Rao, R/o. Flat No.185, Saipuri Colony, Behind Sairam Theatre, Malkajgiri, Hyderabad-47 20 Smt. louea Johnson, W/o. Johnson Jackob, H.No.12-13-694, Nagarjuna Nagar Colony, Tarnaka, Secunderabad. 21 Smt. P.Anuradha Redy, W/o. P.Sarvadhari, R/o. Plot No.129/D/1, Saraswathi Nagar Colony, Lothu Kunta, thirumalagiri, Secunderabad-15 22 Smt. G.J.Usha Devi, W/o. Edward Names, R/o. C/o. T.Balreddy, Advocate, Flat No.102, Raghava Deluxe Apts., 6-1-363, New Boiguda, Secunderabad. 23 B.Prem Kumar, r/o. No.1-4-68/1, Bholakpur, Hyderabd-80 24 B.Prakash, S/o. balaiah, H.No.26-122/1/32/2 Sharada Nagar, Safilguda, Hyderabad. 25 B. Vijaya Lakshmi W/o. Gyneshwar Plot No.15, Jawahar Rail Colony, Sikh Road, Secunderabad-9. 26 T. Gyaneswar S/o. T. Mallaiah R/o.29-1487, West Kakatiya nagar, Secunderabad-56. 27 M. Prabhakar Rao S/o. Danaiah H.No.12-10-337/4/1, Seethaphalmandi, Secunderabad-61. 28 R. Surya Kumar S/o. Damodhar R/o. Flat No.203, TNR Residency, Near Suchitra Electronics, Jeedimetla, Hyderabad. 29 K.A.M. Prasad S/o. Krishna Murthy R/o. H.NO.29-1488/A, Neredmet, West Kakatiya Nagar, Secunderabad-56. 30 Rama Lakshmi W/o. Ram Mohan H.No.40/3RT, Vijayanagar Colony, Hyderabad. 31 P. Girija W/o. Krishnarjuna Rao H.No.40/3RT, Vijayanagar Colony, Hyderabad. 32 T. Anasuya W/o. Late Ramachandar H.No.203, 2nd Floor, Srihari Nivas, Subodhaya Colony, Kukatpally, Hyderabad. 33 S. Parijatham W/o. Gnaneswar Rao H.NO.20/3-1-6, Picket, Secunderabad-26 34 L. Jerosa W/o. Jabamani H.No.1-6-4831, Gemini Colony, Hyderabad. 35 G.Yadagiri, H.No. 5-1-20, Kukatpally Villance, Hyderabad-72 36 Smt.R.Poomani, W/o.Ramarao, H.No.81, Kharkhana, Secunderabad. 37 Ch. Narendram, H.No.6-1-132/45, Sai Elignece, Flat No.202, 2nd Floor, Padmarao Nagar, Hyderabad. 38 Smt. J.lakshmi Bai, W/o. late J.shankaraiah, H.No.29-884, Vinayaknagar, Neredmet, Malkajgiri, Secunderabd. 39 P.Suryanarayana, H.No.12-11-387/10, Maruthi street, Warasiguda, Secunderabad. 40 B.Ashok Kumar, H.No.3-4-729, Near Brilliant School, Narayanaguda, hyderabd. 41 Smt.T.V.Jayapradha, W/o. T.V.S. Janardhan, Plot No.100, Flat No.6, Sai charan Residency, Chandragiri Colony, Safilguda, Sedunderabad. 42 K.Vedyadhar, H.No.13-1-38, Swamy Vivekananda Street, Avulamanda, Secunderabad. 43 M.A.Razack, H.No.3-4-61/84, Maharaj Colony, Tolichowky, Hyderabad. ..RESPONDENTS WRIT PETITION NO : 20201 of 2008 Between: 1 M/s. Hindustan Machine Tools Limited, 59, Bellary Road Bangalore, rep.by its Chairman and Managing Director 2 The Asistant General Manager (HRM),M/s.Hindustan Machine Tools Limited, Narasapur Road, Balangar, Hyderabad ..... PETITIONERS AND 1 The Regional Labour Commissioner (Central), A.T.I Campus, Vidyanagar, Hyderabad 2 The Assistant Labour Commissioner (Central), A.T.I.Campus Vidya Nagar, Hyderabad 3 E.Gajendra S/o.Late E.Gangulu R/o.# 11-2-472/2/5/1, Upparbasthi,Namalagundu, Secunderabad 4 D.Mahender Plot No.50, HMT Shatavahana Nagar colony Opp;KPHB Colony, Kukatpally-72 5 V.Ramesh H.No.6-138,Dwarakapuri Medi Bavi Sitaphalmandi, Secunderabad-500061 6 V.Subba Reddy Plot No.592, HMT Hills, Opp:JNTU,Kukatpally- 072 7 Satyanarayana, S/o.Sri ramulu R/o.# 7-2-1087/A/129, B.K.Guda S.R.Nagar,Hyderabad-38 8 U.Mahesh S/o.U.Gopal Plot No.14,Kakatiya Nagar,Chulla Kuthbhullapur, Hyderabad-54 9 V.Sudhakar, H.No.1-9-34, Kushaiguda,ECIL,Hyderabad-62 10 D.Aravind, Plot No.106,Sri Sai nagar,Near Fancy Aprts Bhagyanagar colony, KPHB Kukatpally,Hyderabad-72 11 D.Kanakarajan S/o.D.Narayana R/o.1-8-702/21/1,Padma Nagar Nallakunta,Hyderabad-500044 12 J.Yadaiah S/o.J.Bikhshapathy H.No.17-1-1391/T/258 Saraswathi Nagar,Hyderabad-500059 13 B.Babaiah,H.No.7-1-316,Balkampet,S.R.Nagar Hyderabad- 500059 14 Y.Narasimha S/o.Chandraiah H.No.16-52/2, Sri Krishna nagar Dilsukhnagar,Hyderabad-500060 15 M.Satyanarayana S/o.M.S.Narayana RAo F.No.209/7,Kranthi Sikhira Apts., HUDA complex, Saroornagar, Hyderabad-500035 16 D.Somalingam S/o.D.Ramulu H.No.17-1-391/T/195 Saraswathi Nagar, Saidabad,Hyderabad- 500059 17 S.Mohan Reddy S/o.Late Malla Reddy H.No.1-12-194 Beside Plot No.14, Anand Nagar,Chinna Thokatta Secunderabad 18 B.Badrinarayana S/o.Late B.Ramaiah H.No.2-12-62, Annapurna colony,Uppal Hyderabad-39 19 H.Hari Raj S/o.Late Rajanna H.No.7-5818,Beside SNH Bank,Macha Bollaraum Secunderabad 20 K.Sanjeeva H.No.12-02-692/A,Opp;Vegitable Market Gudimalkapur Hyderabad 21 P.Anjaneya No.3-5-675/A,2nd floor, Vittalvadi,Narayanaguda,Hyderabad-27 22 R.Vivekananda S/o.R.Suryanarayana H.No.12-10-586/12,Medi Bavi Sitaphalmandi,Secunderabad- 500061 23 K.B.Kedernath S/o.K.S.Bala Krishna R/o.Plot No.18,RCH Colony Secunderabad-9 24 N.Ramulu S/.o.Devaiah H.No.4-4-102, Kutbullapur R.R.District, Hyderabad-500054 25 P.S.Murthy S/o.P.Ramananna P.No.40, Saipriya colony Kapra,Hyderabad-500063 26 V.Satyanarayana S/o.Narasimham H.No.3-347/1/A,Sumithra Nagar Bagh Ameer,Kukatpally Hyderabad-500087 27 Smt.K.Bhulakshmi W/o.Rajendra RAo H.No.3-4-968,Satya Nagar Barkatpura,Hyderabad-500007 28 Smt.G.Aruna Kumari D/o.Jyothi Raju Plot No.365,HMT Hills Kukatpally,Hyderabad-500072 29 Smt.N.Samyukta Reddy W/o.Jagan Mohan Plot No.463,HMT hills Kukatpally Hyderabad-500072 30 Smt.K.Rajamani D/o.Shanker Rao H.No.12-11-831/15/2,Warasiguda Secunderabad-500016 31 Ch.Suresh Babu S/o.Yadaiah H.No.1-5-1,Old Alwal,Secunderabad-500010 32 P.Narsing S/o Late P.Magulaiah,C/o.Sri T.BalReddy, Advocate, Flat No.102,Raghaved Deluxe Apts., 6-1-363,New Bhoiguda,Secunderabad 33 Smt.A.Damayanthi W/o.Manik PRabhu R/o.10-5-72/2,Sai Nagar,North Lalaguda Tukaram Gate, Secunderabad 34 Smt.Mahaboob Begum W/o.Riasat Ali Jahanuma Rool Bagh Hyderabad-500265 .RESPONDENTS Counsel for the Petitioners:MR.S.V.BHATT Counsel for the Respondents 3 to 34: SRI A.K.JAYAPRAKASH RAO The Court made the following : COMMON ORDER: The short question that arises for consideration in these three writ petitions is whether the petitioners, who are common in all these writ petitions, are entitled to the indulgence of this Court in seeking exemption from the requirement of pre-deposit under second proviso to Section 7(7) of the Payment of Gratuity Act, 1972 (for short “the Act”). The unofficial respondents (hereinafter referred to as “the employees”) were the employees of the petitioners. Under a scheme framed by the petitioners, they have taken voluntary retirement in the year 1996-97. They admit that they received gratuity for a period of about 19 years. Almost 10 years later, they approached respondent No.2, who is the controlling authority under the Act, purportedly under Section 7(4) (e) of the Act, for payment of balance gratuity. By a detailed order passed by respondent No.2, the employees’ applications were allowed and the petitioners were directed to pay the gratuity amount apart from interest. Questioning the said orders, the petitioners filed statutory appeals under Section 7(7) of the Act before respondent No.1. The said appeals were not registered in view of the fact that the petitioners failed to comply with the pre-deposit requirement as envisaged under second proviso to Section 7(7) of the Act. Therefore, the present writ petitions are filed to exempt the petitioners from payment of the said deposit amounts as a condition for entertaining and disposal of the appeals. At the hearing, Sri S.V.Bhatt, learned counsel for the petitioners, strenuously urged that the employees, who have received the gratuity amount without any demur as far back as the year 1996-97, approached respondent No.2 without even seeking condonation of delay. He further submitted that the reasoning of respondent No.2 in entertaining the applications and rejecting the objection of the petitioners regarding inordinate delay is absolutely unsustainable. He questioned the authority of respondent No.2 in suo motu condoning the delay. The learned counsel also submitted that as the employees have received the gratuity under voluntary retirement scheme, they are not entitled to raise a dispute. The learned counsel further submitted that the petitioners are not in a happy financial position as most of their units are wound up and they are running on losses and therefore, payment of gratuity along with interest for the period of nearly 11 years is too onerous. Sri A.K.Jayaprakash Rao, learned counsel for the employees, opposed these contentions and submitted that the petitioners are bound by the statutory provision, which mandates making of pre- deposit as a condition for maintaining the appeal, and therefore, they are not entitled to any exemption. In the first place, I would like to refrain from giving a finding on the correctness or otherwise of the approach of respondent No.2 in suo motu condoning the delay in the absence of any such application having been made by the employees because, that will be the subject matter of the appeal before respondent No.1. But the fact remains that Rule 10 of the Payment of Gratuity (Central) Rules, 1972 prescribes a period of 90 days for an employee to make a claim for gratuity in Form ‘N’. Admittedly, there is a delay of more than 10 years in filing such Form and no application for condonation of delay is filed. It is also evident from the record that the employees have not raised any dispute for 10 years before they approached respondent No.2 for payment of the gratuity. Even assuming that the employees are entitled to receive gratuity, the question that is required to be decided by respondent No.1 is whether the petitioners are liable to pay interest for a period of 10 years, during which no claim was made by the employees. It is submitted by the learned counsel for the petitioners, and not disputed by the learned counsel for the employees, that the interest component of the amount surpasses the gratuity component and it constitutes more than 100% of the gratuity. Under these circumstances, in my opinion, interests of justice would be met if the petitioners are permitted to pursue the statutory appeals filed before respondent No.1 subject to the condition of their depositing 50% of the gratuity amount directed to be paid by respondent No.2 excluding the interest component thereon. Ordered accordingly. On such deposit by the petitioners, within a period of twelve (12) weeks from today, respondent No.1 shall entertain and dispose of the appeals, on merits. The amount deposited by the petitioners shall be kept in a deposit, which shall be subject to the result of the appeals. The writ petitions are, accordingly, disposed of. As a sequel to disposal of main petitions, WPMP Nos.25814 and 25815 of 2008 in W.P.No.19765 of 2008 and WPMP No.26376 of 2008 in W.P.No.20201 of 2008 are disposed of as infructuous. C.V.NAGARJUNA REDDY, J Dated 8th April, 2009 vrn