IN THE HIGH COURT OF JUDICATURE, ANDHRA PRADESH AT HYDERABAD (Special Original Jurisdiction) MONDAY, THE TWENTY EIGHTH DAY OF APRIL TWO THOUSAND AND EIGHT PRESENT HON'BLE SRI ANIL R. DAVE, THE CHIEF JUSTICE And HON'BLE SRI JUSTICE R.SUBHASH REDDY WRIT APPEAL Nos : 454 & 455 of 2008 WRIT APPEAL No.454 of 2008 (Writ Appeal under Clause 15 of the Letters Patent against the Order dated 05/03/2008 in WP NO : 15970 OF 2005 on the file of the High Court.) Between: J. Rama Rao S/o J.V.S. Nagabhushana Rao Plot No. 32, Jai Jawan Colony, KAPRA, ECIL Post, Hyderabad-62 ..... APPELLANT AND 1 The Andhra Pradesh State Co-opertive Bank Ltd., Rep by its General Manager, Troop Bazar, Hyderabad , 2 The Managing Director, M/s.Kotsun Chemicals Ltd., Plot No.312, Annapoorna Block, Aditya Enclave, Ameerpet, Hyderabad. 3 K.S.Chowdary, S/o.Late Kolla Kotaiah, of Kotsun Chemicals Ltd., 8-3-976/86/1/1, Shalivahananagar, Yousufguda, Hyderabad. 4 K.Vijay Kumar, S/o.K.Dasaiah, Plot No.D-70, Madhuranagar , Hyderabad. 5 Mrs.K.Annapoorna , W/o.k.Dasaiah, Plot No.D-70, Madhuranagar, Hyderabad. 6 B.Subba Rao, R/o.Post Appapuram, Kakumarru Mandal, Guntur district. 7 S.Narayana Swamy, R/o.Post Oleru, Repalle, Guntur district. 8 The Deputy Commissioner of Labour, Hyderabad (Twin Cities), .....RESPONDENTS Counsel for the Appellant : MR.MOHAMMAD YOUSUFUDDIN Counsel for Respondent No.1 : MR.D.KRISHNA MURTHY Counsel for the Respondent No.7: GP FOR LABOUR Counsel for Respondent Nos.2 to 6: NONE APPEARED WRIT APPEAL No.455 of 2008 (Writ Appeal under Clause 15 of the Letters Patent against the Order dated 05/03/2008 in WP NO : 2330 OF 2006 on the file of the High Court.) Between: J. Rama Rao, S/o. J.V.S. Nagabhushan Rao, Plot No. 32, Jai Jawan Colony, Kapra, ECIL Post, Hyderabad -62. ..... APPELLANT AND 1 The Andhra Pradesh State Cooperative Bank Limited, Rep. by its GeneralManager, Troop Bazar, Hyderabad. 2 The Managing Director, Kotsun Chemicals Ltd., Plot No.312, Annapoorna Block, Aditya Enclave, Ameerpet, Hyderabad-38. 3 K.Vijaya Kumar, S/o.K.Dasaiah, Plot No.D-70, Madhuranagar, Hyderabad. 4 Mrs.K.Annapoorna, W/o.K.Dasaiah, Plot No.D-70, Madhuranagar, Hyderabad. 5 B.Subba Rao, S/o. R/o.Post Appapuram, Kakumanu Mandal, Guntur District. 6 S.Narayana Swamy, R/o.Post Oleru, Repalle, Guntur District. 7 The Additional Industrial Tribunal Cum Additional Labour- Court, Chandravihar, A.P., Hyderabad. .....RESPONDENTS Counsel for the Appellant : MR.MOHAMMAD YOUSUFUDDIN Counsel for Respondent No.1 : MR.D.KRISHNA MURTHY Counsel for the Respondent No.7: GP FOR LABOUR Counsel for Respondent Nos.2 to 6: NONE APPEARED The Court made the following : HON'BLE SRI ANIL R. DAVE, THE CHIEF JUSTICE And HON'BLE SRI JUSTICE R.SUBHASH REDDY WRIT APPEAL Nos : 454 & 455 of 2008 COMMON JUDGMENT : (Per Hon’ble The Chief Justice Sri Anil R.Dave) Being aggrieved by the common order passed in Writ Petition Nos.15970 of 2005 and 2330 of 2006, dated 5th March 2008, these two appeals have been filed by the employee, who had claimed the amount of gratuity from his employer. The facts giving rise to the present appeals in a nutshell are as under : The appellant/employee was working under respondent No.2, M/s.Kotsun Chemicals Limited. As the amount of gratuity was not paid, the appellant had initiated proceedings before the Labour Court being M.P.No.51 of 2003 praying for an order for payment of the amount of gratuity. The Labour Court, by an award dated 10th August 2005, was pleased to direct not only the employer but also the creditor of the employer to pay the gratuity amount to the appellant/employee. Being aggrieved by the award, creditor, the A.P.State Cooperative Bank Limited has filed writ petitions being Writ Petition Nos.15970 of 2005 and 2330 of 2006. After hearing the concerned advocates, the learned single judge has allowed the petitions by observing that the appellant/employee had no right to recover any amount from the creditor of the employer-the third party. It is pertinent to note that liability of the 2nd respondent/employer namely M/s.Kotsun Chemicals Limited has remained unaffected by virtue of the orders passed by the learned single judge. The aforesaid order passed by the learned single judge has been challenged in these appeals. The learned advocate appearing for the appellant has submitted that it is the right of the workman to recover the amount even from the creditor of the employer, who has attached the properties of the employer. It has to be noted that these are not the winding up proceedings. He has relied on a judgment of the Hon’ble Supreme Court in Textile Labour Association v. State of Gujarat[1], but it has been delivered in winding up proceedings. In our opinion, the learned single judge was justified in observing that the creditor of the employer could not have been made liable to make payment of liabilities of the employer/debtor. It is open to the appellant to recover the amount awarded to him from the employer by taking appropriate legal remedy. For the aforesaid reasons, we do not find any error in the judgment delivered by the learned single judge. Therefore, the appeals are dismissed. _________________ ANIL R. DAVE, CJ 28th April 2008 ______________________ R. SUBHASH REDDY, J ajr To 1 The Chief Secretary, Buildings, State of Andhra Pradesh, Hyderabad 2 The Principal Secretary to the Govt, Revenue Department, L.Block, Secretariat Buildings, Hyderabad 3 The Chief Commissioner of Land Administrtion cum Commissioner Land Revenue, Board of Revenue Buildings, Nampally Station Road, Hyderabad-500001 4 The Collector & District Magistrate, R.R.District Collectorate Adjacent to Global Hospital Saifabad, Hyderabad-500004 5 The Revneue Divisonal Officer, Chevella Divison R.R.District, RDO office Attapur, Rajendranagar Mandal, R.R.District, AP 6 The Mandal Revenue officer, Rajendranagar Mandal Rajendranagar, R.R.District, A.P. [1] 1994 II LLJ 303