JHARKHAND HIGH COURT ISSUES ORDER ON SIGNODE INDIA V/S THE STATE OF JHARKHAND AND ORS.

RANCHI, India, Feb. 8 -- Jharkhand High Court issued the following order on Jan. 8:

1. The present Appeal has been filed under Clause-10 of the Letters Patent against the order dated 19.02.2024 passed by the learned Single Judge in W.P.(S) No. 3244 of 2023, whereby and whereunder, the learned Single Judge while dismissing the writ petition filed by the petitioner (appellant herein) had not interfered with the order dated 18.4.2019 passed by the respondent no.2 in Case No. GA-3/2017 and order contained in Memo No. 732/Ranchi, dated 19.4.2023 passed by Labour Commissioner, Jharkhand-cum-Appellate Authority under payment of Gratuity Act, 1972 [in short, Act] in Appeal Case No. P.G.-5 of 2019 and has held that the respondent no.3 is entitled for claim of gratuity under the Payment of Gratuity Act, 1972.

Factual Matrix

2. The brief facts of the case as per the pleadings made in the writ petition as well as impugned order needs to refer herein which reads as under:

(I) Petitioner (appellant herein) is a Company incorporated under the Companies Act, 1956 and is manufacturer and supplier of the industrial packaging, consumables, equipment and services to its customers across the country and its operations are spread across geographical territory of India.

(II) The case of the petitioner is that in view of agreement dated 04.11.2000, the respondent no. 3 was engaged as a Retainer by the Jamshedpur Unit of the Company with effect from 15.11.2000 for which consultation fee of Rs.30,000/- was agreed to be paid to him. The agreement was initially valid for a period of five years from 15.11.2000.

(III) The said agreement was renewed from time to time and the last extension was granted to him vide extension letter dated 23.08.2016. The respondent no.3 worked in the petitionerCompany for the period from 23.11.2000 to 31.10.2016 as a Retainer and for which service certificate dated 05.01.2017 was also issued by the Company.

(IV) The respondent no.3 made an application in Form-1 under Payment of Gratuity Rule, 1972 for payment of full gratuity, which was turned down by the Company holding that the respondent no. 3 is not entitled to any other payments other than monthly Retainer Fee as per terms and conditions of the agreement.

(V) Thereafter, an application was also filed by the respondent no.3 in Form-N under Gratuity Rules for payment of gratuity before the Deputy Commissioner-cum-Controlling Authority, Kolhan Division, Jamshedpur, which was registered as Case No. GA3/2017.

(VI) The Deputy Labour Commissioner, vide his order dated 18.04.2019, allowed the case no. GA-3/2017 in favour of the respondent no. 3 holding therein that he is entitled for payment of gratuity to the tune of Rs.5,16,928/- under the Payment of Gratuity Act, 1972.

(VII) Aggrieved by the same, an Appeal being Appeal Case No. PG05/2019 was filed by the petitioner (appellant herein) before the Labour Commissioner, Jharkhand-cum-Appellate Authority. The Appeal was also rejected, affirming the earlier order dated 18.04.2019 passed in Case No. GA-03/2017 with an order for payment of gratuity with simple interest at the rate of 10%.

*Rest of the document can be viewed at: (https://hcservices.ecourts.gov.in/ecourtindiaHC/cases/display_pdf.php?filename=bzPoyUlszYLCUcCpirIpqMrwpnbR5WdDS9sj%2Bf3XI7oBun56ED6Hx%2BB0O75vQ8BB&caseno=LPA/145/2024&cCode=1&cino=JHHC010094552024&state_code=7&appFlag=)

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