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Deepak Narayan Bhandarkar   21 August 2018

when does an interim order of high court act as a bar on jurisdiction of Controlling Authority under PG Act 1972 ?

1- Employee filed writ petition in high court in 2004 against his removal from service by employer for unauthorised absence .
2-In 2010 , high court remitted the matter to the appellate authority of the employer for reconsideration.
3-In 2011 , appellate authority upheld removal order . Employee's dues ( PF & Gratuity ) were not settled , no reasons were given for it .
4- In 2013 ,Employee again moved high court against the order and seeking a direction to employer for releasing dues admitted by the employer.
5- In 2014 , employer agreed to release the dues immediately but without any interest . Court said that interest will be considered at the final hearing .
6- In 2015 , as gratuity amount paid by employer was found to be incorrect , employee approached Controlling Authority under P . G . act 1972 for correction .
7- In 2017 , Controlling Authority allowed differential amount of gratuity but did not allow interest for delayed period from 2004 to 2015 , saying that same is before the court .

8- It is well known that courts have put SELF IMPOSED restriction on it's jurisdiction when petitioner has alternate remedy and have ordered them to seek remedy at other forum first .
9- In view of Controlling Authority allowing differential amount of gratuity indicates that court has not exercised it's jurisdiction .
Question
1- Did Controlling Authoity err in not allowing interest as per provision of P G Act ?
2- Does interim order of high court act as a bar on jurisdiction of statutory authority and prevent it from carrying out it's statutory obligation ?
3- What is the remedy ?
4- Which forum employee should agitate for correction in Providend Fund and interest ?


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 2 Replies

P. Venu (Advocate)     21 August 2018

Pleas make the posting consistent and simple.

Deepak Narayan Bhandarkar   22 August 2018

Sir , 

Could not understand the comment . 

Points 1 to 7 are facts .     Point no 8 is an established legal position    while point no 9  is in support of point no 8 .

When Controlling Authority decided to conduct proceedings on application , employer did not approach court to seek restraining order on CA .But While delivering decision , Controlling Authority did not allow interest on dalayed period for payment of  gratuity  sighting court's interim order . 

Hope there is now clarity . 


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