- 1 - NC: 2025:KHC:14367 WP No. 432 of 2025 C/W WP No. 28833 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 4TH DAY OF APRIL, 2025 BEFORE THE HON'BLE MR JUSTICE B M SHYAM PRASAD WRIT PETITION NO. 432 OF 2025 (L-PG) C/W WRIT PETITION NO. 28833 OF 2024 (L-PG) IN WP No. 432/2025 BETWEEN: DR. RAKESH KOUL SON OF MR. CHUNNI LAL KOUL, AGED ABOUT 59 YEARS, RESIDING AT NO. 1A, 703, AKME HARMONY APARTMENTS, OUTER RING ROAD, BELLANDUR, BENGALURU 560 103. …PETITIONER (BY SRI. TAHURA ANZAR.,ADVOCATE) AND: 1. THE STATE OF KARNATAKA DEPARTMENT OF LABOUR, VIDHANA SOUDHA AMBEDKAR VEEDHI, BENGALURU 560 001 REP BY GOVERNMENT PLEADER. 2. THE ASSISTANT LABOUR COMMISSIONER APPELLATE AUTHORITY Digitally signed by VANAMALA N Location: High Court of Karnataka - 2 - NC: 2025:KHC:14367 WP No. 432 of 2025 C/W WP No. 28833 of 2024 UNDER THE PAYMENT OF GRATUITY ACT, 1972 KARMIKARA BHAVANA, BANNERGHATTA ROAD, BENGALURU 560 029. 3. THE CONTROLLING AUTHORITY UNDER THE PAYMENT OF GRATUITY ACT, 1972 DIVISION NO. 6, KARMIKARA BHAVANA, BANNERGHATTA ROAD, BENGALURU-560 029 REP BY LABOUR OFFICE UNDER PG ACT. 4. SUNLARGE INDUSTRIES PRIVATE LIMITED A COMPANY REGISTERED UNDER THE PROVISIONS OF THE COMPANIES ACT, 2013, HAVING OFFICES AT. PLOT NO. 288/1/C BOMMASANDRA JIGANI LINK ROAD, KIADB INDUSTRIAL AREA, BANGALORE 560 105 REPRESENTED BY ITS DIRECTOR, MR. ADITHYA NANJUNDA …RESPONDENTS (BY MS.RASHMI RAO., HCGP FOR R1 TO R3; SRI. DUSHYANTH ARADHYA M.C, ADVOCATE FOR SRI. ABHINAG S ADVOCATE FOR R4) THIS WRIT PETITION IS FILED UNDER ARTICLE 227 OF THE CONSTITUTION OF INDIA PRAYING TO DIRECT THE R-3 TO RELEASE THE AMOUNT OF RS. 9,08,654/- (RUPEES NINE LAKHS EIGHT THOUSAND SIX HUNDRED AND FIFTY FOUR ONLY) DEPOSITED BY - 3 - NC: 2025:KHC:14367 WP No. 432 of 2025 C/W WP No. 28833 of 2024 THE R-4 IN FAVOUR OF THE PETITIONER HEREIN IN VIEW OF REPRESENTATION DATED 19.12.2024 (ANNX- A) AND DIRECT R-4 TO PAY 10 PERCENT INTEREST ON RS. 9,08,654/- FROM 30.07.2021 TILL DATE IN VIEW OF ORDER DATED 16.03.2024 (ANNX-E). IN WP NO. 28833/2024 BETWEEN: . SUNLARGE INDUSTRIES PRIVATE LIMITED A COMPANY REGISTERED UNDER THE PROVISIONS OF THE COMPANIES ACT, 2013, HAVING OFFICES AT, PLOT NO. 288/1/C, BOMMASANDRA JIGANI LINK ROAD, KIADB INDUSTRIAL AREA, BANGALORE - 560 105 REPRESENTED BY ITS DIRECTOR, MR. ADITHYA NANJUNDA ...PETITIONER (BY SRI. ABHINAG S.,ADVOCATE) AND: 1. THE STATE OF KARNATAKA DEPARTMENT OF LABOUR, VIDHANA SOUDHA, AMBEDKAR VEEDHI, BENGALURU - 560 001. 2. THE ASSISTANT LABOUR COMMISSIONER AND APPELLATE AUTHORITY UNDER THE PAYMENT OF GRATUITY ACT, 1972 KARMIKARA BHAVANA, BANNERGHATTA ROAD, BENGALURU - 560 029. - 4 - NC: 2025:KHC:14367 WP No. 432 of 2025 C/W WP No. 28833 of 2024 3. THE CONTROLLING AUTHORITY UNDER THE PAYMENT OF GRATUITY ACT, 1972 DIVISION NO.6, KARMIKARA BHAVANA, BANNERGHATTA ROAD, BENGALURU - 560 029. 4. DR. RAKESH KOUL SON OF MR. CHUNNI LAL KOUL, AGE ABOUT 59 YEARS, RESIDING AT NO.1A, 703, AKME HARMONY APARTMENTS, OUTER RING ROAD, BELLANDUR, BENGALURU - 560 103. ...RESPONDENTS (BY MS.RASHMI RAO., HCGP FOR R1 TO R3; MS. TAHURA ANZAR, ADVOCATE FOR C/R4) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO CALL FOR THE ENTIRE RECORDS IN SAKAAABEN-4/APGA/CR-33/2024-25 ON THE FILES OF R-3; SET ASIDE THE ORDER DATED 05.08.2024 PASSED BY R-2 IN SAKAAABEN-4/APGA/CR-33/2024- 25 (AT ANNX-A) IN ITS ENTIRETY, AND CONSEQUENTLY, ALLOW THE INTERLOCUTORY APPLICATION DATED 26.07.2024 FILED BY THE PETITIONER UNDER SECTION 5 OF THE LIMITATION ACT, 1963 (AT ANNX-F) PREFERRED BY THE PETITIONER BEFORE R-2. THESE PETITIONS, COMING ON FOR PRELIMINARY HEARING IN 'B' GROUP, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: - 5 - NC: 2025:KHC:14367 WP No. 432 of 2025 C/W WP No. 28833 of 2024 CORAM: HON'BLE MR JUSTICE B M SHYAM PRASAD ORAL ORDER If the petition in W.P.No.28833/2024 is by the employer calling in question the order dated 05.08.2024 [Annexure-A] in the appeal proceedings under Section 7(7) of the Payment of Gratuity Act, 1972 [for short, 'the Gratuity Act'], the petition in W.P.No.432/2025 [in which the early hearing application is filed] is by the employee who has sought for directions to the Controlling Authority under the Gratuity Act to release a sum of Rs.9,08,654/- deposited by the employer. 2. The outcome in these writ petitions admittedly must turn on whether the appellate authority is justified in dismissing the employer's appeal on the ground of delay without considering the application filed for condonation of delay. Sri Abhinag S., the learned counsel for the employer, without dispute from the other side, submits that the - 6 - NC: 2025:KHC:14367 WP No. 432 of 2025 C/W WP No. 28833 of 2024 employee's specific case is that the Controlling Authority's order dated 16.03.2024 is received on 21.03.2024 and the appeal is filed on 26.07.2024 and that if these two dates are undisputed, the appeal is not filed within the first 60 days as contemplated under Section 7(7) of the Gratuity Act, but is indeed filed within the next 60 days as contemplated under proviso to Section 7(7) thereof. 3. Sri Abhinag S also emphasizes that the impugned order is not by the appellate authority, but by the office of the appellate authority at the stage of scrutiny. Ms. Tahura Anzar, the learned counsel for the employee, submits that the employer has applied under Section 5 of the Limitation Act for condonation of delay and the Limitation Act would not apply. 4. Be that as it may, if the appeal is indeed filed within 120 days as is contemplated - 7 - NC: 2025:KHC:14367 WP No. 432 of 2025 C/W WP No. 28833 of 2024 under Section 7(7) of the Gratuity Act, but not within the first sixty days, the power to condone, provided sufficient cause is shown, would be available under Section 7(7) of the Gratuity Act and the cause must be examined by the appellate authority to opine on merits of such cause. The employer is entitled for indulgence on both these counts and the appeal restored for fresh consideration but expeditiously. In the light of the afore, the following: ORDER [A] The petition in W.P.No.28833/2024 is allowed- in-part quashing the appellate authority's order dated 05.08.2024 [Annexure-A] restoring the proceedings for due consideration leaving all questions, including the question on merits, open to be considered. The employer and the employee shall without further notice appear before the appellate authority on 26.05.2025. - 8 - NC: 2025:KHC:14367 WP No. 432 of 2025 C/W WP No. 28833 of 2024 [B] The petition in W.P.No.432/2025 stands disposed of with liberty to the petitioner therein to pursue remedy subject to the outcome in the appeal. Sd/- (B M SHYAM PRASAD) JUDGE SA ct:sr