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    Pondy mill asked to sell property, pay gratuity

    The Madras High Court has directed Pondicherry Textile Corporation (PTC) to pay up gratuity to its retired staff by selling the properties in its possession

    Pondy mill asked to sell property, pay gratuity
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    Chennai

    Justice B Rajendran while disposing a contempt plea filed in this regard, held “it is evident that there is no need to get Central Government permission to sell the lands for paying up the gratuity. 

    Since the District Collector is the competent authority for payment of gratuity, the PTC shall sell the properties under the supervision of the district collector and settle the dues through the district collector.” Puducherry Government Advocate A. 

    Tamilvanan had contended that as per section 8 of the payment of Gratuity Act, it is the liability of PTC earlier known as Anglo French Textiles to pay the amount and the Government has no role to play. He sought the Court to review its earlier order, which laid the onus on the Puducherry Government to pay up the gratuity. 

    The petitioners on the other hand had sought to punish the Puducherry Government for failing to abide by the Court order on September 16, 2014, which fixed four months to complete the Revenue Recovery Proceedings and pay the amount along with an interest of 10% pa. The judge on recording the Government Advocate’s submission that already 35 per cent of the amount payable to the petitioners have been deposited and the balance 65 per cent will be paid within a period of four weeks, closed the contempt petition.

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