HC directs Pondy to auction property to pay gratuity dues

The Madras High Court has directed Puducherry government to auction the property belonging to now-defunct Anglo-French Textiles and from the sale proceeds, pay the gratuity to employees who retired during 2011-12.
The matter relates to petitions filed by nine employees of Anglo-French Textiles which is now called Pondicherry Textiles Corporation.
In September 2014, the court gave four months to the district collector to proceed with recovery proceedings and directed the government to pay the amount with interest to the employees. While the employees filed contempt petitions for non-compliance of the order, the government sought review of the ruling.
Justice Rajendran, partially modifying the earlier order, held that the territorial administration did not have to obtain permission from the Centre as the latter had no role to play in the matter.

Noting that the actual employer was only the Pondicherry Textiles Corporation, and therefore the liability of the Corporation was to pay the amount, the judge said the property shall be auctioned for payment.
The government will supervise the management and other authorities concerned for early disbursal of the gratuity amount to the erstwhile employees, the judge said.
"Puducherry Textile Corporation should take immediate steps to sell properties in public auction under supervision of the district collector and disburse the gratuity amount through the district collector," the judge said.
Justice Rajendran also closed the contempt proceedings after making it clear that the ex-employees would get their 65 per cent gratuity dues within four weeks.