Authority: High Court
Order Date: 17 July 2026
Case Overview
- Petitioners: Steel Workers' Federation of India & Anr., represented by Mr. Rananesh Guha Thakurta and Mr. Rijuan Mandal, filed WPA 11496 of 2022 seeking to set aside SAIL's office order No. PER/PP/4007 dated 26 November 2021 and approval No. S-29026 (96)/2021‑SAIL dated 22 November 2021, alleging that the cut‑off ceiling for gratuity under the Payment of Gratuity Act, 1972 contravenes employee service conditions.
- Respondents: Union of India (Respondent No.1) and Steel Authority of India Limited (SAIL) (Respondent No.2), represented by Senior Advocate Mr. Soumya Majumder and Ms. Sanjukta Dutta. SAIL argued that the dispute pertains to “service matters” as defined in Section 3(q) of the Administrative Tribunals Act, 1985 and therefore falls within the jurisdiction of the Administrative Tribunal, not the High Court. The argument relied on the Supreme Court judgment in L. Chandra Kumar v. Union of India (1997 3 SCC 261).
- The petition sought an injunction against the implementation of the gratuity ceiling, a direction to withdraw the office order, and a prohibition on any further steps by SAIL in respect of the same.
- The Court noted that the Administrative Tribunals Act expressly includes remuneration, pension and other retirement benefits within “service matters” and that the writ sought relief concerning such service conditions. Consequently, the Court held that the High Court lacks jurisdiction to entertain the writ.
Final Outcome
- The writ application is disposed of on the ground of non‑maintainability before the High Court.
- The petitioner is directed to approach the appropriate Administrative Tribunal for relief.
- The interim order, if any, is vacated.
- Parties may obtain a photostat certified copy of the order upon compliance with formalities.
Topics: Gratuity, Administrative Tribunal, Service Law