Immunity Scheme for Defaulting & Inactive Companies

Companies Fresh Start Scheme, 2020 Episode 2

An immunity scheme for defaulting Companies

The MCA has also given a bit of relief spree to the LLPs by making certain necessary changes to the LLP Settlement Scheme, 2020. The idea behind this is to provide a clean slate to all the law-abiding companies, giving them dual benefits in terms of extended time limit to comply with various filling requirements under the Act and a certain level of financial relief with regard to those compliances considering the current global situation where the world, as a whole, is lockdown due to the unprecedented situation created by the Coronavirus (COVID-19) pandemic.

Important Definitions under the Scheme

(1) “Defaulting company”means a company defined under the Companies Act, 2013, and which has made a default in filing of any of the documents, statement, returns, etc. including annual statutory documents (AOC-4 & MGT- 7) on the MCA-21 registry on due time.

(2) “Inactive Company”means a company which has not been carrying on any business or operation, or has not made any significant accounting transaction during the last two financial years, or has not filed financial statements and annual returns during the last two financial years;

WHAT DOES CFSS 2020 INCLUDE?

As per the provisions of the Companies Act, 2013, all companies are required to follow statutory compliances annually. This includes filling of the Annual Return, Financial Statements and all the other necessary forms, documents and statements that are specified, within that particular time frame. Non – compliance of the same results in the imposition of penalties and fines. Often entrepreneurs who set up companies and LLPs for business ventures do not commence operations because of various genuine economic reasons and fail to ensure the regular statutory fillings. This adds up to the number of defaulting companies in the registry of Companies or LLPs. A company that fails to adhere to the compliances is called a defaulting company. This Scheme shall be applicable on any “Defaulting Company” and contains following:

1. For the Defaulting Companies:

Shall pay only the normal fees as prescribed by the Companies (Registration Offices and Fee) Rules, 2014 for all filings with the MCA 21 registry. No additional fees to be paid, whatsoever.

Immunity against prosecution and proceedings for imposing penalty to be provided only where:

– The prosecution and proceedings arose due to the delay in filing of belated documents

– No other cases covered.

In case there is an existing appeal filed by the company against any notice, complaint or order issued by a court or an adjudicating authority under the Act, with regard to prosecution and proceedings related to the delay in statutory filing, the following steps are to be followed:

– Before registering under the CFSS 2020, the appeal filed by the company should be withdrawn.

– At the time of making the application for the scheme, the company must furnish a copy of such withdrawal along with the application as proof.

Where the order has been passed by the court and the company has not filed an appeal against the same as on the commencement of the scheme:

– The company is allowed 120 days to file an appeal before the Regional Director

– During this period of 120 days, for the non – compliance of the order passed by the court with regard to the delay in filing of any documents for the same shall be condoned and no further action shall be initiated against the company.

• The defaulting company shall file their overdue documents/returns/other statements as well as statutory Annual Filing documents such as Financial Statements and Annual Returns in respective prescribed e-Forms by paying the normal statutory filing fee without any additional fee as payable as per section 403 of the Act read with Companies (Registration Offices and fee) Rules, 2014 within due immunity period.

The Defaulting Companies shall file the Form CFSS-2020 after making all default good.

The application for seeking immunity may be made electronically in Form CFSS – 2020 after closure of the scheme and after the documents have been taken on file or on record or approved by the Designated Authority as the case may be. The Form CFSS-2020 is entirely self-declaration-based form.

– The Form provides the companies with immunity for a period of 6 months after the date of closure of the CFSS 2020

– No fees to be paid on this particular form.

– Immunity Certificate shall be granted by the designated authority.

Immunity is not granted where:

–An appeal is pending in court against the company

–In case of management disputes pending before any court of law.

Please visit:- www.boardhr.blogspot.com

Companies Fresh Start Scheme, 2020 - Episode 1

Companies Fresh Start Scheme - 2020 Episode 1

An introduction to the amnesty scheme to immune default and inactive companies 

Visual Analysis on GST Registration - 1

Visual Analysis on GST Registration - 1

The registration requirements have undergone various changes since the inception of the Goods and Services Tax on 1st July, 2017. There are numerous amendments and also notifications and circulars issued in this regards. 

The requirement aspects of GST Registration are covered by sections from 22 to 24 of the Central Goods and Services Tax Act, 2017 and also the respective State Goods and Services Tax Acts, 2017. These sections provide for the liability for registration and also exemptions available from registration under the Goods and Services Tax regulations.

Section 22 : Person Liable for registration

Section 22(1):- Registration based on Turnover Threshold

A supplier who makes taxable supply of goods or services shall get registered from a state or union territory from where he makes taxable supply if his aggregate turnover, in a financial year, exceeds –

– Rs. 20 lakhs

– Rs. 10 lakhs (for Special Category States viz. Manipur,Mizoram, Nagaland, Tripura)

To be continue...

वरिष्ठ श्रमिक नेता ने की आत्महत्या

श्रमिक नेता दादा सामंत आत्महत्या कर ली

वरिष्ठ श्रमिक नेता दादा सामंत ने यहां उपनगरीय इलाके बोरिवली में फांसी लगाकर कथित रूप से आत्महत्या कर ली। वह 92 साल के थे। वह संभवत: कोविड-19 की स्थिति और निजी स्वास्थ्य को लेकर व्यथित थे। एक पुलिस अधिकारी ने शनिवार ने बताया कि महाराष्ट्र जनरल कामगार यूनियन के नेता को शुक्रवार सुबह को अपनी बड़ी बेटी के घर फांसी से लटका पाया गया। वह प्रमुख श्रमिक नेता दत्ता सामंत के भाई थे जिनकी 1997 में गैंगस्टर ने गोली मारकर हत्या कर दी थी। आत्महत्या की वजह के बारे में पूछे जाने पर दहीसार थाने के एक अधिकारी ने बताया कि उन्हें मौके से दादा सामंत का एक सुसाइड नोट मिला है जिसमें उन्होंने लिखा है कि वह कोविड-19 की स्थिति और निजी स्वास्थ्य मुद्दों से आजिज आ गये थे।
दत्ता सामंत ने लगभग १५ वर्ष मुंबई के श्रम शक्ति का नेतृत्व किया . वे अपनी आक्रामक शैली के लिये जाने जाते थे . उन्होने कई बहुराष्ट्रीय कंपनीयो के श्रमिको को अभूतपूर्व वेतनवृध्दी तथा बोनस दिलवाये किन्तु जब ऐतिहासिक कपडा मिल हडताल आरंभ हुई तो यह तिलिस्म बिखर गया .
यह सचमुच शोध का विषय है कि डाॅ.सामंत की वजह से श्रमिको को लाभ हुआ या हानी ?
कपडा मिलो की हडताल ने भिवंडी , इचलकरंजी जैसे कस्बो को नई राह खोल दी . कम्पोझिट मिल का काम पावरलूम और प्रोसेसिंग हाउस करने लगे अर्थात कम्पोझिट मिल्स की उपादेयता समाप्त हो गई नये उद्योग मुंबई मे लगना बंद हो गये .
डाॅ. सामंत इंदिरा लहर मे भी लोकसभा के लिये चुने गये , उनके तीन प्रतिनिधी विधानसभा मे भी पहुंचे किन्तु उनका पुरा आंदोलन केवल वेतनवृध्दी बोनस केन्द्रित होने से तथा कोई नीति , सिध्दांत से जुडा न होने से समाप्त हो गया . अन्यथा कामरेड श्रीपाद डांगे जैसे कम्यूनिस्ट लीडर को हटाना या जार्ज फर्नांडीस जैसे समाजवादी नेता को हटाना बहुत बडा काम था जो डाॅ दत्ता सामंत ने कर दिखाया पर वह करिश्मा अल्पावधी के लिये रहा . डाॅ. सामंत की हत्या के बाद कामगार आघाडी तथा महाराष्ट्र जनरल कामगार यूनियन के सूत्र बडे भाई दादा सामंत के हाथो मे आ गये लेकिन सैध्दांतिक आधार न होने से यूनियन अपना प्रभुत्व खोती गई . यह पोस्ट लिखने का उद्देश्य केवल यह है कि मित्रो को इतिहास की यह खिडकी खोलकर दिखाई जाये .
कृपया इस पर कुछ कहना चाहते हो तो जरूर कहिये पर आरआयपी या श्रध्दांजली की आवश्यकता नही है

No Work No Pay

No Work No Pay

From this video on topic 'No Work No Pay' I'm starting video service. One by one, shall remove the curtain from all the creative interpretation on 'No Work No Pay.'

This is the introduction video on the principle of 'No Work No Pay' which is now a buzz word in industry due to Ministry of Home Affair order on not to reduce wage of any worker, Contract worker or may be casual worker.

Even not to Terminate & layoffs and in all circumstances worker need to be deemed as on duty.

Due to which employer faced huge burden of payment with having 

From this video on topic 'No Work No Pay' I'm starting video service. One by one, shall remove the curtain from all the creative interpretation on 'No Work No Pay.'

This is the introduction video on the principle of 'No Work No Pay' which is now a buzz word in industry due to Ministry of Home Affair order on not to reduce wage of any worker, Contract worker or may be casual worker.

Even not to Terminate & layoffs and in all circumstances worker need to be deemed as on duty

Due to which employer faced huge burden of payment with having business in running conditions.

New Provisions for claiming of Maternity Benefits under ESIC

Employees' State Insurance (General) (First) Amendment Regulations, 2020

Here is the update on ESI General Regulations, namely- Employees' State Insurance (General) (First) Amendment Regulations, 2020

It inserted Regulations 87A, 88A, 89C & 89D & Amended Form No 17 & 19

By this notifications Insured Woman expecting child or children need to communicate to the department for claiming Maternity Benefit.

In case of miscarriage neither commissioning mother nor embryo carried woman shall be receiving maternity benefits from ESIC

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SHORT NOTE ON THE MINISTRY OF HOME AFFAIRS

SHORT NOTE ON THE MINISTRY OF HOME  AFFAIR 

The Secretary, Ministry of Home Affairs (MHA), Government of India in his capacity as Chairperson, National Executive Committee, and under directions from National Disaster Management Authority (NDMA) has extended lockdown measures till 31.05.2020 vide Order No. 40-3/2020-DM-I(A) dated 17.05.2020. Significantly, through this order, the Government has rescinded prospectively the effect of its previous orders dated 24.03.2020, 29.03.2020, 14.04.2020, 15.04.2020 and 01.05.2020. 

Consequently, the order dated 29.03.2020 which mandated in paragraph (iii) that “all employers be it in the Industry or in the shops and commercial establishments, shall make payment of wages of their workers, at their workplaces, on the due date, without any deduction, for the period their establishments are under closure during the lockdown” As per MHA’s Circular dated 17.05.2020 explicitly stated in the third paragraph that ( very important) “ whereas save as otherwise provided in the guidelines annexed to this order. All orders issued by NEC under Section 10(2)(i) of the Disaster Management Act,2005, shall cease to have effect from 18.05.2020”. Thereby, all circular of the MHA issued prior to 17.05.2020 under the provisions of the Disaster Management Act, 2005 shall be ceased. Hence, it is explicitly implied from the interpretation of the aforesaid circular that the labour laws governing the master and servant relationship or employer-workman relationship as it existed prior to 29.03.2020 would continue to apply. The employers are no longer obliged to pay wages to their employees if they do not present or report for their duties for work after having been called for work. The employers are hereby advised to deal with their employees/workmen as per the terms of employment or contract of employment or as per terms and conditions of the appointment letter or alternately, the condition of their services will be dealt under the applicable relevant State Acts / Central Acts such as Industrial Disputes Act,1947 Industrial Employment (Standing orders) Act,1946 or the certified standing orders , if applicable in any establishment.

The above opinion is based on the latest MHA order dated 17.05.2020.

Credit 

 S K Gupta , Advocate , Supreme Court

Watch our latest view 

To Pay or Not to pay! what to do?

 To Pay or Not to pay! what to do?

Please find the another write up. Which based on new order released by Ministry of Home Affair which lead employers  to hold payment.

(Please Note- since drafting is done via mobile so it may be porn to typo error.)

All employers are being misled and confused  by news & articles which is being published that they don’t have to pay full wages in lockdown as per new notification.

This doesn’t mean that you don’t have to pay at all for entire period of lockdown , it only means from 18th May onwards it may not be compulsory to pay in these unprecedented times .

Following options may be exercised-

·         Upto 17th May need to pay full wages for employees working / not working from home for non-essential services

·         For essential services , if the arrangements were done by employer to attend the workplace , if the worker still doesn’t attend , he may be marked absent or otherwise he needs to be paid wages

·         From 18th May onwards - if there is a policy of work from home and based on the said policy , worker / employee has demonstrated his work by way of timesheet as per the policy , then full Salary needs to be paid

·         If there is an ability to come to workplace due to restrictions lifted but willingness of the employee is not there and doesn’t report to work as called upon , he may be treated as absent  If there is willingness to work but the employee cannot come to work due to inability / red zone / containment or lack of transport , it is now left as a prerogative of the employer to pay wages or not.

Further , most important note to all for Maharashtra notification dated 31st March which says clearly that you need to pay full Wages and subsequently in the order under DM Act dated 17th May for Maharashtra for extending the lockdown from 18th May to 31st May , in the last paragraph it is clearly said that all earlier orders is “aligned” with this order , which also means that full wages to be paid till 31st May for Maharashtra   Likewise any other state issuing order under DM act state rules will be applicable

My new YouTube video series Episode 1 of No Work No Pay

#Askyourquestions - PF relief under Atmanirbhar Bharat Abhiyan Yojana

PF relief under Atmanirbhar Bharat Abhiyan Yojana

#AskYourQuestion

Kindly subscribe & share Watch till end for some facts

Revised definition of MSMEs for Atma-nirbhar Bharat Abhiyan

Revised definition of MSMEs for Atma-nirbhar Bharat Abhiyan

Introduction

A robust MSME sector is key to improving the economic strength and resilience of the country and making it highly self-reliant and globally competitive. After our Prime Minister sent messages to the Nation on 'Atma-nirbhar Bharat Abhiyan', our Finance Minister had announced  announcing the first tranche of measures under the Atma Nirbhar Bharat stimulus package. In which, the definition of Micro, Small & Medium Enterprises (MSMEs) is revised with the expectation to give them the confidence to grow

Highlight of the new definition :- 

• The distinction between manufacturing and services enterprises has been eliminated. 
• The investment criteria for enterprises have been revised upwards, while an additional criterion of turnover has been introduced.
• The manufacturing and services enterprises with investments up to Rs 1 crore and turnover up to Rs 5 crore will be classified as micro enterprises. 
• The small enterprises, the investment criteria has been revised upwards to Rs 10 crore, with the turnover criteria of Rs 50 crore added to the mix. 
• The enterprises with investment up to Rs 20 crore and turnover up to Rs 100 crore will be termed medium enterprises.

Why it as required?

MSME's, who were performed great, was always in fear that, if they outgrow the size of what is defined as an MSME, they may lose the benefits that they get as an MSME itself. Outgrowing this definition meant outgrowing and going out of receiving benefits. Therefore MSMEs preferred to remain within the definition rather than grow. With this revision now Government & Industries both can easily identify business category & Govt. can look GST data base to identify by turnover only. 

Impact 

Now, coming with a change in the definition of MSMEs, they need not worry about growing in size; they will still be able to get quite a lot of benefits which otherwise, as an MSME, they have got. 

This revision in the definition of MSMEs with an upward revision in their investment limit will help in the seamless expansion of small and medium businesses in the country. The upward revision in the investment limit of MSMEs will help bring an increased number of MSME units access to institutional working capital

Punjab Labour Welfare Fund Act (Haryana), 1965

Punjab Labour Welfare Fund Act (Haryana), 1965

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Section 1: Short title, extent and commencement

(1) This Act may be called the Punjab Labour Welfare Fund Act, 1965.
(2) It extends to the territories which, immediately before the 1st day of November, 1966, were comprised in the State of Punjab, excluding the territory transferred to the Union territory of Himachal Pradesh under Section 5 of the Punjab reorganisation Act, 1966 (31 of 1966).
(3) It shall come into force on the first day of July, 1965.

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Section 2: Definitions

In this Act, unless the context otherwise requires.--
(1) "Board" means the Labour Welfare Board established and constitute under Section 4 for each of the State of Punjab and Haryana and the Union territory of Chandigarh;
(2) employee means any person employed directly by, or through any agency (including a contractor) with or without the knowledge of the principal employer, for remuneration in any factory or establishment to do any work connected with its affairs;
(3) employer means any person who is employs, either directly or through another person on behalf of himself or any other person, one or more employees in an establishment, and includes.--
(i) in a factory, any person named under clause (f) of sub-section (1) of Section 7 of the Factories Act, 1948, as the manager;
(ii) in any establishment, other than a factory, any person responsible to the owner of the establishment for the supervision and control of employees or for the payment of wages;
(4) establishment means a factory and includes any premises including the precincts thereof wherein and in any part of which any industry within the meaning of clause (j) of Section 2 of the Industrial Disputes Act, 1947 (Act 14 of 1947) is carried on and also includes a shop or commercial establishment within the meaning of the Punjab Shops and Commercial Establishments Act, 1958 (Punjab Act 15 of 1958), in which, on any day, ten or more employees are employed or were employed during the preceding twelve months.
(5) factory means a factory means a factory as defined in clause (m) of section 2 of the Factories Act, 1948, or any place which is deemed to be a factory under sub-section (2) of section 85 of that Act;
(6) Funds means the Labour Welfare Fund constituted under section 3 for each of the State of Punjab & Haryana and the Union Territory of Chandigarh.
(7) independent member means a member of the Board who is not connected with the management of any establishment or who is not an employee;
(8) Inspector means an Inspector appointed under section 15;
(9) prescribed means prescribed by rules made under this Act;
(10) unpaid accumulations means all payments due to the employees but not made to them within a period of two years from the date on which they become due, whether before or after the commencement of this Act, including the wages, bonus and gratuity legally payable, but not including the amount of contribution, if any, paid by an employer to a provident fund established under the Employees Provident Fund Act, 1952;
(11) wages means wages as defined in clause (6) of section 2 of the Payment of Wages Act, 1936;
(12) Welfare Commissioner means the Welfare Commissioner appointed under section 14.

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Section 3: Welfare Fund

(1) The State Government shall constitute a Fund called the Labour Welfare fund and, notwithstanding anything contained in any other law for the time being in force or in any contract or instrument, all unpaid accumulations shall be paid to the Board which shall keep a separate account therefore until claims thereto have been decided in the manner provided in section 9, and the other sums specified in sub-section (2) shall be paid into the fund.
(2) The fund shall consist of--
(a) all fines realised from the employees;
(b) unpaid accumulations transferred to the Fund under Section 9;
(c) grants and subsidies to the Board made by the State Government;
(d) all voluntary donations;
(e) any fund transferred under sub-section (5) of section 10;
(f) any sum borrowed under section 11 and
(g) any contribution of employers and employees
(3) the sums specified in sub-section (2) shall be collected by such agencies and in such manner and the accounts of the fund shall be maintained and audited in such manner as may be prescribed.
(4) The employer shall be required to pay interest at the rate of twelve per cent per annum on the amount of unpaid accumulations in case he fails to deposit the same within a period of one year from the prescribed date. The rate of interest thereafter shall be twenty per cent per annum;
(5) An employer who has already incurred the liability of payment of fine at the rate of twenty five per cent at the time of commencement of the Punjab labour Welfare Fund (Haryana Amendment) Act, 1988, shall be liable to pay interest at the rate of twenty per cent per annum from the date of commencement or from the expiry of two years from the date of incurring the liability of payment of fine, whichever is later.

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Section 4: Establishment of Board

(1) For purpose of administering the Fund and for performing such other functions as are assigned to it by or under this act, the State Government shall by notification establish a Board to be known as 'the Punjab Labour Welfare Board for Punjab or Haryana or the territory of Chandigarh" as the case may be.
(2) The Board shall be a body corporate with the name aforesaid, having prepared succession and a common seal with power, subject to the provisions of this act to acquire, hold or dispose of property, and to contract, and may be that name sue or be sued.
(3) The Board shall consist of the following members, including the Chairman, to be nominated by the State Government, namely:-
(a) such equal number of representatives of employers and employees as may be prescribed; and
(b) such number of independent members, whether official, non-official or both, as may be prescribed.
(4) No person shall be nominated as a member of the Board who--
(a) is a salaried official of the Board; or
(b) has been adjudged as an insolvent; or
(c) is of unsound mind and stands so declared by a competent court or is, in the opinion of the State Government, physically or mentally unfit to be appointed as a member; or
(d) has been convicted of an offence which, in the opinion of the State Government, involves moral turpitude.

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Section 5: Powers of the State Government to remove members from office in certain cases

The State Government may remove from office the Chairman or any member of the Board who--
(a) absents himself from three consecutive meetings of the Board without permission of the Chairman of the Board in the case of a member and of the State Government in the case of the Chairman;
(b) is or has become subject to nay of the disqualifications mentioned in sub-section (4) of Section 4;
(c) so abuses his position so to render his continuance in office detrimental to the public interest.

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Section 6: Vacancies, etc., not to invalidate proceedings of Board

No act done, or proceeding taken, under this Act by the Board shall be invalid merely on the ground--
(a) of any vacancy or defect in the constitution of the Board; or
(b) of any defect or irregularity in the nomination of a person acting as a member thereof; or
(c) of any defect or irregularity in such act or proceedings, not affecting the merits of the case.

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Section 7: Term of office, casual vacancies and resignation

The term of office of a member of the Board shall be three years commencing on the date on which his nomination is notified in the official Gazette:
Provided that a member nominated to fill a casual vacancy shall hold office for the unexpired portion of the term of office of the member in whose place the former is nominated.
(2) A member of the Board, including the Chairman thereof, may resign his office by notifying in writing his intention to do so to the state Government, and no such resignation being accepted by the State Government, he shall be deemed to have vacated his office.
(3) If a vacancy arises in the office of the Chairman, or a member of the Board whether by death, resignation, removal or otherwise, the vacancy shall be filled up by the State Government in accordance with the provisions of section 4.

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Section 8: Procedure at the meeting of the Board

(1) The Chairman, and in his absence, a member of the Board nominated by the State government shall preside at a meeting of the Board.
(2) All questions at a meeting of the Board shall be decided by a majority of the members of the Board present and voting:
Provided that in the case of an equality of votes, the Chairman or the person presiding, as the case may be, shall, in addition to his vote as a member have a second or casting vote.
(3) The quorum at a meeting of the Board and the manner in which the business of the Board shall be conducted shall be such as may be prescribed.

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Section 9: Unpaid accumulations and claims thereto

(1) All unpaid accumulations shall be deemed to be abandoned property.
(2) Any unpaid accumulations paid to the Board in accordance with the provisions of section 3 shall, in such payment, discharge an employee of the liability to make payment to an employee in respect thereof but to the extent only of the amount paid to the Board, and the liability to make payment to the employee to the extent aforesaid shall, subject to the succeeding provisions of this section, be deemed to be transferred to the Board.
(3) As soon as possible after the payment of any unpaid accumulations is made to the Board, the Board shall, by notice (containing such particulars as may be prescribed)--
(a) exhibited on the notice board of the establishment in which the unpaid accumulations was earned;
(b) published in the Official Gazette and also in any two newspapers in both the regional languages of the State having large circulation in the area in which the establishment is situated or in such other manner as may be prescribed, regard being had to the amount of the claim; invite claims by employees for any payment due to them. The notice shall be inserted in the manner aforesaid in December of every year, for a period of two years from the date of payment of the unpaid accumulations to the Board.
(4) If any question arises whether the notice referred to in sub-section (3) was given as required by that sub-section a certificate of the Board that it was so given, shall be conclusive.
(5) If a claim is received, whether in answer to the notice or otherwise within a period of four years from the date of first publication of the notice in respect of such claim.--
(a) where the amount of claim so received is equal to the amount deposited by the management with the Board, the amount of the claim shall be paid by the Board to the employee concerned; and
(b) in any other case, the Board shall transfer such claim to the Authority appointed under section 15 of the Payment of Wages Act, 1936, having jurisdiction in the area in which the establishment is or has been situated and the Authority shall proceed to adjudicate upon, and decide, such claim. In hearing such claim the Authority shall have the powers conferred by, and follow the procedure (in so far as it is applicable) followed in giving effect to the provisions of that Act.
6. If the Authority aforesaid is satisfied that any such claim is valid so that the right to receive payment is established, it shall decide that the unpaid accumulations in relation to which the claim is made shall cease to be deemed to be abandoned property, and shall order the Board to pay the whole of the dues claimed, or such part thereof as the Authority decides are properly due, to the employee and the Board shall make payment accordingly:
Provided that the Board shall not be liable to pay any sum in excess of that paid under sub-section (1) of section 3 to the Board as unpaid accumulations in respect of the claim.
(7) If a claim for payment is refused, the employee shall have a right of appeal to the Court of district Judge and Board shall comply with any order made in appeal. An appeal shall lie within sixty days of the decision of the Authority.
(8) The decision of the Authority, subject to the appeal aforesaid, and the decision in appeal shall be final and conclusive as to the right to receive payment, the liability of the Board to pay and also as to the amount, if any.
(9) If no claim is made within the time specified in sub-section (5) or a claim has been duly refused as aforesaid by the Authority or on appeal by the Court, then the unpaid accumulations in respect of such claim shall accrue to, and vest in, the State as boan vacantia, and shall thereafter, without further assurance, be deemed to be transferred to, and form part of, the Fund.

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Section 9-A: Contribution to fund by employers and employees

(1) Every employee shall contribute ten rupees per month to the Fund and every employer shall in respect of each such employee contribute twenty rupees per month in the fund.

Explanation:- For the purpose of sub-section (1) "employer" means an employee on the register of an establishment on the last working day of the month

(2)Every employer shall pay to the Fund, both his contribution and the contribution of the employees before the 31st December of every year by crossed cheque or demand draft in favour of the Welfare Commissioner.

(3) The employer shall be entitled to recover from the employee the employees contribution by deduction from his wages and not otherwise

Provided that no such deduction shall be made in excess of the amount of contribution payable by such employee:

Provided further that if through inadvertence or on account of any other reason, no such deduction has been made from the wages of an employee for any month, such deduction can be made from the wages of such employee in subsequent months after intimation in writing to the employee and the inspector.

Provided further that it shall be no excuse for the employer for non-payment of contribution to the fund that he had not deducted the contribution of the employee from his wages.

(4) Any employer who fails to pay the contribution amount within a period of one month from the date specified under sub-section (2), shall be liable to pay interest at the rate of twelve percent per annum from the said date until such time the amount is actually deposited with the Welfare Commissioner.

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Section 10: Vesting and application of fund

(1) The Fund shall vest in, and be held and applied by, the Board as trustees subject to the provisions and for the purposes of this act, the moneys therein shall be utilized by the Board to defray the cost of carrying out measures which may be specified by the State government from time to time to promote the welfare of the labour and of their dependants.
(2) Without prejudice to the generality of sub-section (1), the money in the Fund may be utilized by the Board to defray expenditure on the following:-
(a) community and social education centres including reading rooms and libraries;
(b) community necessities;
(c) games and sports;
(d) excursions, tours and holiday homes;
(e) entertainment and other forms of recreation;
(f) home industries and subsidiary occupations for women and unemployed persons;
(g) corporate activities of a social nature;
(h) cost of administering this Act including the allowances, if any, payable to the Chairman and members of the Board and the salaries and allowances of the staff appointed for the purposes of this Act; and
(i) such other objects as would in the opinion of the State Government improve the standard of living and ameliorate the social conditions of labour:
Provided that the Fund shall not be utilized in financing any measure which the employer is required under any law for the time being in force to carry out:
Provided further that unpaid accumulations and fines shall be paid to the Board and be expended by it under this Act notwithstanding anything contained in the Payment of Wages Act, 1936, or any other law for the time being in force.
(3) The Board may, with the approval of the State Government make a grant of the fund to any local authority or any other body except as employed in aid of any activity for the welfare of labour and of their dependents approved by the State Government.
(4) If any question arises whether any particular expenditure is or is not debitable to the Fund, to the fund, the matter shall be referred to the State Government and decision of the state Government on such reference shall be final.
(5) It shall be lawful for the Board to continue any activity financed from the welfare fund of any establishment if the said fund is duly transferred to the Board.

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Section 11: Power of Board of Borrow

The Board may, with the previous sanction of the State Government, and subject to the provisions of this Act and to such conditions as may be specified in this behalf, borrow any sum required for the purposes of this Act.

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Section 12: Investment of Fund

Where the Fund or any portion thereof cannot be applied for some time for the purposes of this Act, the Board shall invest the same in such manner and in such securities as may be prescribed.

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Section 13: Power of State Government to give directions to the Board

The State Government may give the Board such directions as in its opinion are necessary or expedient in connection with expenditure from the Fund or for carrying out the other purposes of this Act; and it shall be the duty of the Board to comply with such directions.

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Section 14: Appointment and powers of Welfare Commissioner

There shall be a Welfare Commissioner to be appointed by the Board with the previous approval of the State Government who shall be the principal executive officer of the Board.
(2) Notwithstanding anything contained in sub-section (1), the first Welfare Commissioner shall be appointed by the State Government as soon as practicable after the passing of this Act for a period not exceeding five years and on such conditions as the State Government thinks fit.
(3) It shall be the duty of the Welfare Commissioner to ensure that the provisions of this Act and the rules made thereunder are duly carried out and for this purpose he shall have the power to issue such orders not inconsistent with the provisions of this Act and rules made thereunder as he deems fit, including any order authenticating and implementing the decisions taken by the Board under this Act or rules made thereunder.

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Section 15: Appointment of Inspectors

The State Government may appoint Inspectors to inspect records in connection with the sums payable into the Fund.
(2) Any Inspector may--
(a) with such assistance, if any, as he thinks fit, enter at any reasonable time any premises for carrying out the purposes of this Act; and
(b) exercise such other powers as may be prescribed.

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Section 16: Absorption of the existing staff under Labour Commissioner

The Board shall take over and employ such of the existing staff under the control of Labour Commissioner, Punjab, as the State Government may direct and every person so taken over and employed shall be subject to the provisions of this act and rules made thereunder:
Provided that--
(a) during the period of such employment all matters relating to pay, leave, retirement, allowances, pensions, provident fund and other conditions of service of the said staff shall be regulated by the Punjab Civil Service rules or such other rules as may from time to time be made by the State Government; and
(b) every such member of the said staff shall have a right of appeal to the State Government against any order of reduction, dismissal or removal from service, fine or any other punishment:
Provided further that person so taken over may elect within the prescribed period that he desires to be governed by the rules made under this Act in respect of conditions of service of the staff appointed by the Board under this Act, and on his electing to be so governed by the provisions of first proviso shall cease to apply to him.

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Section 17: Appointment of clerical and other staff by Board

The Board shall have power to appoint the necessary clerical and executive staff to carry out and supervise the activities financed from the Fund:
Provided that if any appointment is not agreed to by the majority of the total number of members of Board, the appointment shall be made by the State Government:
Provided further that the expenses of the staff thus appointed and other administrative expenses shall into exceed a prescribed percentage of the annual income of the Fund.

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Section 18: Power of State government to remove any person on staff of Board

The State Government shall have the power to remove any person whom it may deem unsuitable from the service of the Board.

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Section 19: Power of State Government or Authorised Officer to call for records, etc.

The State Government or any officer authorised by the State Government in this behalf may call for records of any proceedings which are pending before, or have been disposed of by, the Board for purpose of satisfying itself or himself, as the case may be, as to the legality of such proceedings or of any order made therein and may pass such orders in relation thereto as the State Government or such officer may think fit.
Provided that no order adversely affecting any person shall be made under this section without giving such person a reasonable opportunity of being heard.

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Section 20: Mode of recovery of sums payable into Fund, etc.

Any such sums payable into the Fund under this Act, shall, without prejudice to any other mode of recovery, be recoverable on behalf of the Board as arrears of land revenue.

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Section 21: Supersession of Board

(1) If the State government is satisfied that the Board has made default in performing any duties imposed on it by or under this Act or has abused its power, the State Government may by notification supersede and reconstitute the Board in the prescribed manner:
Provided that before issuing such notification, the State Government shall give a reasonable opportunity to the Board to show cause why it should not be superseded and shall consider the explanation and objection, if any, of the Board.
(2) After the supersession of the Board and until it is reconstituted, the powers, duties and functions of the Board shall be exercised or performed by such officers as the State Government may appoint for this purpose.

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Section 22: Members of the Board, Welfare Commissioner, Inspectors and all officers and servants of Board to be public servants

The members of the Board, including the Chairman thereof, the Welfare Commissioner, Inspectors and all officers and servants of Board, shall be deemed to be public servants within the meaning of Section 21 of the Indian Penal Code.

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Section 23: Delegation

The Board may, by resolution passed by it at a meeting of the Board, direct that any power or duty which by this Act or by any rule made under this Act is conferred or imposed upon the Board shall, in such circumstances and under such conditions, if any, as may be specified in the direction, be exercised or discharged also by the Welfare Commissioner.

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Section 24: Protection of persons acting in good faith

No suit, prosecution or other legal proceeding shall lie against any person for any thing which is good faith done or intended to be done under this Act.

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Section 25: Exemptions

The State Government may by notification and in public interest exempt any class of establishments from all or any of the provisions of this Act subject to such conditions, if any, as may be specified in the notification.

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Section 26: Omitted: Application of Act to certain establishments of Central and State Government

Omitted

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Section 26A: Penalty

Save as otherwise provided, any person, who contravenes any of the provisions of this Act or any rule made thereunder or who wilfully obstructs an Inspector in the exercise of his powers or discharge of his duties under this Act or any rule made thereunder or fails to produce for inspection on demand by an Inspector any registers records or other documents maintained in pursuance of the provisions of this Act or the rules made thereunder or to supply to him on demand true copies of any such document, shall, on conviction, be punished--
(a) for the first offence, with fine which may extend to five thousand rupees but not less than two thousand rupees; and
(b) for a second or subsequent offences, with imprisonment for a term which may extend to three months, or with fine which may extend to ten thousand rupees but not less than three thousand rupees or with both.

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Section 26B: Cognizance of offences

(1) No court inferior to that of a Judicial Magistrate of the 1st Class shall try any offence punishable under this Act.
(2) No Court shall take cognizance of any such offence except on a complaint made by the Inspector.

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Section 27: Power to make rules

(1) The State Government may, by notification and subject to the condition of previous publication, make rules to carry out the purposes of this Act.
(2) In particular, and without prejudice to the generality of the foregoing power, such rules may be made for all or any of the following matter, namely:-
(a) the agency for and the manner of collection of sums specified in sub-section (3) of section 3; and the period within which the same shall be paid to the credit of the Fund;
(b) the manner in which the accounts of the Fund shall be maintained and audited under sub-section (3) of section 3;
(c) the number of representatives of employers, employees and independent members of the Board and the allowances, if any, payable to the Chairman and members thereof;
(d) the quorum at meetings of the Board and the manner in which it shall conduct its business;
(e) the particulars which shall be contained in the notice referred to in sub-section (3) of section 9, and the other manner of publication of such notice;
(f) the procedure for making grants from the Fund under sub-section 3 of section 10 and the securities in which the fund may be invested and the manner of investment;
(g) the procedure for defraying the expenditure incurred in administering the Fund;
(h) the duties and powers of Inspectors and the conditions of service of the Welfare Commissioner and Inspectors and other staff appointed under this Act;
(i) the percentage of the annual income of the fund beyond which the Board may not spend on the staff and other administrative measures;
(j) the registers and records to be maintained under this Act and the form and manner in which they shall be maintained;
(k) the publication of the report of activities financed from the Fund together with statement of receipts and expenditures of the fund and statement of accounts; and
(l) any other matter which is to be or may be prescribed.
(3) Every rule made under this section shall be laid as soon as may be after it is made before the State Legislature while it is in session for a total period of ten days which may be comprised in one session or in two successive sessions, and if before the expiry of the session in which it is so laid or the session immediately following, the Legislature, agree in making any modification in the rule or the Legislature, agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be, so however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule.

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The Haryana Payment of Gratuity Rules, 1972

The Haryana Payment of Gratuity Rules, 1972

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Rule 1: Short title and commencement

(1) These rules may be called the Payment of Gratuity (Haryana) Rules, 1973.

(2) The rules shall come into force on the date of their first publication in Punjab government Gazette, (i.e., 24th May, 1973).

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Rule 2: Definitions

(In these rules, unless there is anything repugnant in the subject or context,
(a) "Act" means the Payment of Gratuity Act, 1972;
[Act 39--received the assent of the President on 21st August, 1972 and came into force with effect from 16th September, 1972].
(b) " Appellate Authority " means the authority the Government or the authority specified by Punjab Government under sub-section (7) of section 7;
[for appellate authority--see notifications at the end]
(c) "Form " means a form appended to these rules;
(d) " nomination" means a nomination made under section 6;
[See rule 6 and Form 'F' and 'G']
(e) "section' means a section of the Act.

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Rule 3: Notice of opening, change or closure of the establishment

(1) Within thirty days of the rules becoming applicable to an establishment, a notice in Form 'A' shall be submitted by the employer to the controlling authority of the area.
(2) A notice in form 'B' shall be submitted by the employer to the controlling authority of the area within thirty days of any change in the name, address, of employer or nature of business.
(3) Where an employer intends to close down the business, he shall submit a notice in Form 'C' to the controlling authority of the area at least sixty days before the intended closure.

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Rule 4: Display of Notice

(1) The employer shall display conspicuously a notice at or near the main entrance of the establishment in bold letters in Punjabi and in a language understood by at least one third of the employees specifying the name of the officer with designation authorised by the employer to receive on his behalf notices under the Act or the rules.
(2) A fresh notice shall be displayed immediately after the notice referred to in sub-rule (1) becomes illegible or requires a change.

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Rule 5: Form of notice under proviso to section 2 (h)(ii)

(1) A notice under the proviso to sub-clause (ii) of clause (h) of section 2 shall be in Form 'D' and sent in triplicate by the employee to the employer, who shall, after recording its receipt on one copy thereof, return the copy to the employee and send the second copy to the controlling authority of the area.
(2) An employee may withdraw the notice referred to in sub-rule (1) by giving another notice in triplicate in Form 'E' to the employer, who shall follow the same procedure as in sub-rule (1).

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Rule 6: Nominations

(1) a nomination shall be in Form 'F' and submitted in duplicate by personal service by the employee, after taking proper receipt or by sending through registered post acknowledgement due to the employer,(
(i) in the case of an employee who is already in employment for a year or more on the date of commencement of these rules, ordinarily, within ninety days from such date, and
(ii) in the case of an employee who completes one year of service after the date of commencement of these rules, ordinarily, within thirty days of the completion of one year of service:
Provided that nomination in Form 'F' shall be accepted by the employer after the specified period, if filed with reasonable ground for delay, and no nomination so accepted shall be invalid merely because it was filed after the specified period.
(2) Within thirty days of the receipt of a nomination in Form 'F' under sub-rule (1), the employer shall get the service particulars of the employee, as mentioned in the Form of nomination, verified with reference to the records of the establishment and return to the employee, after obtaining a receipt thereof, the duplicate copy of the nomination in Form 'F' duly attested either by the employer or an officer authorised in this behalf by him, as a token of recording of the nomination by the employer and the other copy of the nomination shall be recorded.
(3) An employee who has no family at the time of making a nomination shall, within ninety days of acquiring a family, submit in the manner specified in sub-rule (1), a fresh nomination, as required under sub-section (4) of section 6, in duplicate in Form 'G' to the employer, and thereafter the provisions of sub-rule (2) shall apply mutatis mutandis as if it was made under sub-rule(1).
(4) A notice of modification of a nomination, including cases where a nominee predeceases an employee shall be submitted in duplicate in Form 'H' to the employer in the manner specified in sub-rule (1), and thereafter the provisions of sub-rule (2) shall apply mutatis mutandis as if it was made under sub-rule (1).
(5) A nomination or a fresh nomination or a notice of modification of nomination shall be signed by the employee or, if illiterate, shall bear his thumb-impression, in the presence of two witnesses, who shall also sign a declaration to that effect in the nomination, fresh nomination or notice of modification of nomination, as the case may be.
(6) A nomination, fresh nomination or notice of modification of nomination shall take effect from the date of receipt thereof by the employer.

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Rule 7: Application for gratuity

(1) An employee who is eligible for payment of gratuity under the act, or any person authorised, in writing, to act on his behalf, shall apply, ordinarily within thirty days form the date the gratuity became payable, in Form 'I' to the employer:
Provided that where the date of superannuation or retirement or resignation of an employee is known, the employee may apply to the employer before thirty days of the date of superannuation or retirement or resignation, as the case may be.
(2) A nominee of an employee who is eligible for payment of gratuity under the second proviso to sub-section (1) of section 4 shall apply, ordinarily within thirty days from the date the gratuity became payable to him in Form 'J' to the employer:
Provided that an application in plain paper with relevant particulars shall also be accepted. The employer may obtain such other particulars as may be deemed necessary by him.
(3) A legal heir of an employee who is eligible for payment of gratuity under the second proviso to sub-section (1) of section 4 shall apply, ordinarily within one year from the date the gratuity became payable to him, in Form 'K' to the employer.
(4) Where gratuity becomes payable under the Act before the commencement of these rules, the periods of limitations specified in sub-rules (1), (2) and (3) shall be deemed to be operative from the date of such commencement.
(5) An application for payment of gratuity filed after the expiry of the periods specified in this rule shall also be entertained by the employer, if the applicant adduces sufficient cause for the delay in preferring his claim, and no claim for gratuity under the Act shall be invalid merely because the claimant failed to present his application within the specified period. Any dispute in this regard shall be referred to the controlling authority for his decision.
(6) An application under this rule shall be presented to the employer either by personal service or by registered post acknowledgement due.

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Rule 8: Notice for payment of gratuity

(1) Within fifteen days of the receipt of an application under rule 7 for payment of gratuity, the employer shall--
(i) if the claim is found admissible on verification, issue a notice in Form 'L' to the applicant employee, nominee or legal heir, as the case may be, specifying the amount of gratuity payable and fixing a date, not being later than the thirtieth day after the date of receipt of the application, for payment thereof, or
(ii) if the claim for gratuity is not found admissible, issue a notice in Form 'M' to the applicant employee, nominee or legal heir, as the case may be, specifying the reasons why the claim for gratuity is not considered admissible.
In either case copy of the notice shall be endorsed to the controlling authority.
(2) In case payment of gratuity is due to be made in the employer's office, the date fixed for the purpose in the notice in Form 'L' under clause (i) of sub-rule (1) shall be re-fixed by the employer, if a written application in this behalf is made by the payee explaining why it is not possible for him to be present in person on the date specified.
(3) If the claimant for gratuity is a nominee or a legal heir, the employer may ask for such witness or evidence as may be deemed relevant for establishing his identity or maintainability of his claim, as the case may be. In that case the time-limit specified for issuance of notices under sub-rule (1) shall be operative with effect from the date such witness or evidence, as the case may be, called for by the employer is furnished to the employer.
(4) A notice in Form 'L' or Form 'M' shall be served on the applicant either by personal service after taking receipt or by registered post with acknowledgement due.
(5) A notice under sub-section (2) of section 7 shall be in Form 'L'.

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Rule 9: Mode of payment of gratuity

The gratuity payable under the Act shall be paid in cash or, if so desired by the payee, in demand draft or bank cheque to the eligible employee, nominee or legal heir, as the case may be:
Provided that in case the eligible employee, nominee or legal heir, as the case may be, so desires and the amount of gratuity payable is less than one thousand rupees, payment may be made by postal money order after deducting the postal money order commission therefore form the amount payable:
Provided further that intimation about the details of payment shall also be given by the employer to the controlling authority of the area.

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Rule 10: Application to controlling authority for direction

(1) If an employer
(i) refuses to accept a nomination or to entertain an application sought to be filed under rule 7, or
(ii) issues a notice under sub-rule (1) of rule 8 either specifying an amount of gratuity which is considered by the applicant less than what is payable or rejecting eligibility to payment of gratuity, or
(iii) having received an application under rule 7 fails to issue any notice as required under rule 8 within the time specified therein the claimant employee, nominee or legal heir, as the case may be, may, within ninety days of the occurrence of the cause for the application, apply in Form 'N' to the controlling authority for issuing a direction under sub-section (4) of section 7 with as many extra copies as there are opposite parties:
Provided that the controlling authority may accept any application under this sub-rule, on sufficient cause being shown by the applicant, after the expiry of the specified period.
(2) Application under sub-rule (1) and other documents relevant to such an application shall be presented in person to the controlling authority or shall be sent by registered post acknowledgement due.

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Rule 11: Procedure for dealing with application for direction

(1) On receipt of an application under rule 10 the controlling authority shall, by issuing a notice in Form 'O', call upon the applicant as well as the employer to appear before him on a specified date, time and place, either by himself or through his authorised representative together with all relevant documents and witnesses, if any.
(2) Any person desiring to act on behalf of an employer or employee, nominee or legal heir, as the case may be, shall present to the controlling authority a letter of authority from the employer or the person concerned, as the case may be, on whose behalf he seeks to act together with a written statement explaining his interest in the matter and praying for permission so to act. the controlling authority shall record thereon an order either according his approval or specifying, in the case of refusal to grant the permission prayed for, the reasons for the refusal.
Provided that where an employee wants himself to be represented by the president or secretary or any principal officer of the trade union, the controlling authority shall grant the necessary permission.
(3) A party appearing by an authorised representative shall be bound by the acts of the representative.
(4) After completion of hearing on the date fixed under sub-rule (1), or after such further evidence, examination of documents, witnesses, hearing and enquiry, as may be deemed necessary, the controlling authority shall record his findings as to whether any amount is payable to the applicant under the Act. A copy of the finding shall be given to each of the parties.
(5) If the employer concerned fails to appear on the specified date of hearing after due service of notice without sufficient cause, the controlling authority may proceed to hear and determine the application ex-parte. If the applicant fails to appear on the specified date of hearing without sufficient cause, the controlling authority any dismiss the application:
Provided that an order under this sub-rule may, on good cause being shown within thirty days of the said order, be reviewed and the application re-heard after giving not less than fourteen days' notice to the opposite party of the date fixed for re-hearing of the application.

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Rule 12: Place and time of hearing

The sittings of the controlling authority shall be held at such times and at such places as he may fix and he shall inform the parties of the same in such manner as he thinks fit.

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Rule 13: Administration of oath

The controlling authority may authorise a clerk of his office to administer oaths for the purpose of making affidavits.

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Rule 14: Summoning and attendance of witnesses

The controlling authority may, at any stage of the proceedings before him, either upon or without an application by any of the parties involved in the proceedings before him, and on such terms as may appear to the controlling authority just, issue summons to any person in Form 'P' either to give evidence or to produce documents or for both purposes on a specified date, time and place.

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Rule 15: Service of summons or notice

(1) subject to the provisions of sub-rule (2), any notice, summons, process or order issued by the controlling authority may be served wither personally or by registered post acknowledgement due or in any other manner as prescribed under the Code of Civil Procedure, 1908 (Central: Act 5 of 1908).
(2) Where there are numerous persons as parties to any proceeding before the controlling authority and such persons are members of any trade union or association or are represented by an authorised person, the service of notice on the secretary, or where there is no secretary, on the principal officer of the trade union or association, or on the authorised person shall be deemed to be service on such persons.

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Rule 16: Maintenance of records of cases by the controlling authority

(1) The controlling authority shall record the particulars of each case under section 7, in form 'Q' and at the time of passing orders shall sign and date the particulars so recorded.
(2) the controlling authority shall, while passing orders in each case, also record the findings on the merits of the case and file it together with the memoranda of evidence with the order sheet.
(3) Any record, other than a record of any order or direction, which is required by these rules to be signed by the controlling authority, may be signed on behalf of and under the direction of the controlling authority by any subordinate officer appointed in writing for this purpose by the controlling authority.

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Rule 17: Direction for payment of gratuity

If a finding is recorded under sub-rule (4) of rule 11 that the applicant is entitled to payment of gratuity under the Act, the controlling authority shall issue a notice to the employer concerned in Form R specifying the amount payable and directing payment thereof to the applicant under intimation to the controlling authority within thirty days from the date of receipt of the notice by the employer. A copy of the notice shall be endorsed to the applicant employee, nominee or legal heir, as the case may be.

Note: In exercise of the powers conferred by section 3 of the payment of Gratuity Act, 1972 the Govt. of Haryana has declared all the Labour Officers-cum-Conciliation Officers as the Controlling Authority in their respective areas of jurisdiction for the purpose of the aforesaid Act, vide Notification No.S.O./101/CA38/72/S.3/78, dated 14.7.78.

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Rule 18: Appeal

(1) The memorandum of appeal under sub-section (7) of section 7 of the Act shall be submitted to the appellate authority with a copy thereof to the opposite party and the controlling authority either through delivery in person or under registered post acknowledgement due.
(2) The memorandum of appeal shall contain the facts of the case, the decision of the controlling authority, the grounds of appeal and the relief sought.
(3) There shall be appended to the memorandum of appeal a certified copy of the finding of the controlling authority and direction for payment of gratuity.
(4) On receipt of the copy of memorandum of appeal, the controlling authority shall forward records of the case to the appellate authority.
(5) Within 14 days of the receipt of the copy of the memorandum of appeal, the opposite party shall submit his comments on each paragraph of the memorandum with additional pleas, if any, to the appellate authority with a copy to the appellant.
(6) The appellate authority shall record its decision after giving the parties to the appeal a reasonable opportunity of being heard. A copy of the decision shall be given to the parties to the appeal and a copy thereof shall be sent to the controlling authority returning his records of the case.
(7) The controlling authority shall, on receipt of the decision of the appellate authority shall, on receipt of the decision of the appellate authority, make necessary entry in the records of the case maintained in Form 'Q' under sub-rule (1) of rule 16.
(8) On receipt of the decision of the appellate authority, the controlling authority shall, if required under that decision., modify his direction for payment of gratuity and issue a notice to the employer concerned in Form 'S' specifying the modified amount payable and directing payment thereof to the applicant under intimation to the controlling authority within fifteen days of receipt of the notice by the employer. A copy of the notice shall be endorsed to the applicant employee, nominee or legal heir, as the case may be and to the appellate authority.

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Rule 19: Application for recovery of gratuity

Where an employer fails to pay the gratuity due under the Act in accordance with the notice by the controlling authority under rule 17 or rule 18, as the case may be, the employee concerned, his nominee or legal heir, as the case may be, to whom the gratuity is payable may apply to the controlling authority in duplicate in Form 'T' for recovery thereof under section 8 of the Act.

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Rule 20: Display of abstract of the Act and rules

The employer shall display and abstract of the Act and the rules made thereunder as given in Form 'U' in English and in the language understood by the majority of the employees at a conspicuous place at or near the main entrance of the establishment.