SUPREME COURT OF INDIA
A.M. Khanwilkar, Dinesh Maheshwari, JJ.
Dhansai Sahu - Appellant
Versus
State Of Chhattisgarh & Ors. - Respondents
Civil Appeal No............of 2020 (Arising out of SLP (Civil) No. 4790 of 2019)
Decided On : 21-01-2020
Payment of Gratuity Act, 1972 – Section 2(e) – Chhattisgarh Civil Services (Pension) Rules, 1976 – Whether service rendered as daily-wager before being regularized and given status of a regular Government servant, can be reckoned, so as to invoke provisions of Payment of Gratuity Act, 1972 after age of superannuation and retirement as State Government employee – Held, Court would have proceeded to decide matter on construct of relied upon Rules, but as noted above, exposition by coordinate Bench of two Judges of this Court in unreported decision of (supra) will also have to be taken note of and to observe judicial propriety, deem it appropriate to refer issue under consideration to be considered by a larger Bench of three Judges – Accordingly, Registry is directed to place file of the present matter before Honble the Chief Justice for constitution of a larger Bench – Ordered Accordingly.
ORDER
1. Leave granted.
2. The moot question involved in this appeal is: whether the service rendered as daily-wager before being regularized and given the status of a regular Government servant, can be reckoned, so as to invoke the provisions of the Payment of Gratuity Act, 1972 (for short, "the 1972 Act") after the age of superannuation and retirement as State Government employee?
3. The High Court of Chhattisgarh, Bilaspur (for short, "the High Court") relying on the definition of "employee" in Section 2(e) of the 1972 Act, has taken the view that the provisions of the 1972 Act have no application to a person who holds a post under the State Government and is governed by any other Act and in particular, the Chhattisgarh Civil Services (Pension) Rules, 1976 (for short, "the 1976 Rules").
4. The appellant would, however, rely on the recent decision of this Court in Netram Sahu vs. State of Chhattisgarh & Anr., (2018) 5 SCC 430 (two-Judge Bench) dealing with the similar argument by the appellant therein, who was appointed as a daily-wager and after working for 22 years, came to be regularized on work charge establishment but was denied gratuity, because on the day when he attained the age of superannuation, he was holding the post under the State Government. Indeed, the Court was called upon to answer the issue in identical situation, but it is obvious from the observations in paragraph 14 of the reported decision that no provision of either the 1972 Act or the 1976 Rules was brought to the notice of the Court, which would disentitle the appellant therein from claiming the gratuity or for that matter, any provision prohibiting the appellant therein from taking benefit of his long and continuous service period of 22 years which he had rendered prior to being regularised. Notably, this Court had dealt with the judgment of the High Court in the case of Netram Sahu vs. State of Chhattisgarh & Ors. [Decided on 1.8.2014 in Writ Appeal No. 240/2014 (2014 SCC OnLine Chh 159)] , which in turn had relied on the exposition of this Court in the case of Bharat Sanchar Nigam Ltd., Jammu vs. Teja Singh [Decided on 16.1.2009 in Civil Appeal No. 292/2009 (two-Judge Bench)] (unreported decision) and also the principle underlying the exposition in Secretary, State of Karnataka & Ors. vs. Umadevi (3) & Ors., (2006) 4 SCC 1 . However, none of the above decisions has been referred to while answering the issue by this Court in Netram Sahu (supra @ F.N. 1).
5. In the case of Teja Singh (supra), the coordinate Bench of two Judges of this Court considered the claim of a person who was an employee as a daily-rated Mazdoor with a Central Government owned Corporation. He was recruited in the year 1973 and regularized with effect from 11.8.1986 and eventually superannuated on 30.8.1989. This Court was pleased to set aside the relief of gratuity given to that person by the Central Administrative Tribunal and the High Court. In other words, the coordinate Bench of this Court opined that a daily-rated Mazdoor who has been regularized but did not have qualifying service in terms of the service rules for extending retiral benefits to him, would not be entitled for payment of gratuity under the 1972 Act. In other words, the subsequent decision in Netram Sahu (supra @ Footnote No. 1) is in conflict with the said principle stated in the unreported decision of this Court.
6. Reverting back to Section 2(e) of the 1972 Act, the same in no uncertain terms provides that if a person holds a post under the Central Government or a State Government and is governed by any other Act or by any rules providing for payment of gratuity, the provisions of the 1972 Act will have no application. The respondents are relying on the provisions of the 1976 Rules applicable to the post held by the appellant after being regularised on 1.9.2008. The said rules provide for grant of pension and gratuity. "Gratuity" has been defined in Rule 3(i) to include "Service Gratuity" payable under su
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