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2021 Supreme(Kar) 901

IN THE HIGH COURT OF KARNATAKA
Alok Aradhe, J.
MAHADEVAMMA – Appellant
Vs.
ASSISTANT EXECUTIVE ENGINEER – Respondent
W.A. No. 100 of 2013
Decided On : 04-03-2021

Advocates:
Advocate Appeared:
Ashok S. Kinagi.

Headnote:

Gratuity - Employee Entitlement - Payment of Gratuity Act, 1972 - Sec. 4(1), Sec. 2(e) - The court discussed the applicability of the Payment of Gratuity Act, 1972 to an employee of the irrigation department of Government of Karnataka and the entitlement of gratuity for a period of service as a daily wage employee. The court referred to key legal provisions in Sec. 4(1) and Sec. 2(e) of the Act and interpreted the scope of employee entitlement under the Act. The court also considered relevant Supreme Court decisions, including the case of Netram Sahu, to determine the entitlement of gratuity for a daily wage employee whose services have been regularized subsequently.

Fact of the Case:

The widow of a deceased employee filed an application for gratuity under the Payment of Gratuity Act, 1972 after her husband's superannuation. The Controlling Authority directed the appellant to make payment of gratuity, but the order was challenged and quashed by the learned Single Judge.

Finding of the Court:

The court found that the husband of the appellant, initially employed as a daily wage worker, had his services regularized by the State Government. The court held that the husband was entitled to the benefit of gratuity under the Act for the period of service as a daily wage employee, based on the interpretation of relevant legal provisions and precedents.

Issues: The key issue was whether an employee of the irrigation department of Government of Karnataka could claim the benefit of gratuity under the Payment of Gratuity Act, 1972 for the period of service as a daily wage employee.

Ratio Decidendi: The court relied on the interpretation of Sec. 4(1) and Sec. 2(e) of the Act, as well as the Supreme Court decision in Netram Sahu, to establish the entitlement of gratuity for a daily wage employee whose services have been regularized subsequently.

Final Decision: The order passed by the learned Single Judge was quashed, and the order passed by the controlling authority as well as the Appellate Authority under the Act was restored, allowing the appeal.

JUDGMENT :

Alok Aradhe, J.

1. In this intra court appeal under Sec. 4 of the Karnataka High Court Act, 1961 have been filed by the appellant who is the widow of deceased employee against the order dtd. 4/9/2012 passed by the learned Single Judge. In order to appreciate the controversy involved in this appeal, few facts need mention, which are stated hereinafter.

2. The facts in nutshell are that the husband of the appellant was appointed as a heavy mazdoor on daily wage basis in irrigation department of Government of Karnataka. The services of husband of the appellant were regularized on 1/1/1990. The husband of the appellant superannuated on 30/6/2004. After the death of husband of the appellant, she filed an application before the Controlling Authority under the provisions of Payment of Gratuity Act, 1972 (hereinafter referred to as 'the Act' for short). The Controlling Authority by an order dtd. 19/1/2011 inter alia held that the deceased employee was entitled to payment of gratuity under the provisions of the Act and the appellant in this appeal was directed to make payment of Rs.30,471.00 along with interest at the rate of 10% from 31/7/2004. The Controlling Authority calculated the amount of gratuity deducted the amount of death cum retirement gratuity received by the appellant on superannuation of her husband. Being aggrieved by the aforesaid order, the appellant in this appeal filed an appeal before the appellate authority. The Appellate Authority by an order dtd. 14/2/2012 dismissed the appeal. The aforesaid order was challenged by respondent No. 1 herein before the learned Single Judge. The learned Single Judge by an order dtd. 4/9/2012 allowed the writ petition preferred by respondent No. 1 and quashed the orders passed by the controlling authority as well as the appellate authority under the provisions of the Act. In the aforesaid factual background, this appeal has been filed.

3. Learned counsel for the appellant submitted that the learned Single Judge ought to have appreciated that the appellant had made claim for gratuity before the controlling authority under the provisions of the Act with regard to the period for which husband of the appellant had rendered services as daily wage employee. It is further submitted that from perusal of Sec. 3(1)(b) as well as Sec. 2(3) of the Act, it is evident that the Act was applicable to the husband of the petitioner. It is also pointed out that the learned Single Judge ought to have appreciated that the claim of gratuity has been made in respect of a period, which is not covered under any Act or Rules and has been made in respect of the period prior to which the services have been regularized. It is further submitted that the issue involved in this appeal is no longer res integra and is squarely covered by decision of the Supreme Court in STATE OF PUNJAB VS. LABOUR COURT, JULLANDAR and ORS., (1980) 1 SCC 4, NETRAM SAHU VS. STATE OF CHATTISGARH AND ANOTHER, (2018) 5 SCC 430, MUNICIPAL CORPORATION OF DELHI VS. DHARAM PRAKASH SHARMA and ANOTHER, AIR 1999 SC 293.

4. On the other hand, learned counsel for respondent No. 1 has referred to para 12 of the order passed by the learned Single Judge and has submitted that the case of the husband of the appellant is not covered within the definition of the 'employee' as provided under Sec. 2(3) of the Act as the husband of the appellant was an employee of State Government and the provisions of the Act do not apply in case of employees of Central and State Government.

5. Learned Additional Government Advocate for respondent No. 4 has taken us through paragraphs 10, 13 and 20 of the order passed by the learned Single Judge and has supported the order passed by the learned Single Judge.

6. We have considered the submissions made by learned counsel for the parties and have perused the record. The moot question, which arises for consideration in this appeal is whether an employee of the irrigation department of Government of Karnataka can claim the

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