IN THE HIGH COURT OF BOMBAY AT NAGPUR BENCH
Milind N. Jadhav, J.
Municipal Council, Achalpur - Appellant
Vs.
Jagannath - Respondent
Writ Petition No. 911 of 2017
Decided On : 27-09-2019
Payment of Gratuity - Municipal Council's Challenge to Judgments - Payment of Gratuity Act, 1972 - Summary of Acts and Sections: Section 25-F of the I.D. Act, 1948, Payment of Gratuity Act, 1972, Maharashtra Civil Services Rules, 1982 - The court discussed the entitlement to gratuity, regularization of services, and applicability of the Payment of Gratuity Act, 1972 to employees of the Municipal Council.
Fact of the Case:
The Respondent, initially appointed as a daily wager, was later absorbed by the Petitioner-Municipal Council. The Respondent sought gratuity for the entire length of his service, including the period as a daily wager. The Controlling Authority allowed the application partly, directing payment of gratuity and interest. The Appellate Authority upheld the decision.
Finding of the Court:
The court found that the Payment of Gratuity Act, 1972, applied to the employees of the Municipal Council, and the Respondent was entitled to gratuity for the entire period of service, including the period as a daily wager.
Issues: Entitlement to gratuity, applicability of the Payment of Gratuity Act, 1972, and the effect of regularization of services.
Ratio Decidendi: The court held that the right to receive gratuity under the Payment of Gratuity Act, 1972, cannot be defeated by any instrument or contract. It also emphasized that the Act prevails over other enactments or contracts. The court further ruled that the Respondent was entitled to gratuity for the entire period of service, including the period as a daily wager.
Final Decision: The court upheld the judgments of the Controlling Authority and the Appellate Authority, directing payment of gratuity for the entire period of service, and dismissed the Petitioner's challenge.
JUDGMENT :
Milind N. Jadhav, J.
Heard. Rule. Rule made returnable forthwith. Heard finally by consent of parties.
2. The present Petition has been filed by the Municipal Council, Achalpur, challenging the judgment dated 06.01.2017 in Payment of Gratuity Appeal No. 5/2015, passed by the Appellate Authority under the Payment of Gratuity Act, 1972, Amravati and the judgment dated 26.06.2015 passed in Application PGA No.49/2012 by the Controlling Authority under the Payment of Gratuity Act, Labour Court, Amravati. Both the above concurrent judgments have been impugned in the present Writ Petition.
3. Relevant facts required to be cited for the purpose of deciding the present controversy are as under:
(a) The Respondent was initially appointed by the Petitioner Municipal Council as a daily wager in the department of Family Planning Survey and Low Cost Sanitation Survey with effect from 02.06.1984. There is no dispute that though the Respondent was a daily wager performing services of a Clerk. The services of the Respondent came to be terminated by the Petitioner Municipal Council on 01.07.1985 whereupon Respondent filed ULP No. 1791/1993 before the Labour Court, Amravati. The Labour Court, Amravati by its order dated 28.08.1994 directed the Petitioner Municipal Council to reinstate the Respondent in service with continuity and full back wages on the ground of non-compliance of the provisions of Section 25-F of the I.D. Act, 1948. There were 91 similar daily wagers, who were working with the Petitioner Municipal Council during the then time. Thereafter, pursuant to the decision taken by the State Government, these, 91 daily wagers including the Respondent came to be absorbed by the Petitioner- Municipal Council in terms of order dated 28.09.2002 issued by the Regional Director Municipal Administration and Commissioner, Amravati Division, Amravati. Thus, the Respondent was absorbed on the post of Clerk in Class-III cadre in the pay-scale of Rs. 950/- by the Petitioner-Municipal Council with a condition, that the said post will be abolished on the retirement of such employee or if it becomes vacant for any other reason. Thereafter, by order dated 13.10.2002, the Petitioner counsel absorbed the services of Respondent on the post of Clerk. Respondent thereafter, continued to work for a further period of eight years and one month with the Petitioner-Municipal Council and on attaining the age of superannuation retired from its services on 12.10.2010.
(b) Since the Respondent was paid gratuity for the period of eight years and one month only, being aggrieved, the application being Payment of Gratuity Application No.49/2012, before the Controlling Authority, Labour Court, Amravati on 23.10.2012, under the provisions of Section 4 of the Payment Gratuity Act, 1972, inter alia, seeking direction to the Petitioner to pay Gratuity for the entire length of his service beginning from 02.06.1984.
(c) Thus, the Respondent computed and sought Payment of Gratuity of Rs.1,50,917/- as arrears of gratuity along with the interest @ 18% p.a. from the date of application until date of payment. Before the Controlling Authority, Labour Court, Amravati, the Petitioner submitted that on application of the policy decision of the Government of Maharashtra in terms of order dated 28.09.2002 passed by the Regional Director Municipal Administration, the submission of the Respondent that he had rendered more than 26 years of continuous services was in correct. According to the Petitioner the services of the Respondent were regularized by order dated 13.10.2002 on the specific condition that the Respondent would not be entitled to any financial and retirement related benefits in respect of the services rendered by him as daily wager earlier.
(d) The Controlling Authority framed the following issues and gave its findings:
"In view of the rival pleadings of the parties the
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