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2025 Supreme(Bom) 838
IN THE HIGH COURT OF JUDICATURE AT BOMBAY, NAGPUR BENCH, NAGPUR.
M.S. JAWALKAR, J.
Suresh S/o Laxmanrao Tikhile - Appellant
Versus
Municipal Council, Achalpur - Respondents
WRIT PETITION NO. 4810 OF 2024 WITH WRIT PETITION NO. 2461 OF 2024, WITH WRIT PETITION NO. 2450 OF 2024 WITH WRIT PETITION NO. 2592 OF 2024 WITH WRIT PETITION NO. 5180 OF 2023 WITH WRIT PETITION NO. 2724 OF 2023 WRIT PETITION NO. 4810 OF 2024
Decided on : 15-04-2025
Mr. U. A. Gosavi, Advocate for Petitioner in WP No.4810/2024.
Ms. Archana Lanjewar, Advocate holding for Mr. N. R. Saboo,
Advocate for Petitioners in WP Nos.2461/2024, 2450/2024 &
2592/2024.
Mr. N. S. Khandewale, Advocate for Petitioner in WP Nos.
5180/2023 & 2724/2023 and for Respondent in WP
Nos.4810/2024, 2461/2024, 2450/2024 & 2592/2024.
Mr. R. D. Wakode, Advocate for Respondent in WP No.
5180/2023.
Mr. R. R. Gaur, Advocate for Respondent in WP No.2724/2023.
The Payment of Gratuity Act applies to Municipal Council employees unless exempted, and limitation does not apply if notice under Section 7(2) is not issued.
Headnote:
(A) Payment of Gratuity Act, 1972 - Sections 4(5) and 14 - Writ petitions challenging orders of Appellate Authority regarding gratuity payments - The Appellate Authority's conclusion that provisions of two Acts cannot apply to one institution was erroneous; the PG Act applies unless exempted by the Government. (Paras 10, 16)
(B) Limitation - The court held that if notice under Section 7(2) of the PG Act is not issued, the limitation period does not begin to run. (Paras 11, 16)
Facts of the case:
The petitioner, a Clerk, retired after 28 years of service and was entitled to gratuity but received less than due. The Controlling Authority ordered payment of the remaining amount, which was overturned by the Appellate Authority.
Findings of Court:
The Appellate Authority's orders were found to be erroneous and without proper consideration of the PG Act.
Issues: The main issues included the applicability of the PG Act to Municipal Council employees and the limitation period for gratuity claims.
Ratio Decidendi: The court ruled that the PG Act applies to Municipal Council employees unless exempted, and the limitation period does not apply if notice is not issued.
Result: Writ petitions allowed; orders of the Appellate Authority quashed.
JUDGMENT :
1. RULE. Rule made returnable forthwith. Heard finally with the consent of the learned Counsel appearing for the parties.
2. Writ Petition No.4810/2024 is filed by the Petitioner challenging the order passed by the Appellate Authority under the Payment of Gratuity Act, 1972 Industrial Court, Amravati dated 07.01.2020 in P.G.A. Appeal No.16/2018 and order dated 05.03.2024 passed in Review Application No.11/2020.
3. Writ Petition No.2461/2024 is filed by the Petitioner challenging the order passed by the Appellate Authority under the Payment of Gratuity Act, 1972 Industrial Court, Amravati dated 05.03.2024 in Review Application No.01/2020 and order dated 07.01.2020 passed in P.G.A. Appeal No.15/2018.
4. Writ Petition No.2450/2024 is filed by the Petitioner challenging the order passed by the Appellate Authority under the Payment of Gratuity Act, 1972 Industrial Court, Amravati dated 05.03.2024 in Review Application No.09/2020 and order dated 07.01.2020 passed in Appeal P.G.A. No.11/2018.
5. Writ Petition No.2592/2024 is filed by the Petitioners challenging the order passed by the Appellate Authority under the Payment of Gratuity Act, 1972 Industrial Court, Amravati dated05.03.2024 in Review Application No.10/2020 and order dated 07.01.2020 passed in Appeal P.G.A. No.17/2018.
6. Writ Petition No.5180/2023 is filed by the Petitioner/ Municipal Council, Achalpur challenging the order passed by the Appellate Authority under the Payment of Gratuity Act, 1972, Amravati dated 13.02.2023 in P.G.A. Appeal No.04/2022 and also Judgment and order dated 11.01.2022, passed by the learned Controlling Authority, Labour Court, Amravati passed in Application PGA No.15/2016.
7. Writ Petition No.2724/2023 is filed by the Petitioner/ Municipal Council, Achalpur challenging the order passed by the Appellate Authority under the Payment of Gratuity Act, 1972, Amravati dated 16.09.2022 in P.G.A. Appeal No.11/2021 and also Judgment and order dated 28.07.2021, passed by the learned Controlling Authority, Labour Court, Amravati passed in Application PGA No.03/2019.
8. As all the matters are involving a similar issue therefore, they are taken up to decide together. Writ Petition No.4810/2024 is taken as leading case for consideration of facts and other material.
9. Petitioner came to be appointed by the Respondent as a ‘Clerk’ in Water Supply Department on daily wage basis on 03.04.1983. The services of the Petitioner were confirmed as a Clerk on 23.05.2001. He is receiving the remuneration under the terms and conditions of the Respondent Municipal Council, Achalpur and as per the Resolution of the Government of Maharashtra. After completion of continuous service of 28 years, the Petitioner attained the age of superannuation and was retired from services. On retirement, he was entitled to receive an amount of Rs.2,48,850/- towards gratuity but, only received Rs.51,187/- from the Respondent. The Petitioner filed an application before the Controlling Authority, Labout Court, Amravati under the Payment of Gratuity Act, 1972 (for short the “PG Act”) for remaining amount of gratuity along with interest. The said application came to be registered as Application (PGA) No.21/2014. In the said application, the Petitioner prayed for payment of remaining gratuity amount i.e. Rs.1,97,663/- along with interest. The notice was issued to the Respondent. Respondent filed its written-statement. There was no dispute over the fact that the Petitioner was working as a Clerk in Class-III cadre and was getting remuneration as per the direction of the Government of Maharashtra. Parties led their respective evidence. The learned Authority vide order dated 01.10.2018 was pleased to partly allowed the application with cost and directed Respondent to pay the remaining gratuity amount i.e. Rs.1,96,663/- along with interest at the rate of 10% per annum since the date of due till its actual realization.
10. Being aggrieved by the said judgment, on 02.11.2018, the non-applicant preferre
