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2023 Supreme(Del) 5030

IN THE HIGH COURT OF DELHI AT NEW DELHI
Jyoti Singh, J.
Irfan Ali & Ors. – Appellants
Versus
Urdu Academy & Ors. – Respondents
W.P.(C) 6403 of 2023 W.P.(C) 6503 of 2023, W.P.(C) 9797 of 2021, W.P.(C) 9931 of 2021 & CM APPL. 49119 of 2022, W.P.(C) 12641 of 2021, W.P.(C) 12657 of 2021 & W.P.(C) 13590 of 2021
Decided On : 22-05-2023

Advocates appeared:
Mr. Varun Mudgil, Mr. Rakesh Kumar, Mr. Vijay Kumar, Mr. Mohit Mudgal and Mr. Sandeep, Advocates, for the Petitioners in W.P.(C) 6403/2023, W.P.(C) 6503/2023, W.P.(C) 12657/2021 and W.P.(C) 13590/2021.
Mrs. Avnish Ahlawat, Standing Counsel, GNCTD with Mr. N.K. Singh, Ms. Palak Rohmetra, Ms. Laavanya Kaushik and Ms. Aliza Alam, Advocates, for Respondents in W.P.(C) 6403/2023, W.P.(C) 6503/2023, W.P.(C) 9797/2021, W.P.(C) 9931/2021 & CM APPL. 49119/2022, W.P.(C) 12641/2021, W.P.(C) 12657/2021 and W.P.(C) 13590/2021.
Mr. Tushar Sannu, Standing Counsel with Mr. Azad Bansala, Advocate, for MCD in W.P.(C) 6503/2023.
Mr. Naushad Ahmed Khan, Advocate, for Punjabi Academy with Mr. V.K. Mogia, Secretary, Punjabi Academy, for the Respondent in W.P.(C) 6503/2023, W.P.(C) 9797/2021, W.P.(C) 9931/2021 & CM APPL. 49119/2022, W.P.(C) 12641/2021, W.P.(C) 12657/2021 and W.P.(C) 13590/2021.
Mr. Varun Mudgil, Mr. Rakesh Kumar, Mr. Vijay Kumar, Mr. Mohit Mudgal and Mr. Sandeep, Advocates, for the Petitioner in W.P.(C) 9797/2021, W.P.(C) 9931/2021 & CM APPL. 49119/2022, W.P.(C) 12641/2021.
Mr. Yeeshu Jain, Additional Standing Counsel with Ms. Jyoti Singh and Ms. Manisha, Advocates, for DoE in W.P.(C) 9797/2021, W.P.(C) 9931/2021 & CM APPL. 49119/2022.

The main legal point established in the judgment is that the amended definition of the word 'employee' under the Payment of Gratuity Act, 1972, covers contract-based Teachers, entitling them to claim Gratuity under the Act.

Headnote:

Gratuity - Payment of Gratuity Act, 1972 - Section 2(e), Amendment Act, 2009 - W.P.(C) 6403/2023, W.P.(C) 6503/2023, W.P.(C) 9797/2021, W.P.(C) 9931/2021, W.P.(C) 12641/2021, W.P.(C) 12657/2021 and W.P.(C) 13590/2021 - The court allowed the writ petitions seeking directions to implement the Payment of Gratuity (Amendment) Act, 2009 and release the amounts towards payment of Gratuity to the Petitioners from the date of their respective retirements. The court held that the Petitioners are covered under the amended definition of the word 'employee' and their cases are squarely covered by previous judgments, thus directing the Respondents to calculate and release the amounts payable to the Petitioners towards Gratuity, in accordance with the provisions of the Act.

Fact of the Case:

The Petitioners filed writ petitions seeking directions to implement the Payment of Gratuity (Amendment) Act, 2009 and release the amounts towards payment of Gratuity to the Petitioners from the date of their respective retirements. The Petitioners were appointed as full time TGTs/PGTs or Assistant Teachers in the Punjabi Academy or Urdu Academy and retired without receiving Gratuity due to their contract-based appointments.

Finding of the Court:

The court found that the Petitioners are covered under the amended definition of the word 'employee' and their cases are squarely covered by previous judgments. The court allowed the writ petitions and directed the Respondents to calculate and release the amounts payable to the Petitioners towards Gratuity, in accordance with the provisions of the Act.

Issues: The main issue was whether the Petitioners, who were appointed on a contract basis as Teachers in the respective Academies, are entitled to claim Gratuity under the Payment of Gratuity Act, 1972, as amended by the Amendment Act, 2009.

Ratio Decidendi: The court held that the Petitioners are covered under the amended definition of the word 'employee' and their cases are squarely covered by previous judgments, thus entitling them to claim Gratuity under the Act.

Final Decision: The writ petitions were allowed, and the Respondents were directed to calculate and release the amounts payable to the Petitioners towards Gratuity, in accordance with the provisions of the Act.

JUDGMENT

Jyoti Singh, J. (Oral)

C.M. APPL. 25219/2023 (exemption) In W.P.(C) 6403/2023

C.M. APPL. 25575/2023 (exemption) In W.P.(C) 6503/2023

1. Allowed, subject to all just exceptions.

2. Applications stand disposed of.

W.P.(C) 6403/2023, W.P.(C) 6503/2023, W.P.(C) 9797/2021, W.P.(C) 9931/2021, W.P.(C) 12641/2021, W.P.(C) 12657/2021 and W.P.(C) 13590/2021

3. Present writ petitions have been filed by the Petitioners seeking directions to the Respondents to implement the Payment of Gratuity (Amendment) Act, 2009 (No. 47 of 2009) w.e.f. 03.04.1997 and release the amounts towards payment of Gratuity to the Petitioners from the date of their respective retirements.

4. Facts are in a narrow compass. Petitioners in the aforesaid writ petitions were appointed as full time TGTs/PGTs (Punjabi) or TGTs/PGTs (Urdu) or Assistant Teachers respectively, in the Punjabi Academy or Urdu Academy, as the case may be and after serving for several years retired on attaining the age of 60 years. Since the appointments of the Petitioners were on contract basis, they were not given the benefit of Gratuity at the time of their leaving the service.

5. On 31.12.2009, amendment was made in the definition of the word `employee' as defined in Section 2(e) of the Payment of Gratuity Act, 1972 (hereinafter referred to as the `Act') by amending Act No. 47 of 2009 published on 31.12.2009 with retrospective effect from 03.04.1997. The impact of the amendment was that Teachers are now entitled to claim Gratuity under the said Act from their respective employers.

6. The grievance of the Petitioners is that after the amendment to the Act in 2009 it is no longer open to the Respondents to deny the benefits of Gratuity from 03.04.1997 to the Petitioners who were employed as Teachers in the respective Academies and deputed to different Schools for teaching Punjabi and Urdu. It is further submitted that this Court in Janardan Sharma v. GNCT of Delhi Through It's Chief Secretary & Ors., 2021 SCC OnLine Del 3895 has clearly held that the Act does not draw a distinction between a full-time or a part-time employee or even appointments on ad hoc basis etc. and therefore even the nature of the appointment of the Petitioners on contract basis is no longer an impediment in their way for grant of Gratuity benefits.

7. I have heard the learned counsels for the parties.

8. Indisputably, the Petitioners are covered under the amended definition of the word `employee' under Section 2(e) of the Act as amended by the Amending Act of 2009. In Janardan Sharma (supra) this Court has obliterated the distinction between Teachers based on the nature of their employment viz. full-time/part-time/ad hoc/contract etc. as the Act itself does not contemplate such a distinction for grant of Gratuity. The judgment was followed by another Co-ordinate Bench of this Court in a batch of petitions being W.P. (C) 13761/2022 and connected matters, titled Anuradha Seem and Others v. Directorate of Education & Anr., decided on 17.11.2022 and the Respondents were directed to extend the benefits of the decision to the Petitioners therein. Therefore, in my view, Petitioners are right in their submission that their cases are squarely covered by the aforementioned judgments where the issue stands crystallized and it is no longer open to the Respondents to deny Gratuity to them.

9. Ms. Avnish Ahlawat, learned Standing Counsel appearing on behalf of Respondents No.1 and 2 does not dispute the fact that case of the Petitioners in each of the writ petitions is covered by the judgments of this Court in Janardan Sharma (supra) and Anuradha Seem (supra), on all four corners. She, however, points out that a large number of employees are now entitled for grant of Gratuity and the matter is under active consideration for release of the amounts. She further submits that release of Gratuity entails calculations of the amounts payable, which in turn involves reckoning of various factors such as number of years of servi

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