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IN THE HIGH COURT OF DELHI
Prathiba M. Singh, J.
Management of CPWD - Appellant
Versus
Bhori Lal - Respondent
W.P.(C) 13330 of 2021 & CM Appl. 41999 of 2021
Decided On : 25-11-2021




Jurisdictional issues regarding the applicability of the Gratuity Act must be addressed by the Appellate Authority before dismissing an appeal on delay grounds.

Headnote:(A) Payment of Gratuity Act, 1972 - Section 2(e) - Writ petition challenging order by Appellate Authority dismissing appeal on grounds of delay, ruling that grievances should be addressed on merits regarding delay and applicability of laws governing gratuity - The original order granted a sum of Rs.2,38,430/- with interest to the Workman. (Paras 2, 6, 8)

(B) Legal Principles - Applicability of the Gratuity Act questioned, with emphasis on the need for adjudication by Appellate Authority on jurisdictional matters - Delay condoned due to complex legal considerations, including determination of employee's status under Central Rules. (Paras 5, 6, 8)

Facts of the case:
The writ challenges dismissal of an appeal regarding gratuity under the 1972 Act, with contention surrounding the employee's tenure and entitlement to gratuity versus pension rules.

Findings of Court:
The jurisdictional issue related to the applicability of the Gratuity Act should be assessed by the Appellate Authority before a delay ruling is made.

Issues: Focus on whether the Gratuity Act applies and if the appeal was rightly dismissed on grounds of delay.

Ratio Decidendi: The court determined that jurisdictional queries should be prioritized, allowing appeals on their merits regardless of timing while considering applicable statutes.

Result: The appeal is remanded for new hearing and delay condoned.

Table of Content
1. challenge to gratuity act applicability due to delay. (Para 2)
2. arguments on delay, applicability of gratuity act, and evidence of employment. (Para 3)
3. jurisdictional issues regarding gratuity act need adjudication. (Para 4 , 5 , 6)
4. appeal remanded for adjudication with costs directed. (Para 7 , 8 , 9 , 10 , 11)

JUDGMENT

Prathiba M. Singh, J. (Oral)--This hearing has been done in physical Court. Hybrid mode is permitted in cases where permission is being sought from the Court.

2. The present writ challenges the impugned order passed by the Appellate Authority under the Payment of Gratuity Act, 1972 (hereinafter "Gratuity Act") dated 23rd February, 2021 in Gratuity Appeal No. 36(08)/2021 P.A.DYV. The said appeal was dismissed on the ground of delay as being beyond limitation in terms of Section 7(7) of the Gratuity Act. The original impugned order by the Controlling Authority, bearing No. ALC II 36(25)/2016 dated 25th August, 2020, awarded a sum of Rs.2,38,430/- along with simple interest at 10% to the Workman, from the exact date of retirement of the Workman till the date the amount of gratuity actually paid.

3. The submissions of Ms. Sarika Singh, ld. Counsel appearing for the Petitioner are three-fold:

(i) that the delay ought to have been condoned and the matter ought to be heard on merits;

(ii) that the Gratuity Act would not apply and the Central Civil Services (Pension) Rules, 1972 (hereinafter "CCS Rules"), would be applicable to the Workman; and

(iii) that there is no evidence of the Workman having worked with the Petitioner for a period of eight years and eight months.

Thus, she submits the award of the said amount by the Controlling Authority is untenable.

4. This Court has in Union of India v. Ramesh Chand [W.P.(C.) 6115/2021, decided on 6th July, 2021], taking into consideration the decision in Union of India v. Manik Lal Banerjee, (2006) 9 SCC 643, held that in the case of workmen who are governed by the CCS Rules, the applicability of the Gratuity Act would have to be considered by the Authorities concerned. The observations in the said judgment are set out below:-

    "9. The issue relating to non-applicability of the provisions of the Payment of Gratuity Act, 1972 and the applicability of CCS Rules to the Respondents, has not been considered either by the Controlling Authority or the Appellate Authority. The Appellate Authority has simply rejected the appeal as being barred by limitation. A perusal of the Appeal filed shows that there is a specific ground that the Respondent is governed by the CCS Rules. The relevant provision of the Payment of Gratuity Act, 1972 is extracted below:

    "Section 2. Definitions.

    In this Act, unless the context otherwise requires, -

    ...

    (e) "employee" means any person (other than an apprentice) employed on wages, in any establishment, factory, mine, oilfield, plantation, port, railway company or shop, to do any skilled, semi-skilled, or unskilled, manual, supervisory, technical or clerical work, whether the terms of such employment are express or implied, and whether or not such person is employed in a managerial or administrative capacity, but does not include any such person who 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."

    10. The Supreme Court in Union of India v. Manik Lal Banerjee, (2006) 9 SCC 643, in a case concerning an employee of the Railways, considered the applicability of Section 2(e) of the Payment of Gratuity Act, 1972 and held as under:

    "10. The 1972 Act was enacted to provide for a scheme inter alia for payment of gratuity to employees in relation to railway companies.

    11. Section 2(e) of the 1972 Act defines "employee" to mean

    "any person (other than an apprentice) employed on wages, in any establishment, factory, mine, oilfield, plantation, port, railway company or shop, to do any skilled, semi-skilled, or unskilled, manual, supervisory,

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