RAJASTHAN HIGH COURT
Dwarka Prasad, J.
M/s Mewar Textiles Mills Ltd. - Appellant
Versus
IT., Raj., Jaipur & ors. - Respondent
S.B.C.W.P. No. 1639 of 1976.
Decided On : 21-08-1984
RETIREMENT AGE - SUPERANNUATION - PAYMENT OF GRATUITY ACT, 1972 - STANDING ORDERS - INDUSTRIAL EMPLOYMENT (STANDING ORDERS) ACT, RAJASTHAN - AGE OF RETIREMENT NOT SPECIFIED IN CONTRACT OR RULES - REASONABLE AND FAIR AGE OF RETIREMENT TO BE FIXED BY TRIBUNAL OR COURT - EMPLOYEES ENTITLED TO EMOLUMENTS AND OTHER BENEFITS UPTO AGE OF SUPERANNUATION.
Fact of the Case:
Three employees of a textile company were discharged from service on the ground of superannuation at the age of 58 years. The company claimed that it had the right to retire its employees at the age of 58 years, while the union representing the employees contended that there was no rule or regulation governing the age of superannuation and that the employees were entitled to continue in service as long as they were physically and mentally fit to serve the employer.
Finding of the Court:
The court held that in the absence of any rule or regulation or Standing Order prevailing in the company at the relevant time fixing the age of superannuation, the company could not lawfully discharge the services of the employees on the ground of superannuation. The court also held that the provisions of the Payment of Gratuity Act, 1972, which define 'superannuation' as the attainment of the age of 58 years, unless otherwise specified in the contract or conditions of service, do not apply in cases where the contract of employment does not contain any such term.
Issues: 1. Whether the company had the right to retire its employees at the age of 58 years in the absence of any rule or regulation or Standing Order governing the age of superannuation? 2. Whether the provisions of the Payment of Gratuity Act, 1972, apply in cases where the contract of employment does not contain any term regarding the age of superannuation?
Ratio Decidendi: 1. In the absence of any rule or regulation or Standing Order prevailing in the company at the relevant time fixing the age of superannuation, the company could not lawfully discharge the services of the employees on the ground of superannuation. 2. The provisions of the Payment of Gratuity Act, 1972, which define 'superannuation' as the attainment of the age of 58 years, unless otherwise specified in the contract or conditions of service, do not apply in cases where the contract of employment does not contain any such term.
Final Decision: The court partly allowed the writ petition and set aside the order passed by the Industrial Tribunal No. 1, Jaipur dated March 2, 1976. The three workmen having attained the age of superannuation, namely. 60 years need not be reinstated. However. Manohar Singh and Janina Lal shall be entitled to receive wages and other monetary benefits upto October 24, 1973 and April 25, 1974 respectively. The claim of Dayaram is not maintainable as he had already attained the age of 60 years on the date when he was superannuated. The amounts already paid to Manohar Singh and Jamna Lil by the order of this Court shall be adjusted against the amount which may be found payable to them. The excess amount which might have been paid to Dayaram and Manohar Singh by the petitioner shall, however, be not refunded by them to the employer.
25-4-72 25-4-74 24-10-71 24-10-73 15-8-68 15-8-70
S.No. Name Date of birth Date of attaining age of 58 years Date of attaining age of 60 years. 1. Jamna Lal 25-4-1914 2. Manohar Singh 24-10-1913 3. Daya Ram 15-8-1910
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