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2019 Supreme(Raj) 953

IN THE HIGH COURT OF RAJASTHAN BENCH AT JAIPUR
MOHAMMAD RAFIQ, NARENDRA SINGH DHADDHA, JJ.
Managing Committee, K.D. Jain Shikshan Parishad and Ors. - Appellants
Versus
Mamta Gangwal and Ors. - Respondent
D.B. Civil Spl. Appeal (Writ) No. 430 of 2019 in S.B. Civil Writ Petition No. 7937 of 2017
Decided On : 21-05-2019

Advocates Appeared:
For the Appellant :Vivek Dangi, Hitesh Jatawat, Sommya Chaturvedi and James Bedi, Advocates
For the Respondent: C.L. Saini, AAG, D.P. Sharma and Aman Pareek

Headnote:

Payment of Gratuity Act, 1972 - Sections 2, 4, 7 and 82 – Marketing - Educational - All these appeals are directed against common judgment passed by learned Single Judge of this Court whereby applications filed by appellants for recall of orders passed by learned Single Judge have been dismissed - Also under challenge are aforesaid orders passed by learned Single Bench of this Court - Learned Single Judge vide order which was based on consent of parties directed appellant-Managing Committee to pay full amount of gratuity along with interest till it is actually paid to employees concerned and further share of management in respect of other arrears of employees was also ordered to be released - Held, We must look at Act as a whole and discover what each section each clause each phrase and each word is meant and designed to say as to fit into scheme of entire act - Taking contextual interpretation of word retirement as its definition given in which includes termination of service by an employer of an employee otherwise than superannuation voluntary option given by employees working on aided sanctioned post in Non-Government Aided Educational Institutions obviously along with consent of such institution for being appointed with Government on conditions given would in that spirit mean termination of service as far as previous employer viz - In so far as award of interest on delayed payment of gratuity and leave encashment is concerned since appellants have unduly retained aforesaid amount which became payable to respondents-employees soon upon their appointment with Government they would certainly be liable to pay interest - Direction of learned Single in requiring appellants to pay interest therefore cannot be faulted - Petition is disposed of.

JUDGMENT :

1. All these appeals are directed against the common judgment dated 18.01.2019 passed by the learned Single Judge of this Court, whereby applications filed by the appellants for recall of the orders dated 12.01.2018 and 07.08.2018 passed by the learned Single Judge, have been dismissed. Also under challenge are the aforesaid orders dated 12.01.2018 and 07.08.2018 passed by the learned Single Bench of this Court. Learned Single Judge vide order dated 12.01.2018, which was based on consent of the parties, directed the appellant-Managing Committee to pay full amount of gratuity along with interest @ 6% p.a. till it is actually paid to the employees concerned and further 20% share of the management in respect of other arrears of the employees was also ordered to be released. Vide order dated 07.08.2018, time to comply with the aforesaid order dated 12.01.2018 was extended by further two months on the applications filed by the appellants.

2. Mr. Vivek Dangi, learned counsel for the appellants submitted that the learned Single Judge has erred in law in directing payment of gratuity and leave encashment to the respondents much prior to their retirement/superannuation/termination of their services. Even though the appellants have paid their share of arrears of 6th Pay. Commission, senior and selection scale and full amount of leave encashment, but the respondents would not be entitled to gratuity and encashment of privilege leaves at this stage as the same is considered as retiral benefits. The respondents are still in service and have yet not retired. Learned counsel referred to Rule 82(1) of the Rajasthan Non-Government Educational Institutions (Recognition, Grant-in- aid and Service conditions etc.) Rules, 1993 (for short 'the Rules of 1993') and argued that the employees of the aided educational institutions shall be entitled to gratuity as admissible under the Payment of Gratuity Act, 1972 (for short 'the Act of 1972'), as amended from time to time. Section 4 of the Act of 1972 provides that gratuity shall be payable to an employee on the termination of his employment after he has rendered continuous service for not less than five years, (a) on his superannuation or; (b) on his retirement or resignation; and (c) on his death or disablement due to accident or disease. The respondents in the present matters, have neither attained the age of superannuation, nor have retired or resigned from service and not even become incapable to work on account of death or accident or incurable disease. They have rather been absorbed in the services of the State Government under the Rajasthan Voluntary Rural Education Service Rules, 2010 (for short 'the Rules of 2010') and therefore they continue to be in service. The respondents cannot claim payment of gratuity at premature stage.

3. Mr. Vivek Dangi, learned counsel argued that as per Rule 47 of the Rules of 1993 read with Rule 91B of the Rajasthan Service Rules, 1951 (for short 'the Rules of 1951'), the benefit of encashment of privilege leaves is also admissible only on retirement of the employee whereas the respondents are still in service.' Reliance is placed on judgment dated 07.03.2018 rendered by Division Bench of this Court in Managing Committee, Shri Raghunath Higher Secondary School, Laxmangarh (Sikar) & Another Vs. Mahesh Kumar Sharma & Another (D.B. Special Appeal Writ No. 1758/2017 along with other connected appeals) wherein the appellant-Managing Committee was directed to pay to the State the amount of gratuity and leave encashment. Learned counsel submitted that despite submission of the due drawn statements of the respondents-employees along with original service books/records, the State Government has failed to verify the same and make re- fixation of salary and other emoluments of the respondents as per recommendations of the 6th Pay Commission for the period from 20

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