RAJASTHAN HIGH COURT BENCH AT JAIPUR
Mahendar Kumar Goyal, J.
Managing Committee & Ors. - Appellants
Versus
Vishwambhar Lal Joshi & Ors. - Respondents
Civil Writ Petition No. 4044 of 2021
Decided On : 22-11-2021
Gratuity - Employment - Rajasthan Non-Government Educational Institutions Act, 1989, Section 21; Rajasthan Non-Government Educational Institutions (Recognition, Grant-In-Aid and Service Conditions Etc.) Rules, 1993, Rule 82 - The court upheld the right of employees to receive gratuity for their entire service period, interpreting the relevant acts and rules to ensure fair compensation upon retirement.
Fact of the Case:
The petitioners challenged the execution of a tribunal order directing them to pay gratuity to a retired teacher, arguing that gratuity should only be calculated from the date the relevant rules came into force.
Finding of the Court:
The court found that the entire length of service should be considered for gratuity calculation, rejecting the petitioners' arguments and affirming the tribunal's decision.
Issues: Whether the period of service prior to the enforcement of the relevant rules can be included in the calculation of gratuity.
Ratio Decidendi: The court held that the right to gratuity under the applicable rules includes the entire service period, as long as the employment ended after the rules came into effect.
Result: The writ petition is dismissed with costs.
ORDER
1. This writ petition assails the legality and validity of the order dated 07.01.2020 passed by the Court of learned Senior Civil Judge, Laxmangarh District Sikar whereby the objection raised by the petitioners/non-applicants in the execution petition filed by the respondent No.l, has been dismissed.
2. The facts in brief are that the respondent No.l was appointed vide order dated 20.07.1964 by the petitioner institution as Senior Teacher against a sanctioned and aided post. He retired on29.11.2001 on attaining the age of superannuation. The application No.44/2006 filed by the respondent No.l under Section 21 of the Rajasthan Non-Government Educational Institutions Act, 1989 (for brevity, "the Act of 1989") seeking inter alia payment of gratuity came to be allowed by the Rajasthan Non-Government Educational Institutions Tribunal, Jaipur (for brevity, "the Tribunal") vide its judgment dated 24.11.2009 and the petitioners were directed to pay to the respondent No.l entire gratuity with 6% interest. On failure to pay the dues as per direction of the learned Tribunal dated 24.11.2009, the respondent No.l preferred an execution petition which is sub judice in the Court of learned Senior Civil Judge, Laxmangarh. In the execution petition, an objection was raised by the petitioner as to the amount of gratuity contending that since the Rajasthan Non-Government Educational Institutions (Recognition, Grant-In-Aid and Service Conditions Etc.) Rules, 1993 (for brevity "the Rules of 1993") came into force with effect from 01.04.1993, the respondent would be entitled for the gratuity for a period from 01.04.1993 till 30.11.2001, i.e., the date of retirement. However, the learned execution Court, vide its order impugned dated 07.01.2020, rejected objection of the petitioners and directed payment of gratuity to the respondent No.l taking into consideration his entire length of service.
3. Learned counsel for the petitioners submitted that the respondent employee is not entitled for gratuity computing his service prior to 01.04.1993 i.e. coming into force of the Rules of 1993. Relying on a judgment of the Hon'ble Apex Court of India in case of Rajasthan Welfare Society Vs. State of Rajasthan: (2005) 5 Supreme Court Cases 275, learned counsel submitted that the "teachers" which are otherwise not included within the definition of employees under the provisions of Payment of Gratuity Act, 1972 (for brevity "the Act of 1972"), have been extended benefit of the gratuity for the first time under Section 16 of the Act of 1989 and Rule 82 of the Rules of 1993 and hence, the respondent could not claim benefit for the service rendered prior to 01.04.1993 for computation of gratuity. He submitted that in Civil Appeal No.4970/2011, State of Rajasthan and Ors. Vs. Mahila Mandal, the Hon'ble Apex Court has held that since Rules came into force from 01.01.1993, the benefit could not have been extended from the earlier period. Lastly, he submitted that since, the judgment dated 24.11.2009 passed by the Tribunal execution whereof has been sought, does not prescribe the service period for which the respondent employee would be entitled for payment of gratuity and hence, the learned executing Court has passed the order impugned exceeding its jurisdiction. He, therefore, prayed for quashing the order dated 07.01.2020.
4. Heard the learned counsel for the petitioners and perused the record.
5. The issue as to the period of service which is to be taken into consideration for the grant of gratuity, is no more res integra. The Hon'ble Apex Court has, in case of The Management of Goodyear India Ltd. Vs. K.G. Devessar: AIR 1985 SC 1759, while dealing with a similar issue, held as under:
Management of Goodyear India Ltd. v. Shri K.G. Devesar (AIR 1985 SC 1759)
Premier Automobiles Ltd. v. Kamlakar Shantaram Wadke and Ors. (AIR 1975 SC 2238)
The Management of Goodyear India Ltd. Vs. K.G. Devessar: AIR 1985 SC 1759
Employees of aided educational institutions are entitled to gratuity for their entire service period, as per the applicable rules and acts.
The court held that the petitioner-institution is liable to pay gratuity and leave encashment to respondent-employees for their service period, as per the applicable rules and acts.
Salary – Leave encashment is part of salary – In present case, management establishment was recipient of 70% aid, in form of grant – State cannot shrug its responsibility to shoulder its part of resp....
The court established that the definition of 'employee' under the Payment of Gratuity Act includes the petitioner, entitling him to gratuity despite state claims of exclusion.
Voluntary retirement constitutes an option for gratuity eligibility, regardless of not opting to retire at the age of 60.
Gratuity under the Payment of Gratuity Act, 1972 must include entire continuous service, including stop-gap employment, unless exempted by the appropriate Government.
Service matter - Payment of a gratuity - Rule 5 of these Rules provided that a gratuity equal to six times pay last drawn by a teacher at time of his death would be payable provided he had put in not....
Entitlement to gratuity for teachers retiring at 60 years is established by interpreting Government Orders and previous judgments, irrespective of retirement date and age options.
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