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2013 Supreme(HP) 390

HIGH COURT OF HIMACHAL PRADESH
RAJIV SHARMA, J.
SH. RAM KRISHAN
VS.
SH. RAM KRISHAN PRADESH
CWP No. 4350 of 2012 -E
Decided on : May 20, 2013

Advocates:
Advocate Appeared
DEVENDER SHARMA, BHUPENDER THAKUR

The main legal point established is that daily waged employees are entitled to gratuity and statutory bonus under the Payment of Gratuity Act, 1972 and The Payment of Bonus Act, 1965.

Headnote:

Gratuity - Employment Entitlement - Payment of Gratuity Act, 1972, Section 3.6(1) of Service Bye-laws - The Payment of Bonus Act, 1965, Section 8

Fact of the Case:

Petitioners were appointed on daily wage basis, declared surplus, and later regularized in the State Government. They sought gratuity and statutory bonus, which were denied by the respondent. The court found that the petitioners, as daily waged employees, were entitled to gratuity and statutory bonus under the respective acts.

Finding of the Court:

The court found that the petitioners, as daily waged employees, were entitled to gratuity and statutory bonus under the respective acts.

Issues: Entitlement to gratuity and statutory bonus for daily waged employees

Ratio Decidendi: The court relied on the Payment of Gratuity Act, 1972 and The Payment of Bonus Act, 1965 to establish the entitlement of daily waged employees to gratuity and statutory bonus.

Final Decision: The court allowed the writ petition, quashed the previous order, and directed the respondents to pay the petitioners gratuity with interest under the Service Bye-laws and statutory bonus along with statutory interest within six weeks.

JUDGMENT

RAJIV SHARMA, J.

1. PETITIONER No. 1 was appointed on daily wage basis in the respondent -Corporation in the year, 1993. Petitioner No. 2 was appointed on daily wage basis in the year, 1994. They were declared surplus on 20.08.2007. Petitioner No. 1 was regularized as Water Carrier in the office of Superintendent of Police Kinnaur, District Kinnaur, Himachal Pradesh. Petitioner No. 2 was regularized as Attendant in the Animal Husbandry Department vide order, dated 20.08.2007. Petitioner No. 1 made a representation for payment of gratuity to the respondent - Corporation on 11.09.2011. The representation made by the petitioner was rejected on 29.09.2011 vide Annexure P -3.

2. MR. Devender Sharma, learned vice counsel for the petitioners has vehemently argued that his clients are entitled to gratuity under the Payment of Gratuity Act, 1972/ as per Clause 1 Whether the reporters of the local papers may be allowed to see the judgment Yes. 3.6(1) of Service Bye -laws of the Corporation. He also contended that his clients are entitled to statutory bonus as per Section 8 of The Payment of Bonus Act, 1965.

Mr. Bhupender Thakur, learned counsel for the respondents has argued that since the petitioners were working on daily wage basis, they are neither entitled to gratuity nor to the bonus.

3. I have heard the learned counsel for the parties and gone through the pleadings carefully.

4. IT is clear from Annexure P-3 that as per Clause 3.6(1) of Service Bye -laws of the Corporation, an officer/other employees of the Corporation on termination of his/her employment is entitled to gratuity after rendering continuous service for not less than five years. The expression used in the Bye-laws is 'employee '. The 'employee ' would also cover daily waged workman. Petitioners have rendered 15 years ' uninterrupted service with the respondent -Corporation. They have been declared surplus and regularized in the State Government on 20.08.2007. The expression 'surplus ' in the case of the petitioner will amount to termination of their employment from Corporation. They have put in more than 5 years of continuous service and the gratuity cannot be denied to them only on the ground that they are working on daily wage basis.

A Division Bench of this Court in Chaudhary Sarwan Kumar Himachal Pradesh Krishi Vishvavidyalaya, Palampur Vs. Nag, 2011 (3) Shimla Law Cases 365 has held that as per the statutory provisions of Payment of Gratuity Act, 1972, it does not make any difference as to whether an employee is paid daily wages or weekly wages or monthly wages. The only condition is that he should be employed by the employer on wages in an establishment covered by the Act and should be in continuous service, as required under Section 2 -A of the Act. The Division Bench has further held that even seasonal employees and piecerated employees are covered by the Act subject to their fulfilling the prescribed requirements. Therefore, a daily waged employee was held covered by the Act. The Division Bench has held as under:

''3. A perusal of the statutory provisions, as extracted above, would clearly show that the Act does not make any difference as to whether an employee is paid daily wages or weekly wages or monthly wages. The condition is only that he should be employed by the employer on wages in an establishment covered by the Act and should be in continuous service, as required under Section 2-A of the Act. Even seasonal employees and piece -rated employees are covered by the Act subject to their fulfilling the prescribed requirements. Therefore, a daily waged employee is, thus, covered by the Act. 4. It is the contention of the University that its service conditions do not provide for gratuity. Section 14 of the Act provides as follows: -

''The provisions of this Act or any rule made thereunder shall have effect notwithstanding anything inconsistent therewith contained in any enactments other than this Act or in any instrument or contract having effect by






















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