ANUBHA RAWAT CHOUDHARY
Baliram Beldar, S/o Late Agnu Beldar – Appellant
Versus
Project Officer, Block-II O. C. P. Mines – Respondent
JUDGMENT :
1. This writ petition has been filed for setting-aside the order dated 27.12.2017 (Annexure-9) passed in P.G. Appeal No. (18)/2017-A.7 by respondent no.2 under Payment of Gratuity Act, 1972 whereby the order dated 17.05.2017 (Annexure-5) in (P.G. Application) No. 36(78)/2015-E passed by the respondent no.3 has been modified and it has been held that gratuity of the petitioner for service beyond 30 years will be determined by taking one month as 26 days instead of 30 days as was held by the respondent no.3.
2. The sole point involved in the present case is –
Whether one month would be taken as 26 days (after deducting 4 Sundays) or it has to be taken as 30 days for calculation of gratuity relating to service rendered beyond years?
3. Foundational facts
a. The petitioner was engaged as casual loader by the respondent no.1 in the year 1973 and was absorbed on 10.09.1980. After completion of period of service of more than 30 years, he attained the age of superannuation on 30.06.2011.
b. The petitioner filed an application before the respondent no.3 for payment of differential gratuity amount of Rs. 2,16,956/-which was registered as PG Case No. 36/(78)/2015-E-4. The petition was al
Union Bank of India and others Vs. C.G. Ajay Babu and Another
Shri Digvijay Woollen Mills Ltd. Vs. Shri Mahendra Prataprai
Delhi Cloth and General Mills Company Limited Vs. Workmen" reported in AIR 1970 SC 919
The calculation of gratuity for service beyond 30 years must be based on 26 days per month, as per the Payment of Gratuity Act and National Coal Wage Agreement.
Gratuity must be based exclusively on actual wages drawn by an employee as defined in the Gratuity Act, without statutory provision for minimum wage adjustments.
Gratuity under the Payment of Gratuity Act, 1972 must include entire continuous service, including stop-gap employment, unless exempted by the appropriate Government.
The statutory notification setting the interest rate for gratuity under the Payment of Gratuity Act is binding until modified by a new notification from the government.
The court established that the interpretation of gratuity provisions must favor the employee, ensuring better terms under the applicable regulations.
The Payment of Gratuity Act, 1972 overrides contractual agreements, ensuring gratuity eligibility is determined by statutory provisions rather than settlement terms.
The main legal point established in the judgment is the overriding effect of the Payment of Gratuity Act, 1972, over other enactments, and the requirement of continuous service for the payment of gra....
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