Gratuity under the Payment of Gratuity Act, 1972 must include entire continuous service, including stop-gap employment, unless exempted by the appropriate Government.

JUDGMENT

Mr. Harsh Bunger, J.

Petitioners-Punjab Agricultural University, Ludhiana and others have filed the instant writ petition under Articles 226/227 of the Constitution of India seeking writ in the nature of Certiorari for quashing an order dated 13.12.2016 (Annexure P-5) passed by the Controlling Authority under the Payment of Gratuity Act,1972 as well as order dated 12.12.2017 (Annexure P-6) passed by the Appellate Authority under the Payment of Gratuity Act, 1972.

2. Briefly, respondent No.1 (Sukhjeet Kaur) filed an application (Annexure P-3) before the Controlling Authority under the Payment of Gratuity Act, 1972 seeking a direction to the petitioners-University to pay gratuity to her. As per respondent No.1 (Sukhjeet Kaur), she was an employee of the Punjab Agricultural University, Ludhiana and she retired from service on 31.07.2014 after completion of 35 years, 6 months and 13 days of continuous service. She claimed that she joined the University as daily paid worker on 19.01.1979 up to 06.05.1980 and thereafter, she worked as Sports Attendant up to 31.07.2014. Respondent No.1 claimed that she was not paid full gratuity as per her due entitlement and she was paid gratuity amount of Rs.4,70,207/- by counting her service as 25 years, 6 months and 7 days. Respondent No.1 claimed that the petitioners-University had wrongly ignored her service of more than 10 years and had withheld the balance gratuity amount without assigning any reason, accordingly, claim for gratuity was made.

3. On the other hand, the claim for the gratuity amount by respondent No.1 (Sukhjeet Kaur) was contested by the petitioners-University by submitting that respondent No.1 has rendered service only for 25 years, 6 months and 7 days and for the said period, the gratuity amount already stands paid. It was submitted that as per the rules and regulations of the Punjab Agricultural University, there was no provision to count the service of stop gap basis on which respondent No.1 was kept. It was also submitted that the service of respondent No.1 was covered under Punjab Civil Services Rules which are applicable to the Punjab Agricultural University, accordingly, respondent No.1 was entitled to gratuity as per the Funds and Pension Rules of the Punjab Agricultural University and her case was not covered under the Payment of Gratuity Act, 1972. It was stated that prior to 24.01.1989, respondent No.1 was appointed in the department on stop gap basis and her services were regularized on 25.01.1989. It was further stated that respondent No.1 was not entitled to any gratuity, for the period she worked on daily wage basis w.e.f. 19.01.1979 to 06.05.1980. Accordingly, prayer for dismissal of the claim of respondent No.1 was made.

4. The Controlling Authority under the Payment of Gratuity Act, 1972 vide the order dated 13.12.2016 (Annexure P-5) allowed the claim of respondent No.1 and she was held entitled to gratuity amount of Rs.8,34,486/-. It was clarified that the gratuity amount of Rs.4,70,207/- has already been received by respondent No.1, accordingly, balance gratuity amount of Rs. 3,64,279/- was liable to be paid to her.

5. Being dissatisfied with the aforesaid award, the petitioners herein, filed a Statutory Appeal under section 7 (7) of the Payment of Gratuity Act, 1972, however, the same was dismissed by the Appellate Authority vide order dated 12.12.2017 (Annexure P-6) by holding as under:-

"8. From the perusal of above Clause of the ibid Act, I am of the considered view that for calculating gratuity, entire service rendered by an employee is required to be counted irrespective of the effect whether it is on adhoc basis, stop gap arrangement or otherwise, if it is uninterrupted the entire service to be counted for determining gratuity under the ibid Act. Therefore, the respondent employee is entitled to gratuity for the period from 19/01/1989 to 31/07/2014.

9. In view of the above discussion the order of the Controlling Authority dated 13.12.2016 is p