IN THE HIGH COURT OF ALLAHABAD
B. L. Yadav, J.
CO-OPERATIVE CANE DEVELOPMENT UNION LTD. - Appellant
Versus
NAHAR SINGH - Respondents
C. M. W. P. 23042 Of 1990
Decided On : 02/15/1993
PAYMENT OF GRATUITY ACT, 1972 - SECTION 4, 7, 14 - EMPLOYEES' ENTITLEMENT TO GRATUITY - INTERPRETATION OF CONTINUOUS SERVICE - APPLICABILITY OF REGULATIONS - OVERRIDING EFFECT OF THE ACT - SCOPE OF SECTION 14.
Fact of the Case:
The petitioners, Cane Growers Union, challenged the orders of the Controlling Authority and the Appellate Authority directing them to pay gratuity to the respondents, who were employed by the Union. The respondents claimed entitlement to gratuity under Section 4 of the Payment of Gratuity Act, 1972 (the Act), while the petitioners contended that the respondents were seasonal employees and not entitled to gratuity as their services were governed by the U.P. Cane Co-operative Service Regulations, 1975 (the Regulations).
Finding of the Court:
The court held that the respondents were not seasonal employees but were in continuous service for more than 5 years and were entitled to gratuity under the Act. The court found that the petitioners failed to prove that the respondents were seasonal employees and that the burden of proof was on them to establish this fact. The court also held that the provisions of the Act override any inconsistent provisions in other enactments or contracts, including the Regulations, and that the respondents were not debarred from claiming gratuity under the Act even if their services were governed to some extent by the Regulations.
Issues: 1. Whether the respondents were entitled to payment of gratuity under Section 4 of the Act or under similar other law. 2. Whether the respondents were seasonal employees and not entitled to gratuity as their services were governed by the Regulations.
Ratio Decidendi: 1. The court interpreted the definition of "continuous service" under Section 2(4) of the Act and held that the respondents had completed 240 days of service in each calendar year, which satisfied the requirement for continuous service. 2. The court found that the petitioners failed to produce any evidence to prove that the respondents were seasonal employees and that the burden of proof was on them to establish this fact. 3. The court held that the provisions of the Act override any inconsistent provisions in other enactments or contracts, including the Regulations, and that the respondents were not debarred from claiming gratuity under the Act even if their services were governed to some extent by the Regulations.
Final Decision: The court dismissed the petitions and upheld the orders of the Controlling Authority and the Appellate Authority directing the petitioners to pay gratuity to the respondents.
( 1 ) WHETHER the respondent No. 1 in these nine analogous writ petitions (hereinafter referred to as first, second and third petitions and so on), was entitled to payment of gratuity under Section 4 of the Payment of Gratuity Act, 1972 (compendiously the Act) and under similar other law, or whether the respondent No. 1 in all these petitions were seasonal employees and not entitled to be paid gratuity as their services were governed by the U. P. Cane Co-operative Service regulations, 1975 (for short the Regulations) are the short questions for determination. As these petitions involve similar questions, consequently it is convenient to dispose them of by a common judgment. Civil Misc. Writ Petition No. 23042 of 1990 shall, however, be the leading case.
( 2 ) FACTUAL matrix of the case is that the petitioners in these petitions are the Cane Growers Union, the employer, whereas respondent No. 1 in all these petitions are the workmen. Respondent No. 1 in the Writ Petition No. 23042 of 1990 retired on December 31, 1985 and made an application for payment of gratuity as he had rendered continuous service for not less than 5 years. Consequently he was entitled to payment of gratuity under Section 4 of the Act.
( 3 ) THE case set up by Respondent No. 1 was contested by the petitioners with the averments that respondent No. 1 was the seasonal employee and not a permanent employee. Consequently the service conditions of respondent No. 1 were governed by the provisions of U. P. Cane cooperative Service Regulations, 1975, framed under Section 122 of the U. P. Co-operative societies Act, 1965. Under Regulation 141 an employee who retires on completing 58 years of age or after completion of the age of 55 years, or in case he does any service to the Cane Union or the Federation, as the case may be, and puts in five years good, efficient and faithful service, will be paid gratuity at the following rate for every completed year of service i. e. 1 months pay for each year service for five years or over, subject to the limit of 15 months pay. But according to petitioner as respondent No. 1 has not put in 5 years continuous good, efficient and faithful service, hence there was no question of payment of any gratuity. In the alternative it was the case or petitioner that as the respondent No. 1 was seasonal workman employed only during sugar cane crushing season, hence not entitled to payment of gratuity.
( 4 ) AS there was dispute with regard to payment of gratuity, the employer, the petitioner having denied the same, whereas the respondent No. 1 having claimed the same, hence an application was made by respondent No. 1 and the Controlling Authority under Section 7 (4) (c) of the Act, after making due enquiry and after giving parties to the dispute reasonable opportunity of being heard, decided the matter in favour of respondent No. 1 by order dated May 14, 1988 (Annexure-1 to the petition), holding that respondent No. 1 was not a casual or seasonal workman, rather he has put in more than 5 years continuous service, hence was entitled to payment of gratuity.
( 5 ) THE petitioner preferred an appeal before the Appellate Authority under Section 7 (7) of the act, but the Appellate Authority confirmed the decision of the Controlling Authority by judgment and order dated July 26, 1990 (Annexure-2 to the petition ). The petitioner has preferred the present petitions to quash those orders by issuing a writ of certiorari.
( 6 ) SRI Shashi Nandan, learned counsel for the petitioners urged that respondent No. 1 in every writ petition was not in continuous service for more than five years, rather he was seasonal employee employed only during the crushing season and the case of respondent No. 1 was not covered by Section 4 of the Act, nor he was covered by the definition of "employee" as given under Section 2 (e) of the Act, inasmuch as his services were governed under Chapter XVI regulation 141 of the Regulations, hence the provisions of su
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