The main legal point established is that the Competent Authority under the 1975 Regulations governs the payment of gratuity to employees of Cooperative Societies, and the definition of an employee as per the Regulations is crucial in determining gratuity rights.

JUDGMENT :

(1). Heard learned counsel for the petitioner, Sri Udai Bhanu Singh, learned counsel for the Respondents No. 5 & 7 and Sri Satyam Singh, learned counsel for the Respondent No.3.

(2). This Court has heard the parties at length and finds that the petitioner's claim gratuity from their initial date of engagement as Ad hoc employees on the basis of an order passed on 08.10.1985 after agreement between the parties that they shall be regularized w.e.f. the initial date of their engagement. In the said order of regularization, an exception was carved out only to the extent that back wages and other allowances and other kind of arrears shall not be claimed by such regularized employees. No mention was made therein that gratuity will not be payable to them as gratuity is not an arrear and it becomes payable only when a person retires.

(3). It has been argued by the learned counsel for the petitioners that initially when they had approached the respondents, the matter was referred to the Cooperative Institutional Service Board, and the Cooperative Institutional Service Board while considering the definition of employee as given under the Act had rejected the claim of the petitioners for gratuity w.e.f. their initial date of engagement. The petitioners challenged such order dated 04.09.2019 in Writ A No. 18804 of 2019, 'Pramod Kumar Singh and 2 Others vs. State of U.P. and Others. This Court by its order dated 28.11.2019 observed that the Secretary of the Institutional Service Board is not the Competent Authority/Controlling Authority under the Payment of Gratuity Act, 1972. The petitioner should make their claim before the Controlling Authority under the Payment of Gratuity Act, 1972 and the order passed by the Secretary of the Cooperative Institutional Service Board would not come in the way of the Controlling Authority to pass appropriate orders. The Bank challenged such order in Special Appeal Defective No. 284 of 2020 which was allowed on 13.10.2020 by referring to the observations made by the Hon'ble Supreme Court in the Case of Ghaziabad Zila Sahkari Bank Ltd. Vs. Addl. Labour Commissioner and Others (2007) 11 SCC 756 followed in Shobhai Ram Vs. State of U.P. 2014 (6) ADJ 280. The Appellate Court observed that the 1975 Regulations specifically have a provision for Gratuity under Regulation 95, and therefore, such provision shall govern the employees of Cooperative Societies and not the Payment of Gratuity Act, 1972.

(4). The Appellate Court modified the order dated 28.11.2019 passed by the Writ Court and the petitioners were directed to approach the Authority provided under Regulation 95 of the 1975 Regulations. Consequent to such order being passed, the Chief Executive Officer of District Cooperative Bank Limited, Jaunpur referring to the earlier opinion expressed by the Cooperative Institutional Service Board with regard to the definition of employee has rejected the petitioner's claim for Gratuity being calculated on the basis of their initial date of engagement, and has directed that calculation of gratuity be made w.e.f. the date of their regularization.

(5). Learned counsel for the petitioners has also pointed out that in an identically situated employee's case i.e. in the case of Ajay Kumar Singh, the Additional Commissioner and Additional Registrar, Cooperative, Varanasi Mandal, Varanasi has passed an Order on 29.04.2018 for calculation and payment of gratuity to Ajay Kumar Singh from the date of his initial engagement.

(6). Learned counsel for the respondent, on the other hand, has pointed out that it is not disputed by the petitioners that they are employees of a Cooperative Society and governed by the 1965 Act and also by the 1975 Regulations. The Cooperative Institutional Service Board may render opinion/advise or give instructions under the Act and the Regulations, if a matter is referred to it. The question of calculation of gratuity of the petitioners was referred to the Cooperative Institutional Service Board