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2023 Supreme(All) 2519

IN THE HIGH COURT OF ALLAHABAD
ALOK MATHUR, J.
Secy. Co-Operative Cane Development Union Ltd. - Petitioner
Versus
Gyan Prakash Sharma And Ors. - Respondents
WRIT C NO. 1771 OF 2016.
Decided On : 08-12-2023

Advocates appeared:
For the Petitioner: Anand Shanker Asthana and Paramanand Asthana
For the Respondents: C.S.C, Ramendra Kumar Dixit, Sanjai Kumar Singh and Suresh Chandra Mishra.

Seasonal employees engaged for more than 240 days per year are entitled to gratuity at 15 days' wages per year under the Payment of Gratuity Act, not the lower rate.

Headnote:(A) Payment of Gratuity Act, 1972 - Section 4(2) - Gratuity entitlement for seasonal employees - The court affirmed that seasonal clerks working over 240 days per year are entitled to gratuity calculated at 15 days' wages per year, not 7 days per season. The controversy regarding gratuity has been settled by previous judgments which were upheld by the Supreme Court and are binding. (Paras 3, 27, 28)

(B) Gratuity Calculation - The court clarified the distinction between seasonal and regular employment, asserting that despite the seasonal designation, continuous engagement qualifies for higher gratuity rates. (Paras 3, 27)

Facts of the case:
The petitioner contested the calculation of gratuity, alleging entitlement to Rs. 90,212/- based on continuous service of 29 years, as opposed to the lower amount received. The case revolved around interpretations of statutory regulations governing seasonal employees in the Co-operative Cane Development Union.

Findings of Court:
The petitioner qualified for gratuity at the rate of 15 days' wages per year for 29 years of service and was entitled to statutory interest for delays.

Issues: The main question pertained to the entitlement of seasonal employees to gratuity rates and how continuous service affects this calculation.

Ratio Decidendi: The court concluded that designation as a seasonal employee does not negate the right to gratuity at the higher rate established for continuous work under the Act, confirming previous rulings and adding statutory interest.

Result: Writ petition allowed.

Table of Content
1. payment of gratuity to seasonal employees (Para 2)
2. previous judgments and their finality (Para 3 , 4)
3. consolidation of past cases emphasizes eligibility requirements for gratuity. (Para 5 , 6)
4. final order and payment directives (Para 7)

JUDGMENT

Alok Mathur, J.

Heard Sri Anand Shanker Asthana, learned counsel for the petitioner, Sri Sanjai Kumar Singh, learned counsel for the respondent no.1 as well as learned State Counsel and perused the records.

2. The controversy in the present case in regarding the payment of gratuity to the seasonal employees, employed with the CoOperative Cane Development Union Ltd., Phardhan, District Lakhimpur Kheri, at the rate of 15 days' wages each year for service rendered by them.

3. Sri Anand Shanker Asthana, learned counsel for the petitioner and Sri Sanjai Kumar Singh, learned counsel for the respondent no.1 both have jointly informed this Court that the aforesaid controversy has been decided by this Court in two judgments, namely, Mahak Singh v. Appellate Authority/Deputy Labour Commissioner, Payment of Gratuity in Writ-C No.11140 of 2019 dated 24.07.2019 and also in Misc. Single No.8053 of 2011 ( Daya Shankar Agnihotri v. Appellate Authority Under The Payment of Gratuity Act and Another) dated 13.08.2019. Both the Co-ordinate Benches of This Court have independently considered the submissions an held that seasonal clerk employed by a Cane Co-operative Society who works for more than 240 days in a year is entitled to gratuity @ 15 days' wages, worked out on the wages last drawn during the last year that he has worked for 240 days in accordance with section 4 (2) of the Payment of Gratuity Act, 1972 (hereinafter referred to as the Act) and for all such years that a seasonal clerk has worked for more than 240 days in a year, even in a seasonal establishment, his gratuity cannot be worked out under the second proviso of Section 4 (2) of the Act @ 7 days' wages for each season.

4. It has been submitted that both these judgments were subjected to a Special Leave Petition before the Hon'ble Supreme Court and the Special Leave Petition has been dismissed by means of order dated 21.03.2002 in Special Appeal No.25228 of 2019 (Cooperative Cane Development Ltd. v. Mahak Singh). It is clear that the said controversy has already attained finality and accordingly, the present writ petition is also to be disposed of in terms of the findings recorded by this Court. For the sake of convenience, the judgment passed in Misc. Single No.8053 of 2011 ( Daya Shankar Agnihotri v. Appellate Authority Under The Payment of Gratuity Act and Another) dated 13.08.2019, is quoted herein-under:-

    "1. Heard learned counsel for the petitioner and Sri Paramanand Asthana for the respondent no.2.

    2. This petition has been filed by the petitioner, challenging the order dated 31.3.2010 passed by the appellate authority and the order dated 9.6.2009 passed by the Controlling Authority in PG Case No.2 of 2006 under the Payment of Gratuity Act, 1972.

    3. It has been submitted by the learned counsel for the petitioner that the petitioner was employed as Seasonal Clerk in the establishment of respondent no.2 i.e. Sahkari Ganna Vikas Samiti Ltd., Hargaon, District Sitapur initially on 31.12.1974 and continued working as such upto the age of superannuation on 31.8.2003. He completed 29 years of continuous service under the respondent no.2 and at the time of his retirement, the petitioner was being given Rs. 5392/- per month as salary and after his retirement, the recommendations of 5th Pay Commission became applicable and his pay was fixed as Rs. 6678/- per month.

    4. Since the petitioner was not being paid gratuity of Rs. 90,212/- by the respondent no.2, but was only paid Rs. 40,171/- as gratuity, he filed PG Case No.2 of 2006. The Controlling Authority after hearing both the parties, passed the order on 9.6.2009 only partly allowing the claim of the petitioner. The petitioner had filed an application, praying to t

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