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VIVEK JAIN
State of M. P. – Appellant
Versus
Shivnath Singh Kushwah – Respondent
ORDER
1. The present petitions have been filed by the petitioner/State of Madhya Pradesh and its functionaries being aggrieved by the Order dated 3.9.2024 passed by the Controlling authority under Payment of Gratuity Act, 1972 thereby allowing the claim of the respondent No.1 to get Gratuity on account of services rendered as Shiksha Karmi Grade II and thereafter, as Adhyapak and then as Madhyamik Shikshak. Since the issues arising in both the matters are similar, they were heard analogously and are being decided by this common order. For the sake of convenience, facts are taken from W.P.No.31272/2024.
2. The Controlling Authority has held the respondent No.1 entitled to get Gratuity of Rs.6,92,289/- alongwith interest Rs. 3,12,478/- i.e, total Rs.10,04,767/- with future interest till the date of payment. The said Order has been assailed by the State of Madhya Pradesh and its functionaries stating that the State Govt. is not liable to pay Gratuity to the respondent No.1.
3. Shri Ravindra Dixit, learned Government Advocate has vehemently argued that the respondent No.1 cannot be said to be an employee in terms of section 2 (e) of Payment of Gratuity Act, 1972 nor the petitioners (Stat
Teachers in basic institutions governed by state rules are not considered employees under the Gratuity Act, denying them gratuity benefits.
State government employees are excluded from the Payment of Gratuity Act, and their gratuity entitlement is regulated by separate Pension Rules, confirming a ceiling limit of Rs. 4 lakh.
The main legal point established in the judgment is that the Payment of Gratuity Act, 1972 applies to all employees, including daily wage employees, and entitles them to gratuity for their entire ser....
The court established that the definition of 'employee' under the Payment of Gratuity Act includes the petitioner, entitling him to gratuity despite state claims of exclusion.
The court held that the petitioner-institution is liable to pay gratuity and leave encashment to respondent-employees for their service period, as per the applicable rules and acts.
Salary – Leave encashment is part of salary – In present case, management establishment was recipient of 70% aid, in form of grant – State cannot shrug its responsibility to shoulder its part of resp....
The Gratuity Act provides overriding rights for gratuity claims that cannot be denied unless specifically exempted by law, even when alternative welfare benefits exist.
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