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[Cites 9, Cited by 2]

Gujarat High Court

State Of Gujarat & Anr vs Kiritsinh Dhirubha Jadeja on 6 June, 2016

Author: Paresh Upadhyay

Bench: Paresh Upadhyay

               C/SCA/1573/2016                                          CAV JUDGMENT




                   IN THE HIGH COURT OF GUJARAT AT AHMEDABAD

                      SPECIAL CIVIL APPLICATION NO. 1573 of 2016

         ==============================================================
                      STATE OF GUJARAT & ANR.                              ...Petitioners
                                       Versus
                      KIRITSINH DHIRUBHA JADEJA
                      AND ORS.                                             ...Respondents
         ==============================================================
         Appearance:
         MS MANISHA SHAH, GOVERNMENT PLEADER for the Petitioners State
         MR PREMAL S RACHH, ADVOCATE for the Respondent No. 1
         Respondents No. 2 - 3 are served
         ==============================================================

          CORAM: HONOURABLE MR.JUSTICE PARESH UPADHYAY

                                   Date : 06/06/2016


                                   CAV JUDGMENT

1. Challenge in this petition is made by the Employer - State to the order passed by the Controlling Authority under the Payment of Gratuity Act, 1972 at Jamnagar in Gratuity Case No.89 of 2013 dated 30.12.2013. By the impugned order, the Controlling Authority has held that, the employee is entitled to gratuity, also for the period from 01.10.1984 to 31.03.1995 - the period which was excluded by the employer from the total period of service from 01.10.1984 to 30.11.2012. The appeal against the said order is not entertained by the Appellate Authority at Rajkot and the same is dismissed vide order dated 02.12.2014 in Appeal No.83 of 2014.

2. The relevant facts as emerging from record are as under.

Page 1 of 22

HC-NIC Page 1 of 22 Created On Tue Jun 07 00:59:17 IST 2016 C/SCA/1573/2016 CAV JUDGMENT 2.1 The respondent employee had initially joined the service on 01.10.1984. He was taken as a daily wager labouror.

2.2 Subsequently, with effect from 01.04.1995, he was taken up in the regular pay-scale of Rs.750-940 (then prevailing).

2.3 He retired on attaining the age of superannuation on 30.11.2012.

2.4 He is paid his pension and gratuity under the Gujarat Civil Services (Pension) Rules, 2002. The said payment is made considering his service from 01.04.1995 to 30.11.2012.

2.5 He is not paid anything towards the service for the period from 01.10.1984 to 31.03.1995.

2.6 It is the case of the employee that, he is entitled to receive gratuity for the entire service i.e. from 01.10.1984 to 30.11.2012. It is also his case that he is already paid gratuity for his service for the period from 01.04.1995 to 30.11.2012 under the provisions of The Gujarat Civil Services (Pension) Rules, 2002 and therefore he does not claim gratuity under the provisions of The Payment of Gratuity Act, 1972 for the said period. However, it is his case that, for the period from 01.10.1984 to 31.03.1995 he should be paid gratuity under the provisions of The Payment of Gratuity Act, 1972, since for the said period, he is not paid gratuity under the Gujarat Civil Services (Pension) Rules, 2002. He had asked for it, which was denied and under these circumstance, he approached the Controlling Authority and the Controlling Authority has Page 2 of 22 HC-NIC Page 2 of 22 Created On Tue Jun 07 00:59:17 IST 2016 C/SCA/1573/2016 CAV JUDGMENT accepted the claim vide order dated 30.12.2013.

2.7 By the impugned order dated 30.12.2013, the employer - State is directed to make payment of gratuity under the Payment of Gratuity Act for the period from 01.10.1984 to 31.03.1995 amounting to Rs.87,623/- plus statutory interest thereon.

2.8 It is noted that, the said order of the Controlling Authority dated 30.12.2013 was challenged by the employer in Gratuity Appeal No.83 of 2014. The same was filed after the period of limitation. The Appellate Authority has not entertained the Appeal being barred by limitation. Whether the Appellate Authority should have condoned the delay or not is not the subject matter of this petition. Parties have concentrated on merits of the matter and this Court has also decided the issue on merits, as to whether the order of the Controlling Authority directing the payment of gratuity for the period from 01.10.1984 to 31.03.1995 is legal.

3. It is noted that, this petition was heard along with number of other matters involving identical, similar or nearer issue. Reference is made to:- (i) the order dated 22.04.2016 in Special Civil Application No.213 of 2016, (ii) order dated 10.03.2016 in Special Civil Application No.20755 of 2015, (iii) order dated 12.01.2016 in Special Civil Application No.20146 of 2015 and (iv) order dated 27.01.2016 in Special Civil Application No.1219 of 2016. For the reasons recorded in the said orders, the authorities of the Government of Gujarat in various departments including:- (i) the Finance Department, (ii) the Labour and Employment Department, (iii) the Urban Housing and Urban Development Department, (iv) the Energy and Petrochemicals Department,

(v) the Panchayat Rural Housing and Rural Development Department, (vi) the Women and Child Development Department and (vii) the Commissioner of Page 3 of 22 HC-NIC Page 3 of 22 Created On Tue Jun 07 00:59:17 IST 2016 C/SCA/1573/2016 CAV JUDGMENT Labour were joined as party respondents. Learned Government Pleader herself has appeared on behalf of the said authorities and has assisted the Court, along with other learned advocates for the respective employer.

4. Heard learned advocates.

5.1 Ms.Manisha Shah, learned Government Pleader for the State Authorities (Employer) has submitted that, in view of the liberal policy of the Government, on completion of certain years of service as a daily wager, the concerned employee is taken on the regular pay-scale and in due course of time his service is regularsied for all purposes, including for the purpose of payment of pension and gratuity. It is submitted that, the concerned employee having been regularised as such, would be entitled to claim not only gratuity but also pension under the Gujarat Civil Services (Pension) Rules, 2002, subject to stipulations made thereunder. It is submitted that, what the employee gets under the State Rules is more beneficial to him, as compared to what he would have got under the Payment of Gratuity Act, 1972, had his service not been regularised. It is submitted that, after having accepted the benefits under the State Rules for the part of the total service, the employee can not be permitted to claim gratuity under the Payment of Gratuity Act, 1972. It is submitted that, it does not matter whether the said claim is for the same period or for the different period. Learned Government Pleader has taken this Court through the provisions of the Payment of Gratuity Act, 1972 and the Gujarat Civil Services (Pension) Rules, 2002. Reliance is also placed on the decision of the Chattisgarh High Court in the case of Smt. Pramodani Mishra vs. State of Chhatisgarh recorded on Writ Petition No.3168 of 2010 dated 04.07.2012.

Page 4 of 22

HC-NIC Page 4 of 22 Created On Tue Jun 07 00:59:17 IST 2016 C/SCA/1573/2016 CAV JUDGMENT 5.2 It is submitted that, the view taken by the Controlling Authority and the Appellate Authority in this case is contrary to the provisions of the Act and would be inconsistent with the Gujarat Civil Services (Pension) Rules, 2002. It is submitted that, for this reason, the impugned orders passed by the authorities below be interfered with.

6.1 On the other hand, learned advocate for the employee has submitted that, even if the break-up of the total service of the employee into two parts, as 'qualifying' and 'non- qualifying' may be valid in view of the provisions of the Gujarat Civil Services (Pension) Rules, 2002, it can not result in complete negation of the Payment of Gratuity Act, 1972 more particularly in view of Section 14 thereof. It is submitted that, had the employee claimed gratuity under both the provisions i.e. 'the Act' and 'the Rules' for the same period, it can not be accepted, however, that is not the claim of the employee. What is claimed by the employee is only that, he be paid gratuity under the provisions of The Payment of Gratuity Act, 1972, for the period for which he is not paid gratuity under the Gujarat Civil Services (Pension) Rules, 2002. Reliance is placed on the decision of the Himachal Pradesh High Court in the case of State of H.P. vs. Lashkari Ram reported in 2008 - I - LLJ 137 in Civil Writ Petition No.150 of 2004 dated 09.05.2007.

6.2 It is submitted that, the authorities below have not committed any error in accepting the claim of the employee and therefore this petition be dismissed.

7. Having heard learned advocates for the respective Page 5 of 22 HC-NIC Page 5 of 22 Created On Tue Jun 07 00:59:17 IST 2016 C/SCA/1573/2016 CAV JUDGMENT parties and having gone through the material on record, this Court finds that the point for consideration before this Court in this case is, that when an employee is paid his gratuity by the Employer (State) under the provisions of the Gujarat Civil Services (Pension) Rules, 2002, for the part of the total length of his service, whether he can claim gratuity under the provisions of The Payment of Gratuity Act, 1972, for the remaining period of his service i.e. for the period for which he is not paid gratuity under The Gujarat Civil Services (Pension) Rules, 2002.

8.1 For the above purpose, relevant provisions of the Payment of Gratuity Act, 1972 and the Gujarat Civil Services (Pension) Rules, 2002 need to be kept in view. They are as under.

8.2 The relevant portion of the section 4 of the Act reads as under.

"4.  Payment  of  gratuity.  ­  (1) Gratuity shall  be payable to an employee on the termination of  his employment after he has rendered continuous  service for not less than five years, ­ 
(a) on his superannuation, or 
(b) on his retirement or resignation, or 
(c)  on his death or disablement due to  accident or disease:
Provided   that   the   completion   of   continuous  service   of   five   years   shall   not   be   necessary  where the termination of the employment of any  Page 6 of 22 HC-NIC Page 6 of 22 Created On Tue Jun 07 00:59:17 IST 2016 C/SCA/1573/2016 CAV JUDGMENT employee is due to death or disablement:
(5) Nothing   in   this   section   shall   affect   the  right of an employee to receive better terms of  gratuity   under   any   award   or   agreement   or  contract with the employer. 
(6) Notwithstanding   anything   contained   in   sub­ section (1), 
(a) the gratuity of an employee, whose services  have   been   terminated   for   any   act,   willful  omission   or   negligence   causing   any   damage   or  loss to, or destruction of , property belonging  to the employer shall be forfeited to the extent  of the damage or loss so caused; 
(b) the gratuity payable to an employee [may be  wholly or partially forfeited ] ­ 
(i) if  the   services   of   such  employee  have   been  terminated for his riotous or disorderly conduct  or any other act of violence on his part, or
(ii) if   the   services   of   such   employee   have  been terminated for any act which constitutes an  offence involving moral turpitude, provided that  such offence is committed by him in the course  of his employment." 

8.3 "Employee" is defined in the Act as under.

"2(e) "employee" means any person (other than  an   apprentice)   who   is   employed   for   wages,  whether the terms of such employment are express  Page 7 of 22 HC-NIC Page 7 of 22 Created On Tue Jun 07 00:59:17 IST 2016 C/SCA/1573/2016 CAV JUDGMENT or   implied,   in   any   kind   of   work,   manual   or  otherwise, in or in connection with the work of  a   factory,   mine,   oilfield,   plantation,   port,  railway company, shop or other establishment to  which this Act applies, but does not include any  such person who holds a post under the Central  Government or a State Government and is governed  by any other Act or by any rules providing for  payment of gratuity"

8.4 Other provisions of the Act, which may have bearing on the point at issue, are as under.

8.4.1 "2(q) " retirement " means termination of the service of an employee otherwise than on superannuation;"

8.4.2 "2(r) "superannuation", in relation to an employee, means the attainment by the employee of such age as is fixed in the contract or conditions of service as the age on the attainment of which the employer shall vacate the employment;"

8.4.3 "2(s) "wages" means all emoluments which are earned by an employee while on duty or on leave in accordance with the terms and conditions of his employments and which are paid or are payable to him in cash and includes dearness allowance but does not include any bonus, commission, house rent allowance, overtime wages and any other allowance."

8.5 The Payment of Gratuity Act, 1972 is the Central Act and the Gujarat Civil Services (Pension) Rules, 2002 is the set of Rules framed by the State in exercise of its power under Page 8 of 22 HC-NIC Page 8 of 22 Created On Tue Jun 07 00:59:17 IST 2016 C/SCA/1573/2016 CAV JUDGMENT proviso to Article 309 of the Constitution of India. The Act would prevail over the Rules. Even otherwise there is specific provision in the Act, which reads as under.

"14. Act to override other enactments, etc. ­  The   provisions   of   this   Act   or   any   rule   made  thereunder   shall   have   effect   notwithstanding  anything inconsistent therewith contained in any  enactment   other   than   this   Act   or   in   any  instrument or contract having effect by virtue  of any enactment other than this Act." 

9. The relevant provisions of the Gujarat Civil Services (Pension) Rules, 2002, relating to payment of gratuity to the employee, are as under.

9.1 "Rule­9(68).­"Qualifying Service" means service  rendered while on duty or otherwise which may be  taken in account for the purpose of pension and  gratuity admissible under Gujarat Civil Services  (Pension) Rules." 

9.2 "Rule­25.   Qualifying   Service   :  Subject   to   the  provisions of these rules, qualifying service of  a Government employee, means and includes, ­

(i) all   service   including   service   on   probation  rendered   on   a   regular   establishment   in   any  capacity   whether,   temporary   or   permanent,  interrupted   or   continuous  but   it   shall   not  Page 9 of 22 HC-NIC Page 9 of 22 Created On Tue Jun 07 00:59:17 IST 2016 C/SCA/1573/2016 CAV JUDGMENT include ­ 

  (a) service in non­pensionable establishment, 

(b) service paid from contingencies, 

(c) service rendered in daily rated  establishment, 

(d) actual periods of break in service if any,   between spell of service, 

(e) service prior to resignation, removal or  dismissal, 

(f) service as an apprentice, 

(g) service on fixed pay basis, and 

(h) service on contract basis. 

(ii) all   service   rendered   in   work   charged  establishment   provided   that   the   total   service  put in, as such is five years or more, 

(iii) foreign service,

(iv) Vacation taken by Government employee in  vacation department, 

(v) all periods of leave including extraordinary  leave upto a maximum of thirty six months during  entire service, 

(vi) addition   to   qualifying   service  admissible under rule - 37, 

(vii) services   rendered   as   Kotwal   by   a  Government employee after regular appointment in  the regular time scale.

(viii)   Services     rendered   as   full   time  attendant   by   a   Government   employee   before   his  Page 10 of 22 HC-NIC Page 10 of 22 Created On Tue Jun 07 00:59:17 IST 2016 C/SCA/1573/2016 CAV JUDGMENT regular appointment in class IV service, and 

(ix) services   rendered   under   the   Central  Government   /   Central   Government   Autonomous  bodies   having   pension   scheme,   by   a   Government  employee who is absorbed in Government. 

(x) Pensionable service rendered by an employee  in   a   grant­in­aid   institution   the   pension  liability  in  respect  of  which  is  borne  by  the  Government   to  the  extent  as  may  be  ordered  by  the Government from time to time." 

9.3 "Rule­80.   Amount   of   Service   Gratuity   /  Pension : 

(1)     In   the   case   of   a   Government   employee  retiring   on   Superannuation,   Retiring,   Invalid,  Wound and Injury or Compensation Pension before  completing qualifying service of ten years, the  amount of service gratuity shall be one month's  'pay' for each completed year of service. 
(2)
(a) In   the   case   of   a   Government   employee  retiring on Superannuation, Retiring, Invalid  or   Compensation   Pension   in   accordance   with  the   provisions   of   these   rules   after  completing   qualifying   service   of   not   less  than   thirty­three   years,   the   amount   of  pension   shall   be   fifty   per   cent   of   the  pensionable pay subject to minimum amount of  Page 11 of 22 HC-NIC Page 11 of 22 Created On Tue Jun 07 00:59:17 IST 2016 C/SCA/1573/2016 CAV JUDGMENT Rs.1275 and maximum amount of Rs.13000.
(b) In   the   case   of   a   Government   employee  retiring on Superannuation, Retiring, Invalid  or   Compensation   Pension   in   accordance   with  the   provisions   of   these   rules   before  completing qualifying service of thirty­three  years but after completing qualifying service  of the ten years, the amount of pension shall  be   proportionate   to   the   amount   of   pension  under   clause   (a)   and   in   no   case   the   amount  shall be less than minimum. 
   
(3) In   calculating   the   length   of   qualifying  service, fraction of a year equal to six months  and  above  shall  be  treated  as  a  complete  year  and reckoned as qualifying service. 
(4) The   amount   of   pension   finally   determined  under clause (a) or clause (b) of sub­rule (2),  shall be expressed in whole rupees and where the  pension contains a fraction of a rupee it shall  be rounded off to the next higher rupee."

Note:­  The   pay   for   the   purpose   of   service   gratuity admissible under sub­rule (1) shall be   the   last   drawn   pay   plus   dearness   allowance  admissible on the date of actual retirement.    9.4 "Rule­81. Death - cum - Retirement Gratuity : 

(1)   (a)  A   Government   employee,   who   has   become  Page 12 of 22 HC-NIC Page 12 of 22 Created On Tue Jun 07 00:59:17 IST 2016 C/SCA/1573/2016 CAV JUDGMENT eligible for service gratuity or pension under  Rule   80   shall,   on   his   retirement,   be   granted  death­cum­retirement gratuity equal to one half  of his pay last drawn for each completed year of  qualifying   service,   subject   to   a   maximum   of  16.1/2 times the pay."

9.5 "Rule­26.   Conditions   subject   to   which   service  qualifies   :  (1)   The   service   of   a   Government  employee   shall   not   qualify   unless   his   duties,  pay   and   allowance   are   regulated   by   the  Government or under conditions determined by the  Government. 

(2) For   the   purposes   of   sub­rule   (1)   the  expression   'service'   means   service   under  Government   and   paid   by   Government   from   the  Consolidated Fund of State." 

9.6 "Rule­   27.Age   after   which   service   counts   for  pension   :  Service   rendered   by   a   Government  employee   after   attaining   the   age   of   eighteen  years shall only be counted for pension." 

9.7 "Rule­ 34. Interruption in service : (1) Unless  there   are   specific   entries   regarding   break   in  service in the service record of the Government  employee, all service from the date of entry to  the   date   of   retirement   shall   be   treated   as  Page 13 of 22 HC-NIC Page 13 of 22 Created On Tue Jun 07 00:59:17 IST 2016 C/SCA/1573/2016 CAV JUDGMENT continuous   -   subject   to   the   condition   that   in  case   if  there   is  interruption  in  service   of  a  period   of   more   than   three   months,   the   entire  interruption shall be disregarded while working  out   the   qualifying   service,   interruption   upto  three   months   being   treated   as   qualifying  service.

(2) All unauthorised absences not regularised by  grant of leave and all leave of any kind granted  for   a   continuous   period   exceeding   five   years  shall constitute a brake in service and shall be  dealt with as per sub­rule (1)." 

9.8 "39.  Non­pensionable  service  :  Notwithstanding  anything   contained   in   rule   25,   the   following  shall not be pensionable service:­ 

(a) Government   employees   who   are   paid   for  services   rendered   for   Government   but   who   are  not   retained   for   whole   time   in   the   public  service, 

(b) Government employees who are not in receipt  of pay but are remunerated by honoraria, 

(c) Government   employees   holding   posts   which  have been declared to be non­pensionable, 

(d) Holders   of   all  tenure   posts   in   the   Medical  Department, whether private practice is allowed  to them or not, when they do not have an active  Page 14 of 22 HC-NIC Page 14 of 22 Created On Tue Jun 07 00:59:17 IST 2016 C/SCA/1573/2016 CAV JUDGMENT or suspended lien on any other permanent posts  under Government."

10. The provisions of the Payment of Gratuity Act, 1972 need to be read and applied keeping in view the observations of Honourable the Supreme Court of India in the case of Ahmedabad Pvt. Primary Teachers' Association vs. Administrative Officer reported in AIR 2004 SC 1426. Para: 6 and 7 of the said decision read as under.

"6. The   Act   is   a   piece   of   social   welfare  legislation   and   deals   with   the   payment   of  gratuity which is a kind of retiral benefit like  pension,   provident   fund   etc.   As   has   been  explained   in   the   concurring   opinion   of   one   of  the learned Judges of the High Court 'gratuity  in its etymological sense is a gift, especially  for   services   rendered,   or   return   for   favours  received.'   It   has   now   been   universally  recognized   that   all   persons   in   society   need  protection   against   loss   of   income   due   to  unemployment arising out of incapacity to work  due   to   invalidity,   old   age   etc.   For   the   wage  earning population, security of income, when the  worker   becomes   old   or   infirm,   is   of  consequential   importance.   The   provisions  contained in the Act are in the nature of social  security   measures   like   employment   insurance,  provident fund and pension. The Act accepts, in  principle, compulsory payment of gratuity as a  social   security   measure   to   wage   earning  Page 15 of 22 HC-NIC Page 15 of 22 Created On Tue Jun 07 00:59:17 IST 2016 C/SCA/1573/2016 CAV JUDGMENT population   in   industries,   factories   and  establishments. 
7. Thus,   the   main   purpose   and   concept   of  gratuity   is   to   help   the   workman   after  retirement, whether, retirement is a result of  rules of superannuation, or physical disablement  or   impairment   of   vital   part   of   the   body.   The  expression 'gratuity' itself suggest that it is  a   gratuitous   payment   given   to   an   employee   on  discharge, superannuation or death. Gratuity is  an   amount   paid   unconnected   with   any  consideration and not resting upon it, and has  to   be   considered   as   something   given   freely,  voluntarily or without recompense. It is sort of  financial   assistance   to   tide   over   post­retiral  hardships and inconveniences."   

11. If the above quoted provisions of the Payment of Gratuity Act, 1972 and the Gujarat Civil Services (Pension) Rules, 2002 are conjointly and harmoniously read and applied in the facts of the present case, while keeping in view the observations of Honourable the Supreme Court of India in the case of Ahmedabad Pvt. Primary Teachers' Association (supra), the picture which has emerged before this Court is as under.

11.1 It is the case of the employee that, he is entitled to receive gratuity for the entire service i.e. from 01.10.1984 to 30.11.2012. It is also his case that he is already paid gratuity for his service for the period from 01.04.1995 to 30.11.2012 under the provisions of The Gujarat Civil Services (Pension) Rules, 2002 and therefore he does not claim gratuity under the Page 16 of 22 HC-NIC Page 16 of 22 Created On Tue Jun 07 00:59:17 IST 2016 C/SCA/1573/2016 CAV JUDGMENT provisions of The Payment of Gratuity Act, 1972 for the said period. However, it is his case that, for the period from 01.10.1984 to 31.03.1995 he should be paid gratuity under the provisions of The Payment of Gratuity Act, 1972, since for the said period, he is not paid gratuity under the Gujarat Civil Services (Pension) Rules, 2002.

11.2 It is not in dispute that, had the service of the employee been not regularised, he would have been paid gratuity under the Payment of Gratuity Act, 1972 for the entire service.

11.3 The break-up of the total service of the employee into two parts, as 'qualifying' and 'non-qualifying' as is done by the Employer in this case, may, at the first blush, appear to be valid in view of the provisions of the Gujarat Civil Services (Pension) Rules, 2002. Specific reference can be made to Rule 25(i)(c),(g),(b) and (ii) read with Rule 9(68). Applying the said pair of Rules, the stand of the State that only part of the service is accepted to be qualifying service for the purpose of payment of gratuity under 'the Rules', may not be discarded, that too when the legality of 'the Rules' is not the subject matter of the petition, further when the challenge in this petition is to the order passed by the Controlling Authority under the Payment of Gratuity Act, 1972. However, the said stand of the State can not be accepted to the extent that it will negate even the Payment of Gratuity Act, 1972 along with Section 14 thereof. Had the employee claimed gratuity under both the provisions i.e. 'the Act' and 'the Rules' for the same period, it can not be accepted. However, that is not the case. The claim of the employee is that, he be paid gratuity under the provisions of The Payment of Gratuity Act, 1972, for the Page 17 of 22 HC-NIC Page 17 of 22 Created On Tue Jun 07 00:59:17 IST 2016 C/SCA/1573/2016 CAV JUDGMENT period for which he is not paid gratuity under the Gujarat Civil Services (Pension) Rules, 2002. No provision of the Gujarat Civil Services (Pension) Rules, 2002 can authorise the State to dis-entitle the employee from this claim. Only because, for some part of the service, the employer pays gratuity at better rate is no ground to wipe out the earlier service of the employee for the purpose of payment of gratuity under the Act.

12.1 It is noted that, identical issue had cropped up before the Himachal Pradesh High Court in the case of State of H.P. vs. Lashkari Ram reported in 2008 - I - LLJ 137 ( Civil Writ Petition No.150 of 2004, dated 09.05.2007).

12.2 Para:10 of the said judgment reads as under.

"10.   Two   questions   which   require   deep  consideration by this Court are:
(1) Whether the workman is entitled to get  gratuity for the period he remains on daily  wages   basis   under   the   Payment   of   Gratuity  Act,   1972   and   thereafter   is   he   entitled   to  get   the   gratuity   under   the   CCS   (Pension)  Rules,   1972   for   the   period   commencing   from  regularisation to the date of supperannuation  ? 
(2) Whether   the   workman's   entire   period  w.e.f.   his   initial   date   of   engagement   on  daily   wages   basis,   including   the   period   of  regularisation   up   to   superannuation,   will  Page 18 of 22 HC-NIC Page 18 of 22 Created On Tue Jun 07 00:59:17 IST 2016 C/SCA/1573/2016 CAV JUDGMENT entitle him to get the gratuity either under  the   Payment   of   Gratuity   Act,   1972   or   under  the CCS (Pension) Rules, 1972 ?"

12.3 After considering the various decisions of Honourable the Supreme Court of India, the Court held as under.

"23.     In   view   of   the   above   discussion,   the  Controlling Authority was required to calculate  the gratuity for the period w.e.f. March, 1982  to   December   31,   1993   under   the   Payment   of  Gratuity Act, 1972 and for the remaining period  i.e.   January   1,   1994   to   January   31,   2001  (regular   period   only),   the   State   was   bound   to  pay the gratuity under the CCS (Pension) Rules,  1972. Accordingly, the writ petition is disposed  of with the following directions:
(i) The   workman   is   entitled   to   get   the  gratuity for the period w.e.f .March, 1982 to  December   31,   1993   under   the   Payment   of  Gratuity Act, 1972 with interest as per   law  laid down by the Hon'ble Supreme Court in  H.  Gangahanume Gowda v. Karnataka Agro Industries  Corpn. Ltd. (supra); [AIR 2003 SC 1526]
(ii) The workman is held entitled and is to  be paid the gratuity w.e.f. January 1, 1994 to  January 31, 2001 (sic) (regular period) under  the CCS (Pension) Rules, 1972 with interest @  9% per annum. The copy of the judgment be sent  to the Secretary Labour & Employment for its  Page 19 of 22 HC-NIC Page 19 of 22 Created On Tue Jun 07 00:59:17 IST 2016 C/SCA/1573/2016 CAV JUDGMENT distribution   to   the   Controlling   as   well   as  Appellate   Authority   constituted   under   the  Payment of Gratuity Act, 1972." 

12.4 The view taken by this Court in the present case is further fortified by the above decision.

13.1 Reference can also be made to the decision of the Division Bench of this Court in the case of Chief Officer vs. Mohmad Irshad Husenbhai Baloch recorded on Letters Patent Appeal No.214 of 2011 dated 03.02.2001.

13.2 Reference also needs to be made to the decisions of this Court in the case of (i) Vadodara Mahanagar Seva Sadan vs. Vimlaben Natubhai Sharma recorded on Special Civil Application No.6683 of 2013 dated 26.04.2013 and (ii) Vadodara Mahanagar Seva Sadan vs. Subhashbhai Khodabhai Solanki recorded on Special Civil Application No.8744 of 2013 dated 03.07.2013 and 25.07.2013.

14. The decision of the Chattishgarh High Court in the case of Pramodani Mishra (supra) as relied by the learned advocates for the employer would not take the case of the employer any further for the reason that, the claim of the employee in the said case was for pension and gratuity under the State Rules like the Gujarat Civil Services (Pension) Rules, 2002, under which the service as a daily wager was not accepted as pensionable service. Whether the said employee was entitled to gratuity under the provisions of the Payment of Gratuity Act, 1972 or not was not the issue before the High Court. It needs to be noted that in the present case, the claim of the employee, as noted above is to the effect that, he be paid Page 20 of 22 HC-NIC Page 20 of 22 Created On Tue Jun 07 00:59:17 IST 2016 C/SCA/1573/2016 CAV JUDGMENT gratuity under the provisions of The Payment of Gratuity Act, 1972, for the period for which he is not paid gratuity under the Gujarat Civil Services (Pension) Rules, 2002.

15. In view of above, in the facts of the present case, it is held that when the employee is paid his gratuity by the Employer (State) under the provisions of the Gujarat Civil Services (Pension) Rules, 2002 for the part of the total length of his service, he is not dis-entitled to claim gratuity under the provisions of The Payment of Gratuity Act, 1972 for the remaining period of his service i.e. for the period for which he is not paid gratuity under The Gujarat Civil Services (Pension) Rules, 2002, if otherwise there is no disqualification under the provisions of the Act. In the present case therefore it is held and it needs to be directed that, the employee is entitled to claim gratuity under the Payment of the Gratuity Act, 1972 for the period for which he is not paid gratuity under the Gujarat Civil Services (Pension) Rules, 2002.

16. For the reasons recorded above, the following order is passed.

16.1 This petition is dismissed.

16.2 The impugned order passed by the Controlling Authority under the Payment of Gratuity Act, 1972 at Jamnagar in Gratuity Case No.89 of 2013 dated 30.12.2013 is confirmed.

16.3 Rule is discharged. No order as to costs.

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HC-NIC Page 21 of 22 Created On Tue Jun 07 00:59:17 IST 2016 C/SCA/1573/2016 CAV JUDGMENT (PARESH UPADHYAY, J.) Amit/14 Page 22 of 22 HC-NIC Page 22 of 22 Created On Tue Jun 07 00:59:17 IST 2016