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2015 DIGILAW 2301 (BOM)

Janta Central Whole-cell and Retail Co-operative Consumers Stores Limited v. Bansilal Lalchand Agrawal

2015-10-07

R.K.DESHPANDE

body2015
JUDGMENT R.K. DESHPANDE, J. 1. The respondent-employee worked with the petitioner as salesman from 01.08.1964 to 23.01.2000 on which date he attained the age of superannuation. Undisputedly, he was paid the amount of gratuity in accordance with law. He has attained the age of superannuation on 23.01.2000. The respondent-employee was granted extension on the said post beyond 23.01.2000 and he worked upto 23.01.2003. 2. The question involved is whether the respondent was required to count his post retiral service rendered on contract basis from 24.01.2000 to 23.01.2003 for the purposes of payment of gratuity. 3. Section 4(1) of the Payment of Gratuity Act being relevant is reproduced below:- 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. (b) On his retirement or resignation. (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 employee is due to death or disablement. Provided further that in the case of death of the employee, gratuity payable to him shall be paid to his nominee or, if no nomination has been made, to the heirs and where any such nominees or heirs is minor, the share of such minor, shall be deposited with the Controlling Authority who shall invest the same for the benefit of such minor in such bank or other financial institution, as may be prescribed, until such minor attains majority. In terms of the aforesaid provision of Section 4(1)(a), the gratuity becomes payable to an employee on termination of his employment after he has rendered continuous service for not less than five years, on his superannuation. The superannuation is defined under Section 2(r) of the said Act, as under:- 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 employee shall vacate the employment. 4. The superannuation is defined under Section 2(r) of the said Act, as under:- 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 employee shall vacate the employment. 4. In view of the provision of Section 4(1)(a) read with the definition of superannuation under Section 2(r), the employee becomes entitled to the gratuity upon completion of continuous five years of service under the contract or condition of service which fixes the age of superannuation and on such attainment vacates the employment. 5. Undisputedly, under the conditions of service applicable, the respondent attained the age of superannuation upon completion of 60 years of age on 23.01.2000, on which date he vacated the employment. In view of this, the respondent was not entitled to count his post superannuation service rendered on contract basis for the purposes of payment of gratuity. The impugned order holds that the employee was entitled to count such service. The same cannot, therefore, be sustained. 6. In the result, the writ petition is allowed. The orders dated 18.10.2004 passed by the Controlling Authority and confirmed in Appeal No. PGA/113/2005, decided on 07.03.2009 are hereby quashed and set aside. It is held that the respondent is not entitled to count the service rendered by him beyond the age of superannuation for the purposes of payment of gratuity. The respondent shall, however, be permitted to withdraw the amount of gratuity payable to him upto the age of superannuation i.e. 23.01.2000, if he has not already received the same. Rest of the amount shall be permitted to be withdrawn by the petitioner.