{"id":246634,"date":"2008-05-06T00:00:00","date_gmt":"2008-05-05T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/chhattisgarh-housing-board-vs-appellate-authority-under-the-on-6-may-2008"},"modified":"2019-02-14T03:06:24","modified_gmt":"2019-02-13T21:36:24","slug":"chhattisgarh-housing-board-vs-appellate-authority-under-the-on-6-may-2008","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/chhattisgarh-housing-board-vs-appellate-authority-under-the-on-6-may-2008","title":{"rendered":"Chhattisgarh Housing Board vs Appellate Authority Under The on 6 May, 2008"},"content":{"rendered":"
Chattisgarh High Court<\/div>\n
Chhattisgarh Housing Board vs Appellate Authority Under The on 6 May, 2008<\/div>\n
       \n\n  \n\n  \n\n \n \n             HIGH COURT OF CHATTISGARH AT BILASPUR      \n\n              WRIT PETITION (L) No. 7346 of 2007\n\n\n\n\n\n                   Chhattisgarh   Housing   Board\n\n\n                       ...Petitioners\n                          VERSUS\n\n                    1.Appellate  Authority  Under  the\n                        Payment of Gratuity Act\n\n                     2.Controlling Authority Under the\n                       Payment of Gratuity Act\n\n                      ...Respondents\n\n\n!         Shri Sanjay Patel\n\n^          Miss Sunita Jain\n           Shri S.K.Guha\n\n\n\n\n\n           Hon'ble Shri Satish K. Agnihotri, J\n\n\n Dated:06\/05\/2008 \n\n: Judgment \n\n                             ORDER\n<\/pre>\n
               (Passed on 06th day of May, 2008)<\/p>\n
  1.   By this petition, the petitioner challenges the  validity<\/p>\n
       of the order dated 11.7.2007 (Annexure P\/5) passed by the<\/p>\n
       Appellate Authority under the Payment of Gratuity Act, 1972 and<\/p>\n
       Deputy Labour Commissioner, Raipur, whereby the appeal filed by<\/p>\n
       the petitioner against the order dated 6.1.2007 (Annexure P\/4)<\/p>\n
       passed by the respondent No. 2, was dismissed. The petitioner<\/p>\n
       further challenges the validity of the order dated 6.1.2007<\/p>\n
       (Annexure P\/4), whereby the petitioner was directed to consider<\/p>\n
       28 years of service of the respondent No. 3 for the purpose of<\/p>\n
       calculation of gratuity.\n<\/p>\n<\/p>\n
2.   The brief facts, in nutshell, are that the respondent No.
\n3 was initially appointed in Chuna factory on 25.11.77. When
\nthe factory was closed on 21.03.1994, the employees, including
\nthe respondent No. 3 was taken over by the petitioner on
\n06.01.2001 with effect from 21.03.1994. The respondent No. 3
\nretired from service on 30.04.2005. The petitioner, after
\nhaving calculated the service of the respondent No. 3 from
\n21.03.1994 to 30.04.2005, as 11 years, 1 month and 9 days,
\ncomputed the gratuity amount to the tune of Rs. 20,000\/- and
\npaid the same.\n<\/p>\n
  3.   Being  aggrieved,  the respondent  No.  3  preferred  an<\/p>\n
       application before the respondent No. 2 for consideration of<\/p>\n
       his service with effect from 25.11.1977. The respondent No. 2,<\/p>\n
       vide order dated 6.1.2007 (Annexure P\/4) considered the service<\/p>\n
       period from first date of appointment in Chuna Factory i.e.<\/p>\n
       25.11.77 till 30.04.2005, as 28 years and directed to compute<\/p>\n
       the gratuity on the basis of service of 28 years and to make<\/p>\n
       the payment accordingly. Being aggrieved, the petitioner<\/p>\n
       preferred an appeal before the respondent No. 1. The respondent<\/p>\n
       no. 1, by its order dated 11.7.2007 (Annexure P\/5) confirmed<\/p>\n
       the findings recorded by the respondent No. 2 and dismissed the<\/p>\n
       appeal. Thus, this petition.\n<\/p>\n<\/p>\n
  4.   Shri  Sanjay  Patel, learned counsel appearing  for  the<\/p>\n
       petitioner would submit that the respondent No. 3 was in<\/p>\n
       seasonal establishment and has worked for less than fifty<\/p>\n
       percent of the number of days during operation of the said<\/p>\n
       establishment. The respondent No. 3 in his return  dated<\/p>\n
       17.3.2008, in para 3, has admitted that he was a seasonal<\/p>\n
       employee and no appointment order was issued to him. The<\/p>\n
       respondent No. 3 had never worked even for fifty percent of the<\/p>\n
       number of days when the old establishment i.e. Chuna factory<\/p>\n
       was in operation and as such, the respondent No. 3 was not in<\/p>\n
       continuous service before his services was taken over by the<\/p>\n
       petitioner on 6.1.2001.\n<\/p>\n
  5.   Shri Patel would further submit that section 2-A defines<\/p>\n
       “continuous service” for the purpose of Payment of Gratuity<\/p>\n
       Act, 1972 (hereinafter referred to as `the Gratuity Act’).<\/p>\n
       Section 2A(3) of the Gratuity Act provides that where an<\/p>\n
       employee employed in seasonal establishment, is  not  in<\/p>\n
       continuous service within the meaning of clause (1), for period<\/p>\n
       of  one year or six months, he shall be deemed to be  in<\/p>\n
       continuous service under the employer for such period if he has<\/p>\n
       actually worked for not less than seventy-five percent of the<\/p>\n
       number of days on which the establishment was in operation<\/p>\n
       during  such  period. Thus, the employee in  a  seasonal<\/p>\n
       establishment has to work for not less than seventy-five<\/p>\n
       percent of the number of days on which the establishment was in<\/p>\n
       operation during such period. Thus, there was no continuity of<\/p>\n
       service which can be taken into consideration for the purpose<\/p>\n
       of computation of gratuity.\n<\/p>\n<\/p>\n
  6.   Shri  Patel would next submit that the authorities below<\/p>\n
       have failed to consider the legal provisions for the purpose of<\/p>\n
       continuous service when admittedly, the respondent No. 3 had<\/p>\n
       never worked even for fifty percent of number of days on which<\/p>\n
       the establishment was in operation.\n<\/p>\n<\/p>\n
  7.   Shri  Guha, learned counsel appearing for the respondent<\/p>\n
       No. 3 would submit that the respondent No. 3 was a seasonal<\/p>\n
       employee working in Chuna factory from 25.11.77 to 21.03.1994.<\/p>\n
       He had never worked even for 50 percent of number of days on<\/p>\n
       which the establishment was in operation. Since 06.01.2001 the<\/p>\n
       petitioner issued a circular whereby the service of  the<\/p>\n
       respondent No. 3 was taken over by the petitioner w.e.f.<\/p>\n
       21.03.1994 the date when the establishment was closed. The<\/p>\n
       respondent no. 3 worked under the petitioner from 06.01.2001 to<\/p>\n
       30.04.2005.\n<\/p>\n<\/p>\n
  8.   I have heard and considered rival contentions advanced by<\/p>\n
       the learned counsel appearing for the parties, perused the<\/p>\n
       pleadings and documents appended thereto. It is evident that<\/p>\n
       the respondent No. 3, on his own admission had not worked even<\/p>\n
       for  fifty  percent of the number of days on  which  the<\/p>\n
       establishment was in operation. Under Section 2A(3) of the<\/p>\n
       Gratuity Act, in order to claim continuity in service in case<\/p>\n
       of seasonal establishment, it is necessary that the employee<\/p>\n
       should work for not less than 75 percent of the number of days<\/p>\n
       on which the establishment was in operation during such period.<\/p>\n
       Section 2A(1) and (3) of the Gratuity Act, 1972 reads as under:<\/p>\n
            “2-A.  Continuous service. – For the  purpose  of
\n            this Act, –\n<\/p><\/blockquote>\n
            (1)  an employee shall be said to be in continuous service for
\n               a period if he has, for that period, been in uninterrupted
\n               service, including service which may be interrupted on account
\n               of sickness, accident, leave, absence from duty without leave
\n               (not being absence in respect of which an  order treating the
\n               absence as break in service has been passed in accordance with
\n               the standing orders, rules or regulations governing the
\n               employees of the establishment), lay-off, strike or a lock-out
\n               or cessation of work not due to any fault of the employee,
\n               whether such uninterrupted or interrupted service was rendered
\n               before or after the commencement of this Act;\n<\/p><\/blockquote>\n
            (2)  xxx       xxx  xxx<\/p>\n
            (3)where  an employee, employed in a seasonal
\n               establishment,   is  not   in   continuous
\n               service within the meaning of clause  (1),
\n               for  any period of one year or six months,
\n               he  shall  be  deemed to be in  continuous
\n               service under the employer for such period
\n               if  he  has actually worked for  not  less
\n               than seventy five percent of the number of
\n               days  on  which the establishment  was  in
\n               operation during such period.”\n<\/p><\/blockquote>\n
  9.   It is well settled position in law that admission is the<\/p>\n
       best piece of evidence against the person making an admission.<\/p>\n
       (See Delhi Transport Corporation v. Shyam Lal1).<\/a><\/p>\n
  10.  The  Supreme  Court,  in  the matter  of  Banaras  Hindu<\/p>\n
       University, Varanasi and another v. Dr. Indra  Pratap Singh2,<\/p>\n
       has held as under:\n<\/p>\n<\/p>\n
               “12.  In Words and Phrases (Vol.9) the word
\n               “continuous  employment”  is  assigned  the
\n               following meaning:\n<\/p><\/blockquote>\n
               “It    means    working   with   reasonable
\n               regularity, and work does not cease  to  be
\n               `continuous’  because  of  interruption  in
\n               occupation  due  to  periods  of  temporary
\n               illness, such as are the incident to people
\n               of  normal health. `Continuously’, as  used
\n               in  regulations  defining  total  permanent
\n               disability under war risk policy, does  not
\n               denote absolute continuity.”\n<\/p><\/blockquote>\n
  11.  It is true that the gratuity for workers is no longer  a<\/p>\n
       gift but a right. The right flows from the provisions of the<\/p>\n
       Gratuity Act. Bare perusal of the definition of continuous<\/p>\n
       service as enshrined in Section 2A of the Gratuity Act, it is<\/p>\n
       clear that the actual work is not necessary but for calculation<\/p>\n
       of continuous service in seasonal establishment, the employee<\/p>\n
       ought to have worked not less than 75 percent of the number of<\/p>\n
       days during the period seasonal establishment was in operation.<\/p>\n
       Chuna factory is admittedly a seasonal establishment and the<\/p>\n
  respondent No. 3 in his return has admitted that he had never<\/p>\n
       worked even for fifty percent of the total days during which<\/p>\n
       the seasonal establishment i.e. Chuna factory was in operation.<\/p>\n
  12.  The  respondent No. 1 and 2 are in serious  error  while<\/p>\n
       holding that the service of the petitioner should be counted<\/p>\n
       from the initial date of appointment in seasonal establishment<\/p>\n
       i.e. 25.11.1977. The authorities below have not considered the<\/p>\n
       definition of continuous service in its right perspective as<\/p>\n
       enshrined in section 2A of the Gratuity Act.\n<\/p>\n<\/p>\n
  13.  The petitioner has rightly calculated 11 years, one month<\/p>\n
       and 9 days for the purpose of gratuity and granted the gratuity<\/p>\n
       from  the  date of taking over i.e. 21.03.1994 till  the<\/p>\n
       respondent No. 3 retired from service on 30.04.2005, and<\/p>\n
       payment was made accordingly.\n<\/p>\n<\/p>\n
  14.  For  the  reasons mentioned hereinabove,  this  petition<\/p>\n
       succeeds. The orders dated 11.7.2007 (Annexure P\/5)  and<\/p>\n
       06.01.2007 (Annexure P\/4) are quashed. The petition is allowed.<\/p>\n
       No order asto costs.\n<\/p>\n<\/p>\n
                                                      JUDGE<\/p>\n","protected":false},"excerpt":{"rendered":"
Chattisgarh High Court Chhattisgarh Housing Board vs Appellate Authority Under The on 6 May, 2008 HIGH COURT OF CHATTISGARH AT BILASPUR WRIT PETITION (L) No. 7346 of 2007 Chhattisgarh Housing Board …Petitioners VERSUS 1.Appellate Authority Under the Payment of Gratuity Act 2.Controlling Authority Under the Payment of Gratuity Act …Respondents ! Shri Sanjay Patel ^ […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[12,8],"tags":[],"class_list":["post-246634","post","type-post","status-publish","format-standard","hentry","category-chattisgarh-high-court","category-high-court"],"yoast_head":"\nChhattisgarh Housing Board vs Appellate Authority Under The on 6 May, 2008 - Free Judgements of Supreme Court & High Court | Legal India<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalindia.com\/judgments\/chhattisgarh-housing-board-vs-appellate-authority-under-the-on-6-may-2008\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Chhattisgarh Housing Board vs Appellate Authority Under The on 6 May, 2008 - 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