{"id":61521,"date":"2001-03-27T00:00:00","date_gmt":"2001-03-26T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/e-i-d-parry-i-limited-vs-g-omkar-murthy-ors-on-27-march-2001"},"modified":"2017-04-19T11:29:57","modified_gmt":"2017-04-19T05:59:57","slug":"e-i-d-parry-i-limited-vs-g-omkar-murthy-ors-on-27-march-2001","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/e-i-d-parry-i-limited-vs-g-omkar-murthy-ors-on-27-march-2001","title":{"rendered":"E I D Parry (I) Limited vs G. Omkar Murthy &amp; Ors on 27 March, 2001"},"content":{"rendered":"<div class=\"docsource_main\">Supreme Court of India<\/div>\n<div class=\"doc_title\">E I D Parry (I) Limited vs G. Omkar Murthy &amp; Ors on 27 March, 2001<\/div>\n<div class=\"doc_author\">Author: R Babu<\/div>\n<div class=\"doc_bench\">Bench: S. Rajendra Babu, S.N. Variava<\/div>\n<pre>           CASE NO.:\nAppeal (civil) 5956-5958  of  1999\n\n\n\nPETITIONER:\nE I D  PARRY (I) LIMITED\n\n\tVs.\n\nRESPONDENT:\nG. OMKAR MURTHY &amp; ORS.\n\nDATE OF JUDGMENT:\t27\/03\/2001\n\nBENCH:\nS. Rajendra Babu &amp; S.N. Variava\n\n\n\n\nJUDGMENT:\n<\/pre>\n<p>J  U  D\t G  M  E  N  T<br \/>\nRAJENDRA BABU,\tJ. :\n<\/p>\n<p>L&#8230;I&#8230;T&#8230;&#8230;.T&#8230;&#8230;.T&#8230;&#8230;.T&#8230;&#8230;.T&#8230;&#8230;.T&#8230;&#8230;.T..J<\/p>\n<p>    In\tthese  cases the respondents-employees were  in\t the<br \/>\nemployment of the appellant between the years 1958 and 1984.<br \/>\nOn   October  1,  1984\t voluntary  retirement\tscheme\t was<br \/>\nintroduced  and the respondents availed of that benefit\t and<br \/>\nleft  the services after obtaining the terminal benefits  as<br \/>\nprovided   under   the\tPayment\t of   Gratuity\t Act,\t1972<br \/>\n(hereinafter  referred to as the Central Act].\tThereafter<br \/>\npetitions  were filed under Section 44 of the Andhra Pradesh<br \/>\nShops  and Establishments Act, 1966 (hereinafter referred to<br \/>\nas  the\t State\tAct] claiming the difference  between  the<br \/>\ngratuity  received  by them and the gratuity  payable  under<br \/>\nSection 40 of the State Act.  Before the Authority under the<br \/>\nState  Act, three objections were raised that (i) there\t has<br \/>\nbeen  inordinate  delay in preferring the claim;   (ii)\t for<br \/>\npayment\t of gratuity the Central Act prevails over the State<br \/>\nAct,  and  (iii) the question whether the  gratuity  payable<br \/>\nunder  the Central Act is more favourable than the State Act<br \/>\ncould  not  be examined by the trial court  concerned.\t The<br \/>\ntrial  court,  however,\t gave relief to\t the  workmen.\t The<br \/>\nappellate  authority  dismissed\t all   the  three   appeals.<br \/>\nRevision  petitions  filed before the High Court also  stood<br \/>\ndismissed.  Hence these appeals by special leave.\n<\/p>\n<p>    Four contentions are put forth before us, namely, that<\/p>\n<p>    (i)\t The  Central  Act prevails over the  State  Act  by<br \/>\nvirtue\tof Article 254 of the Constitution and Section 40(3)<br \/>\nis invalid and the claims are unsustainable;\n<\/p>\n<p>    (ii)  Section  40(3) of the State Act stood repealed  on<br \/>\nthe  coming  into  force  of the Andhra\t Pradesh  Shops\t and<br \/>\nEstablishments\tAct, 1988 and gratuity became payable  under<br \/>\nSection\t 47(5) of the State Act where payment of gratuity is<br \/>\nnot payable under the Central Act;\n<\/p>\n<p>    (iii)  Section  14\tof the Central Act  overrides  other<br \/>\nenactments in relation to gratuity, and<\/p>\n<p>    (iv)  The respondents have been paid gratuity under\t the<br \/>\nCentral\t Act  for  the period covered and  for\tthe  balance<br \/>\nperiod\tof  service  gratuity is paid under  the  prevailing<br \/>\ntrust scheme.\n<\/p>\n<p>    At\tthe  relevant time when the respondents\t voluntarily<br \/>\nretired\t from  service\tthe definition of  employee  under<br \/>\nSection\t 2(e)  of  the Central Act read as  not\t to  include<br \/>\nemployee  whose wages exceeded Rs.  1,000\/- per mensem while<br \/>\nthe  respondents-employees were all getting wages more\tthan<br \/>\nRs.   1,600\/-  per  mensem and, therefore, the\tCentral\t Act<br \/>\ncould  not  be\tapplied.   If that is so,  it  is  certainly<br \/>\npermissible  for the respondents to have made an application<br \/>\nfor  payment  of gratuity under Section 40(3) of  the  State<br \/>\nAct.   Further the scheme of the Central Act would  indicate<br \/>\nthat it would not be applicable in cases where the State Act<br \/>\nis  more beneficial than the Central Act.  In this case, the<br \/>\nfinding\t is  that the State Act is more beneficial than\t the<br \/>\nCentral\t Act.\tTherefore,  the\t contentions  sought  to  be<br \/>\nadvanced  on  behalf  of the appellant as to  repugnancy  or<br \/>\notherwise  of the State Act would not arise at all.  If both<br \/>\nthe enactments can co-exist and can operate where one Act or<br \/>\nthe  other  is not available then we find no  difficulty  in<br \/>\nmaking\tthe  State  Act\t applicable on\tthe  fact  situation<br \/>\navailable  as has been done in the present case.  Therefore,<br \/>\nwe  find  that\tthe  contentions raised\t on  behalf  of\t the<br \/>\nappellant are unsustainable.\n<\/p>\n<p>    Shri  Narayan  B.  Shetye, the learned  Senior  Advocate<br \/>\nappearing  for the appellant, submitted that the Central Act<br \/>\nis  a  complete\t code  containing  detailed  provisions\t and<br \/>\ncreates\t right\tof payment of gratuity and,  therefore,\t the<br \/>\nCentral Act should prevail over the State Act.\tReliance has<br \/>\nbeen placed on the decision of this Court in <a href=\"\/doc\/1715196\/\">State of Punjab<br \/>\nv.   Labour  Court, Jullundur &amp; Ors.,<\/a> 1980 (1) SCR 953.\t  In<br \/>\nthat case the issue before the Court was whether for payment<br \/>\nof  gratuity  an  application could be\tmade  under  Section<br \/>\n33-C(2)\t of  the Industrial Disputes Act, 1947, and  it\t was<br \/>\nheld  that such an application could not be filed under\t the<br \/>\nsaid  Act.   Therefore,\t this  decision\t cannot\t be  of\t any<br \/>\nassistance  to the appellant inasmuch as the question before<br \/>\nus  is whether the Central Act or the State Act would  apply<br \/>\nfor payment of gratuity.\n<\/p>\n<p>    The\t decision  in  M.S.R.  Murthy  v.   Arva  Somayajula<br \/>\nYagneswara Chenulu, 1985 LAB I.C.  189, also is of no use to<br \/>\nthe  appellant\tinasmuch  as the State Act is  held  not  to<br \/>\noperate\t to  the  extent the Central Act prevails.   In\t the<br \/>\npresent\t case, on facts, it is found that the Central Act is<br \/>\nnot applicable.\n<\/p>\n<p>    Therefore,\twe find no substance in any of the arguments<br \/>\nadvanced  by  the appellant.  The appeals, therefore,  stand<br \/>\ndismissed.  No costs.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Supreme Court of India E I D Parry (I) Limited vs G. Omkar Murthy &amp; Ors on 27 March, 2001 Author: R Babu Bench: S. Rajendra Babu, S.N. Variava CASE NO.: Appeal (civil) 5956-5958 of 1999 PETITIONER: E I D PARRY (I) LIMITED Vs. RESPONDENT: G. OMKAR MURTHY &amp; ORS. DATE OF JUDGMENT: 27\/03\/2001 BENCH: [&hellip;]<\/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":[30],"tags":[],"class_list":["post-61521","post","type-post","status-publish","format-standard","hentry","category-supreme-court-of-india"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>E I D Parry (I) Limited vs G. 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