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Civil · Reportable judgment

Nagar Ayukt Nagar Nigam, Kanpur vs Sri Mujib Ullah Khan and Another

Court
Supreme Court of India
Date
2 April 2019
Case No.
Civil Appeal No. 2628 of 2017
Result
Dismissed
Bench
Mohan M. Shantanagoudar, Hemant Gupta
Citation
[2019] 6 S.C.R. 1028 : 2019 INSC 449
Supreme Court Reports [2019] 6 S.C.R. 1028 : 2019 INSC 449
Headnote

Payment of Gratuity Act, 1972 – ss.1(3)(c) and 14 – Retirement and Benefits and General Provident Fund Regulations, 1962 – r.4(1) – Uttar Pradesh Municipal Corporation Act, 1959 – s.548 – Employees of Municipal Corporation claimed gratuity by invoking the jurisdiction of the controlling authorities under the Act, 1972 – Controlling authorities allowed the petition for gratuity in favour of the employees – Appellant contended that gratuity is payable in terms of r.4(1) of the 1967 Regulations published under the Act, 1959 – Therefore, the employees of the Municipalities were entitled to gratuity only in terms of such Regulations and not under the Act, 1972 – High Court held that employees of Municipalities were entitled to the gratuity in terms of the provisions of the Act, 1972 – On appeal, held: Central Government had published a notification dated 8.1.1982 in terms of s.1(3)(c) of the Act, 1972 which made it clear that the Act is applicable to the local bodies i.e. the Municipalities – s.14 of the Act, 1972 has given an overriding effect over any other inconsistent provision in any other enactment – In view of s.14, the provision in the State Act contemplating payment of Gratuity will be inapplicable in respect of the employees of the local bodies – Thus, there is no error in the orders passed by the controlling authorities under the Act and as maintained by the High Court – General Clauses Act, 1987 – s.3(31).

Dismissing the appeals, the Court

HELD: 1. In terms of the Section 1(3)(c) of the Payment of Gratuity Act, 1972, the Central Government has published a notification on 08.01.1982 and specified Local Bodies in which ten or more persons are employed, or were employed, on any day of the preceding twelve months as a class of establishment to which this Act shall apply. The notification dated 08.01.1982 was not referred to before the High Court. Such notification makes it abundantly clear that the Act, 1972 is applicable to the local bodies i.e., the Municipalities. Section 14 of the Act, 1972 has given an overriding effect over any other inconsistent provision in any other enactment. In view of Section 14 of the Act, the provision in the State Act contemplating payment of Gratuity will be inapplicable in respect of the employees of the local bodies. [Paras 10, 11 and 12][1032-F; 1033-C; E]

Read the full headnote (3 more paragraphs)

2. The entire argument of the appellant is that the State Act confers the restrictive benefit of gratuity than what is conferred under the Central Act. Such argument is not tenable in view of Section 14 of the Act and that liberal payment of gratuity is in fact in the interest of the employees. Thus, the gratuity would be payable under the Act, 1972. Such is the view taken by the Controlling Authority. In view of the aforesaid, there is no error in the orders passed by the Controlling Authorities under the Act and as maintained by the High Court. [Paras 14, 15] [1033-G-H; 1034-A]

Municipal Corporation of Delhi v. Dharam Prakash Sharma and Another AIR 1999 SC 293: (1998) 7 SCC

221 – referred to.

As published in the Supreme Court Reports, Supreme Court of India. Text from the Indian Supreme Court Judgments open data set (Dattam Labs), CC BY 4.0.

Full Judgment Text

The Judgment of the Court was delivered by HEMANT GUPTA J. 1. The challenge in Civil Appeal No. 2628 of 2017 is to an order dated 19.04.2007 passed by the learned Single Bench of the High Court of Judicature at Allahabad, whereby an order dated 08.12.2006passed by the Controlling Authority, Kanpurunder the Payment of Gratuity Act, 19721 was not interfered with. 2. Civil Appeal No. 2629 of 2017 has also been taken up along with present appeal wherein the challenge is to an order dated 02.05.2007 of the High Court of Judicature at Allahabad upholding an order dated 29.04.2006of Controlling Au
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