Full Text
HIGH COURT OF DELHI
W.P.(C) 2277/2015
Date of Decision: 7th April, 2015 UNIVERSITY OF DELHI ..... Petitioner
Through: Mr.G.K. Pathak, Adv.
Through: Mr.Sudesh Kumar Goyal, Adv. for R-1.
JUDGMENT
1. The petitioner has assailed order dated 18.03.2014 passed by the Controlling Authority under Payment of Gratuity Act, 1972 whereby the petitioner was directed to pay the difference of gratuity amount to respondent No.1 along with simple interest at the rate of 10% per annum as per Section 7 (3-A) of the Payment of Gratuity Act, 1972 (hereinafter referred to as the Act) and order dated 03.09.2014 passed by the Appellate Authority under the Payment of Gratuity Act, 1972 in Appeal No. ND.36(14)/2014-P.A. whereby the appeal filed by the petitioner under Section 7(7) of the Act was dismissed.
2. Notice.
3. Mr.Sudesh Kumar Goyal, Advocate enters appearance on advance notice on behalf of respondent No.1 and submits that he does not want to file reply. 2015:DHC:3122
4. With the consent of learned counsel for the parties, the matter is taken up for final disposal.
5. Succinctly stating the facts of the case as borne out from the petition are that the petitioner is Central University which came into existence by virtue of Delhi University Act, 1922 and the said Act has specific provisions under the Statute 28-A for payment of gratuity to its employees. Respondent No.2 i.e. University Grants Commission (UGC) with the approval of respondent No.3 i.e. Ministry of HRD introduced the provisions of payment of gratuity to the employees of Delhi University through Central Universities Retirement Benefit Rules, 1967. The employees of the petitioner are governed by the said provisions under its statute 28-A for payment of gratuity and accordingly the employees of the petitioner are being paid gratuity as per the same along with the Rules as aforesaid read with CCS Pension Rules.
6. The respondent No.1 is an ex-employee of the petitioner who retired on 28.02.2002 and was accordingly paid a sum of Rs.2,64,289/- (Rupees Two lakhs sixty four thousand two hundred and eighty nine) towards gratuity under Statute 28-A read with Central Universities Retirement Benefit Rules, 1967 and CCS Pension Rules.
7. The respondent No.1 herein moved an application for payment of difference of gratuity amount before the Controlling Authority under the Act. The same culminated in impugned order dated 18.03.2014 passed by the Controlling Authority whereby the petitioner herein was directed to pay the difference of gratuity amount to respondent No.1 along with simple interest at the rate of 10% per annum as per sub Section (3-A) of Section 7 of the Act from the date the gratuity became payable to respondent No.1. Against this order, the petitioner preferred an appeal before the Appellate Authority which came to be rejected by the Appellate Authority constituted under the Payment of Gratuity Act, 1972 vide impugned order dated 03.09.2014.
8. Learned counsel for the petitioner contends that Section 14 of the Act is not applicable in view of Statute 28-A of Delhi University Act, 1922 for the purpose of gratuity.
9. Learned counsel for the petitioner also submits that the petitioner had approached Ministry of Labour and Employment, Government of India for grant of exemption to the employees of the University of Delhi from the provisions of Payment of Gratuity Act, 1972 and the request of petitioner was rejected. The same was communicated to the petitioner vide letter No.S-42014/01/2013-SS.II dated 19/21.01.2015.
10. Before adverting to the facts of the present case, it is necessary to reproduce relevant Section 14 of the Payment of Gratuity Act, 1972 which reads as under:-
11. The Apex Court in ‘Allahabad Bank versus All India Allahabad Bank Retired Employees Association’, (2010) 2 SCC 44, observed as under:-
13. A similar question came up for consideration before this Court in W.P.(Civil) No.5138/2014 titled as „University of Delhi v. Sharwan Kumar Gupta and Others’ wherein it was held:-
14. At this juncture, it is relevant to consider the provisions of sub Section 2 of Section 5 of the Payment of Gratuity Act, 1972 which reads as under:-
15. In the present case, the petitioner approached the Ministry of Labour and Employment for grant of exemption to the employees of University of Delhi from the provisions of the Act. However, the request made by the petitioner was rejected vide letter dated 19/21.01.2015 in the following terms:- “No.S-42014/01/2013-SS.II Government of India Ministry of Labour & Employment Shram Shakti Bhawan, Rafi Marg, New Delhi dated 19th /21st January, 2015 To The Registrar, University of Delhi, Main Campus, Delhi-110007 Subject: Proposal to grant exemption to the employees of University of Delhi from the provisions of the Payment of Gratuity Act, 1972. Sir, I am directed to refer to your letter No.DU/124/Legal/ID /3830/2009 dated 09.10.2013 on the above mentioned subject. In this connection, it is stated that the above proposal has been examined in this Ministry in consultation with Chief Labour Commissioner (Central).
2. The Section 5 of the Payment of Gratuity Act, 1972 provides that exemption under the P.G. Act, 1972 can only be given if the gratuity benefits are not less favourable than the benefits conferred under P.G. Act,
1972. As the amount of gratuity as proposed by D.U. under CCS (Pension) Rules, 1972 read with statute 28-A of Delhi University Act, 1922, is less than the gratuity payable under P.G. Act, 1972 it is not possible to grant exemption to Delhi University under Section 5 of the P.G. Act, 1972 and therefore, rejected. Yours‟ faithfully sd/- (Subhash Kumar) Under Secretary to the Govt. of India”
16. In view of rejection of the prayer for exemption, the statutory provisions of the Payment of Gratuity Act, 1972 becomes applicable.
17. In the light of the aforesaid discussion, the petition is devoid of any merit. Accordingly, the petition is dismissed. CM No.4077/2015 The application is dismissed as infructuous.
JUDGE APRIL 07, 2015