University of Delhi v. Laxman Dass & Ors.

1. This bunch of appeals all assail orders of the learned Single Judge dated 13'"^ August, 2014 dismissing the writ petitions which had been filed by the University ofDelhi-appellant herein.

2. The respondent herein had sought payment of gratuity under the Payment of Gratuity Act, 1972 before the Controlling Authority under the Payment of Gratuity Act, 1972. These petitions culminated in an order dated 30"^ September, 2013 passed by the Controlling Authority directing the appellant-University of Delhi to pay gratuity to these private respondents. The appeals of the appellant-University of Delhi came to be rejected by the appellate authority constituted under the Payment of Gratuity Act, 1972 vide order dated 2^^ April,

2014.

3. These directions and dismissal of the appeal resulted in the University invoking the writ jurisdiction of this court before the learned Single Judge. After considering the matter, the writ petitions ofthe University ofDelhi have been dismissed necessitating the present appeals.

4. We have heard learned counsel for the parties and have been taken through the record ofthe case.

5. Before the writ court as well as in the present appeal, the primary ground of challenge by the University of Delhi is that it had sought exemption from the Central Government from applicability of the statute under Sub-Section 3 of Section 5 ofthe Payment of LPA 770,771,772,792,793,794,795,796,797,798,799/2014 page 2 of[6] Gratuity Act, 1972 from making payment of gratuity to its employees.

6. It is the case of the University of Delhi even before us that it is governed by the Delhi University Act, 1922 and the Statutes and Ordinances framed thereunder. In exercise of its statutory power, the University of Delhi has notified the Central University Retirement Benefits Rules, 1967. These rules coupled with the provisions of Section 28A enabled the University of Delhi to formulate and enforce its own gratuity scheme.

7. We may hereunder set down the provisions of Sub-section 2 of Section 5 ofthe Payment of Gratuity Act which reads as follows "5(2) The aprpropriate Government may, by notification and subject to such conditions as may be specified in the notification, exempt any employees or class of employees employed in any establishment, factory, mine, oilfield, plantation, port, railway company or shop to which this Act applies from the operation of the provisions of this Act, if, in the opinion of the appropriate Government, such employee or class of employees are in receipt of gratuity or pensionary benefits not less favourable than the benefits conferred under this Act."

8. On the last date of hearing, Mr. Sanjeev Narula, learned standing counsel appearing for the Central Government had placed before us a copy of an order dated 19^V21®^ January, 2015 issued by the Ministry of Labour & Employment of the Government of India rejecting the request of the University for grant of exemption of applicability ofthe gratuity enactment in the following terms LPA 770,771,772,792,793,794,795,796,797,798,799/2014 page 3 of[6] To, " No.S-42014/01/2013-SS.II Government of India Ministry ofLabour & Employment Shram Shakti Bhawan, Rafi Marg, New Delhi dated January, 2015 The Registrar, University of Delhi, Main Campus, Delhi-110007. Subject: Proposal to grant exemption to the employees of -V 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 28A 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. ofIndia"

9. In view ofthe rejection of the prayer for exemption,the LPA 770,771,772,792,793,794,795,796,797,798,799/2014 \ H statutory provisions of the Payment of Gratuity Act, 1972 squarely become applicable to all employees of theUniversity ofDelhi.

10. We maynote that the University of Delhi doesnot dispute its liability to pay gratuity to its employees. It has beenorally submitted before us that the postulation by the University of payments which may be payable under Statute 28 is more beneficial to the employees than the payments which are to be effected under the Payment of -~J' Gratuity Act, 1972. Be that as it may, till such time the University is exempted from application of the Payment of Gratuity Act, 1972, it has to comply with the provisions thereof and ensure payment in terms thereof.

11. Our attention is also drawn to an order dated 19^*^ January, 2015 whereby a Division Bench of this court rejected LPA Nos. 20 & 21/2015 which had also been filed by the University of Delhi assailing orders of the learned Single Judge directing compliances with the Payment of Gratuity Act, 1972. ^ The writ petition were dismissed in view of the fact that the appellant herein was bound to comply with the provisions of the Payment of Gratuity Act for the reason that it had not been granted any exemption from application ofthe Act.

12. In this view of the matter, we find no infirmity in the orders of the learned Single Judge at all. LPA 770,771,772,792,793,794,795,796,797,798,799/2014 page 5 of[6] These appeals are accordingly dismissed. OTAMIIXAfcTJ MARCH 23, 2015(la:) P.S.TEJI,/ J