RAJASTHAN WELFARE SOCIETY Vs. STATE OF RAJASTHAN

JUDGEMENT

(1.) Gratuity is to be paid to an employee on the termination of his employment in terms of the provisions of the Payment of Gratuity Act, 1972. The question for determination in the present case is whether the amount of gratuity payable to the employees of the aided educational institutions has to be taken into consideration or not for determining the amount of grant-in-aid. The question has to be examined in the context of Rajasthan Non-Government Educational Institution Act, 1989 (for short, the Act) which came into force with effect from 1st January, 1993.

(2.) The power of the State Government to make rules is contained in Section 43 of the Act. Section 43 of the Act, inter alia, provides that the Rules may provide for the terms and conditions for grant of recognition to Non-Government Educational Institutions. Rules can also be framed for the giving of grants-in-aid. In exercise of powers conferred by Section 43 and all other powers enabling the State Government in this behalf, Rules called the Rajasthan Non-Government Educational Institutions (Recognition, Grant-in-Aid and Service Conditions Etc.) Rules, 1993 (for short, the Rules) have been made.

(3.) The appellant is running an aided educational institution. The expression aided institution has been defined in Section 2(b) of the Act to mean a recognized institution which is receiving aid in the form of maintenance grant from the State Government. The Act has been enacted to provide for better organization and development of education in the non-Government Educational Institutions in the State of Rajasthan. The expression recognised institution is defined in Section 2(q) of the Act to mean a Non-Government Educational Institution affiliated to any University or recognized by the Board of Education or any officer authorized by the State Government or the Director of Education in this behalf. The educational institution being run by the appellant is a recognized institution.