V.T. RADHA Vs. CHAIRMAN & MANAGING DIRECTOR

JUDGEMENT

(1.) This intra court appeal filed by the first respondent in W.P. (C)No.27110/2013 challenges the judgment dtd. 16/10/2017 allowing the writ petition. The respondents herein are the petitioner and respondents 2 and 3 respectively in the writ petition. The parties and the documents will be referred to as described in the writ petition.

(2.) The petitioner is a bank constituted under the Regional Rural Banks Act, 1976. The first respondent was employed on commission basis by the petitioner bank as 'Nithya Nidhi Deposit' agent for the purpose of mobilising deposits under the 'Nithya Nidhi Deposit Scheme'. The first respondent worked for the petitioner bank as per the agreements/contracts entered into from time to time for a period of about 30 years from 01/02/1979 to 24/03/2009. The first respondent was drawing a commission of ?8,000/- when he left the services of the petitioner bank. Pursuant there to, he preferred a claim for gratuity under the Payment of Gratuity Act, 1972 (the Gratuity Act). The controlling authority as per Ext.P1 order dtd. 14/11/2012 taking note of the long years of service rendered by the first respondent and relying on the dictum in Indian Banks Association v. Workmen of Syndicate Bank, (2001)3 SCC 36, found employer-employee relationship between the parties and held that he was in fact an employee for the purpose of payment of gratuity. An amount of ?1,38,462/- was thus determined as the gratuity payable to the first respondent with interest @10% per annum from the date of order till actual payment. An appeal preferred by the petitioner bank before the appellate authority, resulted in Ext.P5 order dtd. 02/09/2013 by which Ext.P1 order was affirmed. Hence, the writ petition challenging Ext.P1 and Ext.P5 orders.

(3.) The learned Single Judge disagreed with the findings in Exts.P1 and P5 orders and so quashed the same. Aggrieved, the first respondent has come up in appeal.